I'm a Teen Dad Making 6 Figures and Drowning In Debt

Zander shops all the top term insurance companies to save you money. Get started at zander.com. I am 19 years old. I Have an eight-month-old daughter and a fiance. I'm making about ten to eleven thousand a month consistently for the last eight months Doing what a question for you today is Pressure washing and assure your window clean Wow by yourself Yes, sir fully by myself I thought about hiring technicians I'm trying to go as long as I came without hiring people, but my question for you is how do I get out of debt? I'm 19 With the money I'm making my problem is I don't feel like we're seeing the money that I'm bringing in I have about $58,000 in debt that is from two cars $1,600 in credit cards and a $3,500 personal loan Okay It's part of the reason you're not seeing the money you're bringing in because you're not subtracting expenses out of What people are paying you or I mean, do you have it separated in the right ways? Yes, ma'am. I think the problem is not a budget I watch you guys a lot and I've been talking a lot to the fiance. We are on a complete Scattered budget. Okay, we know what the bills are and then it's constantly, you know going to Walmart buying this buying that Eating out seven times a week her or both of you both of us. Okay Well, let's stop for a second And let's make sure we've got some basic structures in place That the statistically tell us you have a higher probability of winning. You have a baby You're 19 and you have a fiance When is the wedding scheduled? The wedding is scheduled at the end of this year and we're not looking to spend a lot of money on the wedding Honestly, I think what she wants to do is just go to the courthouse get married like that I don't maybe have like a little get-together because how about next week? It's a court. How about next week now next week? Wonderful statistically She and you have a higher probability of your marriage working your relationship working and your wealth building working and your careers Taking off as a married couple than you do is to shacking up thinking there's a courthouse five months in the future Okay, so I'm just giving you the date the data points and And so if you if you were my little brother, that's what I would tell you to do first this weekend We're having a wedding and a get-together. Okay now then let's move on with your business You are kicking butt because you are not afraid of hard work and you're showing up on time and you're pricing yourself reasonably I know all of this because you're making freaking hundred and twenty hundred thirty thousand dollars a year as a pressure washer Buy your freaking self. You're incredibly go very proud of you Not easy. I wake up about eight o'clock. You just get somebody taught you how to work young man And I'm proud of whoever that was you are a good young man This kid has a good dad and you're gonna have a good future. All right now Here's how we run a business first thing is if you do you have a separate checking account for the business? There are basics every family needs food shelter transportation and term life insurance term life is simple If you pass away, it pays money to your family so they can keep paying the bills Protecting the people you love is part of winning with money. And when you're ready to do that go with who I trust Zander insurance Zander shops top companies to find the right coverage at the best price and they've earned my Recommendation for nearly 30 years go to zander.com today. Do you have a separate checking account for the business? No, sir. My dad told me that I need to start doing that. Yeah, you need to do that today Go down to the bank. You don't have to have anything except your social security number It's called a DBA account a doing business as account. It's a Skylar so-and-so DBA doing business as Skylar's pressure washing or whatever the name of your company is. It's all it's got to be Okay, then here's how the math works. It's going to help you get organized 100% not a dime less of the money that you get from a customer for doing a job goes into only the business account Got it Got it. Now. What about just a minute? Let me finish. I'll walk you through it and then you can ask okay Then the second thing is nothing comes out of the business account except you and the business expenses You don't buy groceries or lights or car payments out of the business account. I'm gonna get there in a minute Okay, so what expenses do you have at the pressure washing company? You have gasoline you have to buy for your pressure washer and your truck that pulls it, right? Yes, sir. What other expenses do you have? Chemicals, you know, like mop squeegees, right? You write a check for those or use the business debit card for those you don't buy anything else out of the account So in business your revenue minus your expenses equals profit Follow me. Yes, sir. Profit this month was nine fives. Good perfect Now when you take if you want to leave a little bit in there for next month's expenses, that's fine so when we take 8,500 out of that account or $8,000 out of that account. We leave a thousand bucks or something in there We don't want too much in that account, but we're nothing enough in there run the business And we take $8,000 home. We write a check to Skylar that he's gonna deposit in his personal account. Oh wait taxes have to come out and Taxes on a self-employed business your size are about a fourth of your net profit So on $8,000 that's going to be $2,000 so you write a $6,000 check you put in your personal account and a $2,000 check you set in a savings account for your quarterly Estimates remember this and go back and watch it on YouTube your quarterly estimates have to be filed on this and you have to file And pay your income taxes quarterly and they're going to be about 25% of your profit So now you're not going to get behind with stinking IRS and mess up this whole thing now I got $6,000 in my account to now start working on $58,000 worth of debt now we sit down and say all right. I got a budget this month of $6,000 and we put that in every dollar. Yeah, I think that was your problem having one account you and your fiance were seeing Oh my gosh, there's ten twelve thousand dollars in here. We can eat out if we want Yeah, we can do whatever we want can't eat out unless you sell both cars Uh-huh, and now that Dave has separated that for you I think you guys are gonna have a more realistic approach that combined with every dollar now I just want to know you said you have two cars. We might be able to clear some of this out really fast What are the cars worth? Yes, I have a truck. That's why I use for the business Not being smart. I was 18 when I bought it not being smart I saw it at the lot sign the papers paid 32 for it and the Kelly blue book is 16 5 Yeah, and it has a salvage pedal. Yes. Okay. What about the other one? The other is her car it's a little Volkswagen it's repaid 24 or 20 That's a lot of cars You mean for what you're earning you're right on the line, but it sounds like you're interested in being debt-free So I'd work on either knocking these out or selling off at least one of them Yeah, I'd get them so I'd get them paid off very very quickly. Here's the good news You guys aren't used to making this kind of money So quit spending You know, you're just spending like you're in Congress man so your dad's right get your every dollar budget out write it down put everything down and Dude, you're way too smart to be acting this way All right, and so you're way too good at the other parts of this so we give every dollar a name six thousand dollars at the top every dollar has an assignment and Don't go out to eat again She gets to cook My last question is should I tackle every extra dollar on payments? Yes, I just bite the bullet and get rid of the truck of the car If you might get rid of the car, but let's bite Let's just attack the debt for a month or two and see how it feels After fighting it and fighting it and not going out to eat and not going on vacation and not doing anything Except paying off debt because you've made a mess That you can clean up fast if you lean into it If you screw around with it, you're gonna be looking like this when you're 35, but you don't want to do that The good news is for your truck since it is your business truck. You could use your business money to pay it off Yeah, no, I would just I would just pay it off out. It's a personal sign for personally. It's just started this business It's not a yeah. Yeah, I just knock it out. Let's just knock it out. It's not a Okay, you can't there's nothing you can write off on it Anyway at this stage except maybe depreciate it and that's might be a nightmare. So Now I let's just lean into this thing and take $6,000 $7,000 $8,000 a month after taxes and let's attack the 58,000 how fast can that be gone crap man six or eight months you're done, but you live on nothing, dude Xander is the best place to find term life insurance to protect your family visit Xander comm for quotes today