INTERVENTION: The Dumbest Financial Decisions I've Ever Seen

all right let's look at one of your biggest expenses sugar baby and I see a bunch of cash up left right left every day she's draining you dry my friend what's going on you're lazy you can't walk you're taking the lift to go to buy food What's happen what's happening man sugar baby oh my gosh do you have your credit card here today yeah you want to cut it or actually it's right here perfect Edie Bye Felicia all right see you okay that's it it's gone it's gone you will not touch this card until it's at zero do you take that commitment welcome to finance action the show where we take action my name is romman and today I am with Santiago how are you doing doing good doing good how about you doing great Santiago let's look at your profile Santiago you are 23 years old you're originally from New Jersey but currently live in Seattle and you are unemployed as of today is that right uh yeah that's the case okay looking at the way you've R your personal finances from chilling to MayDay Santiago you rated yourself as surviving yeah it is not too bad but I think I wish it was a little bit better Sano woke me through what is going on right now the way that I'll put it is I'm paying all my bills everything looks good everything's fine is it good though like in the in the in the situation of I'm I'm surviving right so I'm I'm I'm floating but if if there was a hole put in the boat it would sink right now you feel me so we surviving you know living of just a fine line for our friend here Sano you will see what an interesting story here as such a young age but we've already quite a bit of experience walking briefly through kind of how has been your parre of life it's been a crazy life um I would say a lot of a lot of change has happened in my life a lot of inconsistency like no no stabilization my mom's from La she's a my mom a gang banger from La you feel me she got away from that lifestyle man thank thank her you feel me for getting us out of that lifestyle um same thing with her husband gang banger from La same thing and so what do you mean by gang banger man they I'm say that's I'm going to say yeah yeah that's it oh and so um you know I'm not associated or involved with any of that but uh that's what they was on and so I didn't have I would say the best role models they tried their best but they they didn't they didn't have the best role models to be the best role models for us um you know background on my family my mom schizophrenic uh she has a broken back and she's I would say she she's been on surgery most of our life she probably had at least 10 surgeries when I was a kid so you know she was on bed Rush a lot uh on top of that she had seven kids so every seven kids every and and back to back to back I the age ranges 14 to 25 so that's a 10e range was she making an income seven kids social security she was on disability we had uh Section 8 by the time I was five and uh she had her disability food stamps in Section 8 and you know living you know neighborhood babies that's how we were food stamp section 8ow and Social Security we were lucky that we had the disability some people only got the food stamps we had the section and the disability that was a blessing okay so did you have a father Presence at least to help out um on and off my I don't know my dad um my you know your dad yeah I don't know my real dad never met him before so uh my mom she married this she married this dude um when I was young he was you know good people they met in church and he he was working the recession got him and he he got laid off and I I don't think he really picked up a job after that so U male Ro model you know for when I was younger for a little portion of our life when we were you know doing things the right way we're going to church you know my mom got married everything like that that crumbled fell apart um right around the time my mom actually decided she wanted to get off of Section 8 and she wanted to pursue buying a house and then when they they split up she couldn't manage that house by herself and she lost she lost the house and then she couldn't get back on Section 8 of course so we we've been trying to make it work every since then um we had the the support um from the government growing up but now you know we we're working to make it work we're older now though so you know it's we're we're able to work through it and we're able to come together and support each other but so a pretty tight family and super tight yeah but you are one of the oldest yeah I'm the man at the house I'm the I'm the oldest boy at 22 years old 23 since I was 15 years old you know been the men we were when I was I say 15 that's relevant that's the around the time pops moved out um and so that's when I became into the house we were homeless like I said we lost the crib lost the Section 8 um so like really just working to get the family on their feet and uh my you know as each sibling got old enough to do the same thing they did the same thing okay um that is very interesting and uh yeah probably done a ton of experience at such a young age because I'm sure then with a mother that was disabled and maybe not as able to help carry all the childrens and just the education so on you have to kind of man up very rapidly and take care of uh control of kind of the siblings and there was no other father presence to help balance all of that yeah no there wasn't there wasn't it was I mean my father presence was hip-hop music uh inspirational speakers on YouTube and some authors of some books you know those some of the role models that I had speaking of them books you know like four agreements uh Power of Now The Alchemist those are some you know I I really think I got most of anything that I learned at the time from anything I could find online which was audible YouTube and and music okay so that probably then explained why you have so much expenses that are coming to a freaking crowd of people left and right and left and right but today you also unemployed so doesn't help out and that brings you into a pretty difficult position I would say Santiago looking at some of what you brought in with you today is there anything that I should know about your life that you've not mentioned here that will link to your finances today I got a good background or understanding of what it looks like to budget my money but I feel like one of the things I thought about recently is I haven't had really a direction of what I'm budgeting for for and if I'm going to be straight with you it's cuz in my mind I'm I'm an artist I make music in my mind I'm not I'm not a 9 to5 if I don't if I'm not making music I'm an entrepreneur right so I think I've had this kind of mindset of everything I'm saving for is either going to be for the thrill of life or for an investment into what my passion is which in my mind you know call me crazy but it's so big that you know I'll be straight right and that's you know it's a it's a deep thought to have or you know but it's important to have the base of finances beforehand jumping ship and I would say my my actions align with that ideology as well because like for example uh I just put my first investment into acorns that's good trying to you know I do a little 500 for my last check and I'm planning on doing that every single paycheck into my investment accounts uh I used to save but I did the shoe box method you feel me that's good shoe box under the bed and Cas where's this uh it's in the shoe box oh at home it's under yeah how much is it it's only it's only a couple hundred so where so where is all that money that you've saved then yeah I would say all the money that I save ends up going towards the thrill of Life the vacations yeah yeah um the holidays I got six siblings that's a lot of birthdays that's a lot on Christmas that's you know my family don't live in the same state as me so that's I got to visit them quite often uh I got a partner I got my girl yep and she is very expensive holy smokes man come on dude you're a sugar daddy with an employment holy Mo that's crazy I've never heard of that one before you are you all see the fances are crazy yeah I got a girl I take care of my girl you feel me and she take care of herself as well I'm I support but um yeah I would say that's where most of my money goes the vacations the family my girl I I spread myself pretty thin yes you are all right Santio thank you for bringing us into the story let's go right away into our first section your income and your [Music] assets looking at your checking account right now you have a balance of $519 on your checking um okay with uh nine pages of transactions so you are a flaming money my friend coming and going yeah coming and going nothing stays yeah okay I see so that you mentioned you have acorns an investment accounts of about $500 this is good to see I like to see that not going to bring you much far but the behavior is good to to put on the side do you have anything else let's see yeah not just the acorns the cash oh cash you have cash yeah I have cash I have like $420 in cash okay at home at home any uh saving accounts um no I don't have a savings account right now I'm actually uh I just opened an emergency fund I'm planning on having my only savings account be my investments and then I want my I want my emergency fund to be my other savings account right now yeah let's write just conclude together your assets do you have a car I don't have a car you have any retirement funds I have $4,900 in retirement funds oh yeah yeah okay that's what like a 41k mhm a Pur is uh if you're a worker of the State my last job I was a case manager oh I see I yeah I worked as a case manager and I was a worker at the state and so I had a specific retirement fund specific specific to that it's called pers um and I don't plan on being a worker of the state again in the future so that leaves me with two options either leave it in the account yes or I can pull the money out and I can put it into um another investment account yeah exactly which don't touch it consider that this money doesn't exist right now there is no justification at 22 years old that you would have to pull Mia except if tomorrow you tell me you're going to be homeless that's the only thing yeah yeah that brings your total asset San Diego at 23 years old right now at 6,300 okay okay but uh you know just for your mindset because I don't want you to think that you have that cash account you are at about 1,430 that's tough huh that's after like everything i o no that's what you're saying that's your assets that's how much liquid you have oh that's like what I can pull out right now that's right now cash th000 something especially as you we think about your expenses and your rent and so on it's uh it's pretty steep but you're unemployed but you're still making a decent income yeah I'm unemployed right now um I'm I'm currently not making the income I will be very how much are you going to make I should be make currently 100% what's factual I'll be making $790 on paper um per per week per week every week 90 per week holy smokes but but that it should be closer to 9900 exactly 1,19 before taxes I opted to have the 10% taken out which is going to benefit me when it comes tax season so so let's put 900 per week right 900 per week should be once once I I figure out the issues I'm having with unemployment after this conversation probably by the time this video is out to the world it's going to be 900 a week yeah okay that brings your net income at 3,600 3,600 yeah okay looking at your annual salary of the government being unemployed it is 61,7 okay okay looking at the Medan United States 50% make less 50% make more for your age between 20 and 24 years old it is at 36,500 you're at 61700 but my friend unemployment is is only for 6 months and you have to show a bunch of work on the side you're not just cruising playing video games or fortnite or any of that crap oh man you was talking about my life before this that's another thing I think the uh my mom's husband I think a big effect he had on me was sometimes the teachers that you have in your life are either going to be the people that did the right thing or the people that did the wrong thing in my opinion are the best teachers um because they show you what not to do and when my mom's husband lost his job on Unemployment uh during the recession he kind of just sat at home and played Xbox and smoked weed all day and I I feel like that for me I I grew up in I don't even enjoy playing Xbox that's the one thing that I wish I wish I did I wish I can get on Xbox and kick it with my homies and you know talk to them on the headset and just play for hours on Call of Duty or Madden or something but I just don't got it in me and I think it's just seeing that and all the the stuff my mom talk you feel me you're piece ofo you don't do nothing you feel me you just sit sit on the couch and play Xbox all day so I was like man I can't let that be me and so uh I work hard to strive away from that but that's you know that's that's a big thing of my childhood that I feel like uh today is what kind of gots me in that mindset of I got it grind so I don't expect the unemployment to last you have to be looking for a job actively currently with my situation if with with the job I was working and the the amount of money I was making I have the ability to keep my unemployment and turn uh not not take certain positions unless they pay me a certain amount and and it prob I probably won't find a job that's in my pay range for my position because I was already making more than most people in my position so so let me ask you this do you have any education uh GED okay wow oh I see this is high school yeah it's high school yeah yeah it's an equivalency to a diploma okay so um yeah I know you you were you didn't go to the elementary I mean school out here in the US did you yeah no but that's pretty much high school it's pretty much the same yeah so high school um I would have graduated at 18 my senior year but I dropped out when I was 15 I got locked up when I was locked up when you mean like you got I got booked yeah I got booked I I was I was locked up for for a little bit when I was like 15 why 16 I stole a car oh my gosh yeah GTA yeah GTA you you said you don't play video games man we went from GT we went from GTA to the real life thing and it was quick but was it because of GTA yeah yeah yeah yeah Grand Theft Auto uh it got knocked down to it got knocked down to Joy writing oh I'm sorry okay so you were accused of GTA not the video game Sorry Sorry I was accused of real life GTA which is what the video games yeah okay so you got accused of grun theft AO mhm whoa and that's from what what did you I stole a car I was 15 I didn't have a car I wanted to go to a party and there was a car and I and you got not that then you got you got stopped they got come on man I was with my people I I honestly wasn't driving uh when we got stopped but we got pulled over we long story short I got bugged long story short um I only went in I think I mean a week and then trial a month after trial that is coming from this if you've not paid it right this comes with some depth afterwards I'm not going to I personally have no idea I've never looked into if I owe any debt when it shows on my on my credit report it will never show up so I've never really looked into it I feel like I don't understand what's going to happen if I don't pay it so I haven't really made an effort to pay it if I if I was educated and I knew the repercussions then I might do something about it but as far as I know you tickets yeah yeah you have youth tickets don't you oh yeah oh okay well we'll be speaking about this I got tiets speaking about this when uh oh my God in the depth aspect okay now that I know a little bit more about your income and assets let's move on to our next section Sano and let's do this your depth and your expenses how much do you pay for rent I pay 1,25 okay not too bad for sea does that include utilities does that include utilities yeah utilities is included in the total rent I split rent between a couple people but utilities is included in the is yours 1025 is me Max okay my friend look at your housing expense against your income it is at 28% we like it to be at 28 jackpot you're good to go but again here is because you're getting unemployment we don't know for how long I was making more before the unemployment that's right how much were you making uh 80k so you didn't save crap there's just a lot of things that kind of lined up back to back my girl for example lost her job her apartment she pays 2,000 so she's struggling you know I had to step in she took care of me when I was in the situation and I needed the help I slept on her couch you know when we met and so it's only right I return the favor and so on top of that um you know holidays like I told you has been coming up her birthday vacation I went to Puerto Rico for my birthday in July that's really where the bag went I dropped the bag in Puerto Rico yeah felt like Kevin gase man puer Rico Love G has a Millions on the bank too man hey but he don't get tired that's why he put the work in I'm trying to get there like I said when I'm as busy as you that's that's when I'll be in a good position when I'm flying to New Orleans right after this interview that's when I'll be in a good position yeah yeah flying in an hour okay I mean flying in a in a couple hours indeed guys we are cranking this is about cranking uh after about a 10hour days we are here in this interview because I want to speak with you and we're going to get you out of this mess huh come on let's do it let's move on do you own a car I don't own a car so no car expense okay I like to see that that brings Transportation expense to about zero you probably use public transportation don't you yeah okay but you also use a bunch of LIF huh yeah yeah Yes actually let's I I use lift when I'm late to a gig yeah how much do you think you spend on lift last last months I looked at all your every single of the 10 pag of your man last month I already know the beginning of the month had to be crazy cuz that was my girl's birthday yep and man I was doing everything to set that up man sugar D let's go how much I guess I'll say 500 not too bad 425 425 not bad 425 on LIF dude shoot man Seattle prices but blame it on them if I fly if I fly to Vegas man it's so much cheaper I don't know why lift is so expensive over no left is the same crap it's a pretty standard no no no excuse don't give me the BS of Vegas $425 on left and when you could be leveraging public transportation I mean I'm okay if maybe you're making a good income at $80,000 although I would potentially think about buying a car at the time but here with no money my friend you're spending a fortune on right right so you got to think about that though compare the uh compare the car no with the insurance to the to the 400 that's not comparable no no no no no no you can have Insurance my friend for about I mean something decent at your age hopefully you don't have too much criminal record or anything 150 170 not mean I got a criminal record if if I'm going to drive I'm playing paying whatever that insurance is SRS if if your license is suspended you know uh your license get suspended oh but that's why I that's why I don't have a car that's that's one of the things holding me back towards getting head I feel like is I can't get my license how did you get your license suspended GTA 15 years old uh no actually that's a lie that was years a lie that was a lie I was I was 13 when my license was suspended that's crazy you cannot even have a license at 13 CRA yeah I know so I was a minor in possession I got charged with a minor in possession and in Washington state if if you're caught with possession of any drug at the time this was marijuana which wasn't legalized at the time and so that automatically revoke my license privileges before I even had the opportunity to drive but dude that was 10 years ago that was 10 years ago by the time I was 15 I was caught a stolen car ever since then 10 years have gone by and I've been ticket after ticket after ticket ticket of what ticket of what uh driving on a suspended license no insurance dude every time you di D I mean it's over the course of five six years I mean five to six years I probably been caught a good five to six times so a good one time a year God and each time it Stacks up uh so I just made the decision I'm going to get rid of the car yeah I'm I'mma take the public transportation take the Len really just figure out I mean public transportation $425 LIF but I ain't going to hold you that's man that's if I was spending on lift every day it would be so much higher I I I would say 90% of my commutes are on a b okay uh looking at some of the rest of your expenses you know what let's go R right away into some of your expenses here so my friend everybody it with me I am broke and I still buy door Dash holy smokes come on dude please $27 $62 door Dash $17 okay what's going on you're lazy you can't walk you're taking the lift to go to buy food what's happening what's happening man sugar baby oh my gosh no it's it's your girlfriend no I mean yeah I I I typically don't get d dash for myself uh let's see I when I when I'm at my girl's crib M she's at least 2 miles from the nearest little grocery store whatever whatever at least a mile from the nearest bus doop so if I'm at her crib we just going to Door Dash if she you guys come cook like well that's what makes it tough is um she doesn't go to the grocery store she does but when you live so far away and she's struggling right now just getting to the grocery store and then getting to the crib you feel me from as far as she is you have to get a lift in order to get to the crib to get the groceries for the week unless you just get like a little gallon of milk and a box of cereal you feel me that's not worth going the 2our trip to get theoc St you can get delivery you can go through Costco delivery and get everything delivered for an extra coup what happens at her crib happens at her crib at my crib but dude at my crib uh yeah I I live right on the Avenue District so I'm a block away from all of the food there's no reason for me to Door Dash or lift ever anyway okay so um you are also pretty much going a lot of the time out fat Thursday oh that's my that's my demon that's my financial demon I eat out I eat food you have good salaries I can't deny that and actually that brings me right away to a a brief aparty guys I'm thinking about doing a net worth video uh but to do that I need your support because I want it to be something that comes in I would say 5,000 subscribers let's put this objective 5,000 subscribers and I will do a net worth I will open up the books everything from assets Investments salary everything if you want to see that we would love for your contribution in that way just subscribe to the channel and you will have access to so many other stories similar to San Diego and also it would help us tremendously now let's get back to the story if there is one thing that I'm nice that I'm happy to see is that at least you you're not spending money on coffee hallelujah hallelujah because uh holy smokes this is also one of America's disasters on the financial statement I really don't drink coffee on a daily basis I might drink coffee once a week it's it's really a a specialty thing for me it's not some consistent yeah all right let's look at one of your biggest expenses sugar baby and I see a bunch of cash up left right left every day she's draining you dry my friend huh how much do you think you spent on cash app last month on cash app on your sugar baby man it was it was her B it was her birthday it was baby's birthday yeah it was baby's birthday come on what you mean but that's just cash app that's just cash app so what you extending her cash for her birthday yeah of course that's what you do I hope she better send me some cash for my birthday so but no yeah I send her some cash for her birthday how much how much do you spend last year I'm sorry last month on your girlfriend while having 200 bucks on your account how much dude 500 similar $680 of cash apps wow that's more than the lift That's crazy dude look at this hey it could it could be a little it could be like cash transa like she could be might be throwing me like a little 100 for the 100 that I send her and cash you feel me it could I might need the cash for some excuse this who knows excuse this today how much are you saving per month it that might just not be the net is what I'm saying how much are you saving per month saving yeah um currently a th000 a month starting this month okay no but no no but that's that's looking at your statement you you didn't save $1,000 last month yeah you're right that was not last month let's look at our next Point San Diego your credit card depbt yeah oh man you have a max out credit card at 104% utilization $3,700 at an interest rate of 29.5% Santiago what the heck is going on with this freaking credit card right here the vacations yeah that Puerto Rico trip I ran it up as soon as I ran it up on that Puerto Rico trip that was the last month of a 18 month promotion was Zero interest so then that interest kicked in I completely forgot about the interest it kicked in started running up I'm focusing a lot of my effort on paying that that credit card down which is why I'm going to be saving less money okay so let's look at the briefly some of the rest of your expenses you have no pet no I don't got a pet okay entertainment um you have a little bit of expenses here and there nothing too bad no gas no insurance you don't spend much on kind of clothes and so on that's not too bad I see though that you were spending quite a bit on like about $150 a week on some type of Studio expenses what is this yeah I I make music and so I go to the Studio every week and I probably spend a good 150 on the studio every week um and that's just that's just my weekly recording that's my hobby that's I know but you need to make money to uh afford your hobby and your career on this H oh no most definitely but are you going to be able to reduce those expenses at the studio though oh that's the only expense that's not going to get touched that's that's the most important expense the the only way I'll reduce that expense is if I buy the equipment myself but I currently am working with a engineer that's real talented and I and I want to work with him so that's I would say that's the strong in in my personal opinion need for you yeah 100% [ __ ] hits the fan and you're going to and you lose your apartment you're still going to go to the studio 100% 100 you will live in the streets to go to the studio 100% I'll live in a car to live in the studio but the thing is is is I'll never live in the streets I if the [ __ ] hits the fan I I'll never be in a position where I'll be down bad because I'm I'm a I'm a hustler I grind okay looking at some of the rest of your expenses I'm going to record all of what you just just mentioned here I mean overall it's the same kind of crap how how do you spend $25 in gas when you don't have a car at Chevron man that's if it's not a lift it's asking somebody for a ride I might have so you're pretty much paying them back somehow yeah yeah just paying gas money in order to get to wherever I need to go if it's if it's a you know situation I hear you that's fair okay all right now that I have a good understanding of your finances and of the mess that you've put yourself in h it is time to move on to our next segment my friend which looks at the money case all right so at 23 years old you've completely ruin your credit what is your credit score 530 yep that's uh and you know why that's because he has 103% utilization on your credit card which is a killer even if you're making minimum payment having this has a tremendous impact on your crit score as a friendly reminder you want to have about 30% of less of credit utilization so if your credit limit is a th000 you want at the end of the month the statement to come in at less than 300 and pay four we don't like credit card debt and you know why because the interest is freaking rocket Bullet in Your Feet it's up there and stuck there yeah 29.5% crazy wow you know this a trick to Puerto Rico here that uh you just threw for your sugar baby no that was for myself that that was my birthday that was my birthday my actually my mom oh so that was your birthday no my mom my mom she wanted us all to go out there so she bought all our tickets um long story short that was a big family yeah and uh that was a costly trip yeah it was a costly trip you know why because uh right now with $3,700 of credit card deth this year how much do you think interest you're going to pay man 20 I I I'm terrible at math I'll let me tell you I'm going to make it easy no much more than that you kidding you think it's uh you think it's uh no more than that 500 more than that a th000 no oh wait Ley if I'm doing some math dude dude look at this 8 * 12 $656 look at this [ __ ] here this is how much you're going to spend on interest this year unless I pay back right now yeah unless you pay it back but it's not by wasting your money on crap on the side that you are right all right my friend as always you know this is the show I'm going to have you pick up that money because this is how much you're wasting here $658 my friend this is how much you are going to waste this year if you don't take care of your stuff rapidly this is an intervention yeah yeah yeah well yeah yeah yeah it's a call but it's a call to the bank we throwing that away yeah we throwing that away you throw that away yeah we throwing that away yeah every month you're throwing away money because of the freaking man is this real this is real I'm have to just that's right I'm have to keep this one right here all right we are back here with our friend Santiago who is carrying the money that going to pay to the banks on him hopefully you're not going to have to spend that money if you start taking action okay so let's think together about how we're going to approach this all right so looking at a recommendation this is the approach that I would take we are going to split your expenses and at home do the same it's very simple your needs if money if [ __ ] hits the fan you need that amount at minimum to live this is your rent this is a minimum food expenses if you have a pet minimum payment on your cards uh you know a little bit of personal care your phone you know this is barebone to live your want this is money if you you know have kind of discretionary income and the most important gold this is to save payb debt or invest right now your needs at 22 years old are at 1,674 yeah I know what you're making this face is because I did not include the studio as it okay yeah for now oh you didn't include a couple other budgets either in there like what it's not necessarily necessarity to the general public but like what oh man that marijuana expense that weed that weed expense no that's no count how much you spend on weed per month 400 500 four four to five what the freak are you kidding me dude let me let me let me get straight no freaking way 400 400 400 bucks on weed what you smoke a a qu quarter pound of quarter pound of a m yeah but look at this dude we've just discussed a little bit about your expenses this is where your 80 grand went sugar baby no I wasn't I wasn't smoking weed when I was working with them I wasn't smoking weed I I just now that you got you roll bonus that's pretty much what happened that's pretty much what happened no actually there's some things that we we can't discuss on your channel but I would I would say everything's open I would say I would say net I'm probably making more money than I'm spending on weed that makes sense oh so I'll be straight I see yeah so I you know what I'm saying I it's a situation where I could spend a lot of money and be okay because net is going to be straight you work at the Subway on this side yeah well you ever heard of Zips they burgers on the East Coast I mean on the east side I work for Zips you know what I'm saying and we that's what we do yeah okay let's come back to the game though looking at right now your needs and I'm again I'm not accounting for some of those BS expenses excluding all your sugar baby your left your payment some of your money you know out eating 1,674 that is 47% of your income which is nice to see it's nice to see you want it want yeah you want it to be below 50 so that's good and you know why it's because you don't have a car if you have a car you would have been screwed next Once I'm going to give you I'm going to give you 650 that's it 650 on the studio50 no 600 for the studio 50 on the on the rest today right now if you want to build yourself you're going to have to make decisions either you invest into some of the fun either you invest into your career either you invest into your girlfriend you can't just mix everything because at the end of the day you don't have the family backup yes you have a strong family that can help you out mentally but financially I don't think there is much from what you mentioned you are kind of holding seven siblings sorry six siblings with you come on dude like you have to show up as the examples for them seriously and like I understand that it is key for you to live that trajectory for your family and it is not be with all of that crappy spend on the side that you don't even realize there are nine pages of transactions dude it is crazy I want you to start having the mindset of a leader what does that mean that means that per month Santiago your number that I want you to put in your mind is 1,250 and that's that's for what 12200 that is to start paying back some of your debt invest or save but for you right now my friend you've put those $500 on the sign on acorns I would not put money on acorns anymore no don't do that until you start paying back your credit card yeah yeah that's what I realized timing in your situation is key okay and what I mean by that is because you've decided to put money on the side in a saving account when you have credit card debt well that doesn't work that's not financially and mathematically the route to go I know it may seem in concept but at home as well if you have credit card depth what I want you to do is put $500 on the side that's it this is just immediate money that you never going to touch for now it's just like you know something that is the the the lowest of the cautions is like immediate needs you need to do something immediately on the side I want you to put every single scent on that freaking credit card debt why because the interest that they are charging of almost 30% is unbeatable you can't fight that any good Investments on Wall Street Traders they average between 8 and 10% you are paying 30% think about this dude yeah it is awful do you have your credit card here today yeah you want to cut it or actually it's right here perfect Edie Bye Felicia all right see you okay that's it it's gone it's gone you will not touch this card until it's at zero do you take that commitment I I mean I I think if we're going to take this commitment we got to take it all the way cuz our our our younger fans or your younger fans they're going to know that c that carard don't mean nothing I'm going take it off the Apple pay give me I take it you know how to do it you got it so Apple pay wallet you go into your wallet where is it discover discover boom boom remove cards remove Basta Bella thank you come M yeah that's it you're done and uh and the numbers I don't even want you to think that you can catch that again right now discard should not at all be used any longer that's it until you paid back to zero no more credit card dep do you shake my hand I got you no joke no joke the only reason why I would accept someone to take credit card de and it's the only reason is if there is an emergency that is it and right now using a depth uh Avalanche approach I mean you only have one credit card but if you're at home and you have multiple credit cards you want to pay the credit card that has the highest interest first not the lowest amount the highest interest first mathematically gives you the best outcome it's going to take you 3 months that's it that is it how much do I got to pay 1,250 per month three months three months three months and your debt free now you're going to have your youth tickets and no yeah I can do that we making a good bag off the unemployment R it's not too much if I I could do that your recommendations are not too crazy you have six siblings that are looking for you okay they're looking they they are the impression that your father has had on you when he was playing Xbox is the same one that you're doing for the rest of your family so your actions are going to be reflected in their behavior you have to set the tone and shift the behavior that the family is going yeah that's you have this chance and this opportunity but it's going to be up to you and it's not by doing all this crap that you're setting it well actually you might negatively impact their behavior next thing what I would do after those three months is you put that money towards an emergency fund similar to what you were thinking and I like that thought process and you don't stop you still are on that 1,250 Target if not more if you are able to get yourself into a good job okay your target is going to be as a first shot $5,000 as an emergency fund and please never never touch that money against except for an emergency you trip to Puerto Rico holy Day gift that you're putting so much money into no no no you do something else on the side you figure it out you don't touch that money emergency fund if we think about this look short term right now in about 7 months you're going to be Deb free and you're going to have five grand on an emergency fun on top of that I am still allowing you to to continue your music you have absolutely nothing right now from everything that we've discussed together that may prevent you from doing this other than what other than you the LIF the extra stuff yeah just can it out but all of this is your decision you're making that decision every day so I'm going to call you in one month and I'm going to say this the next thing yeah my friend one month in one months shortterm commitment right now have you paid have you paid 1,250 of your credit card depth 1250 what are you going to tell me yeah look at this camera right here here and say I commit that I will make it happen I commit that I'm going to make it happen there is no thing that prevents you from doing this other than you you have a commitment what are your FAL words I think I I think this is one of those things that I've been thinking about a lot and trying to figure out how I could get some better you know guidance on my my my current situation I've been really focused on that and I think that it's cool to have a little plan given to me I'm excited to try it all right guys thank you very much for joining us on finance action please feel free to comment subscribe and see if San Diego has taken that commitment I know it will and I look forward to reading it in the followup until then guys we see you next time [Music] AO

Channel: Romain Faure

Views: 8,705

Keywords: Finance Action, Personal Finance, Debt Free Journey, Credit Card Debt, Romainfaure, Saving Money, Financial Goals, Car Loan, Dave Ramsey, Credit Card, Car Debt, Graham Stephan, BiggerPockets, Credit Cards, Romain Faure, Romaine Faure, Student Debt, Debt Free, Real Estate, Debt Snowball, Debt Payoff, Day Trading, Loan, how to pay off credit card debt fast, how to make money, financial education, debt, financial freedom, my financial friend, student loan forgiveness, bitcoin

Id: NNb3zfCjMwQ

Length: 42min 49sec (2569 seconds)

Published: Tue Jan 02 2024