You knew it’s 50%, right?
Yeah. Yeah.
Why did you think that’s okay?
You’re what, your parents.
My mom helped me. So you’re not independent.
Why did you apply and say you’re independent?
Well, I just.
I just wanted to be closer.
I just want to be closer to my work and.
Well, yes,
we know that you said that.
That has nothing to do with the question
I said. I don’t know,
I just. I just wanted to live in a nice place.
That still
absolutely does not even come close to answering the question I asked.
Why did you say you were independent when you,
your parents are paying for rent?
I saw accounts transfer in $1,048.
Is that them? Most likely.
I don’t mean. Okay, really?
So you’re not independent?
Yeah, I’m not.
But you think you are? Well,
that’s what I’m saying. Like, I’m.
Most of the stuff like, that comes like.
Like my bills and all that.
Like my phone Bill, my cape,
like, everything.
I pay it for that by myself.
Hmm. I don’t know.
They transferred in a fourth of your amount that you had brought in.
A fourth? 25% ish.
Really? It’s a large amount.
Oh, yeah.
Let’s say you bring in $3,000,
$1,000 comes in out of the $4,000.
That would be 25%. I guess I, I,
I have, like,
a problem. I guess I,
I didn’t really factor in,
like, all the times I was, like,
going and get food, Or something after work
or grabbing like lunch with a friend on the weekend.
So your parents are subsidizing that?
Do they know they’re subsidizing that?
Do they know they’re subsidizing you and walking to the bar?
No, I mean,
sometimes I still end up driving like to the bars
cause it’s like a pretty good area.
Oh, good, good, good.
We spend 50% of our income to be able to walk to the bars,
but yet we still drive. It’s just.
I don’t know. And if there’s anything that’s good to drive to,
it’s a bar. Where you drink?
Well, yeah, I.
I mean, I don’t go crazy,
I don’t go like super crazy,
but I like, whenever I’m with friends,
I’m usually the one driving.
Um, I live closer to town than they do,
so it’s just more convenient.
Okay. I don’t know,
I just. I just.
I don’t know. I’m that kind of friend.
I just go pick people up or I’ll just.
I’ll spot them or. How much you just spend going out to eat, man?
Probably like three, 4 hundred,
I wanna say. I don’t know if that’s right,
but you overshot that one.
Two hundred twenty five dollars and sixty three cents. 2:25,
you know? Does your parents know they’re subsidizing that?
No, they.
As far as they. What do you think?
They think it’s just rent.
What do you think they would think if they knew that?
They probably wouldn’t be Helping me out as much, honestly.
And it’s being kind of deceitful.
No. That you’re not telling them
when they’re giving a good chunk of money to you.
Yeah. Is it not a form of line?
Well, no.
I mean, I. They.
My parents are willing to help me.
They. I mean,
I have. Right.
But they think they’re helping,
but really they’re just buying fast food.
Well, I mean,
they’re also helping for, like,
a portion. I mean,
there was miscellaneous bullshit.
That’s just other stuff that doesn’t matter.
Other stuff that doesn’t matter.
That was $817. That’s basically what they give you.
I honestly think, in this, uh,
conversation, you should ring them up and tell them. Really?
If you’re actually here to take accountability for your life,
absolutely. Because you’re around,
you’re around. And guess what?
She wants to pull out of her 4:01 k to subsidize her.
That wasn’t my idea. I. My.
My parents were like, maybe this will help you.
I was a little on the fence,
but I just kind of, like,
follow their advice. I didn’t really know I had that much in my 4:01 k.
So instead of not spending $1,200 on bullshit combined,
we’re gonna. With our retirement. Oh,
we could just not spend $1,200 on bullshit.
Well, or we could retire.
Hmm. Hmm. Interesting.
Okay. Well, okay.
I thought. I thought it was a good decision.
Mean, they kind of gave me advice,
but I took it. I went And made the phone call.
I was like, okay,
this money will help me pay off the debts that I have.
What, is this already done?
Yeah, I might.
The coming in the mail. No,
I closed the account. No.
How much did you have saved up?
It was okay. Well,
before they took all the fees and the taxes and stuff,
it was like 10,000. 10,000 at 24?
You were on your way. You were on your way, dude.
Let’s say you. You opened up a Moo Moo account
where I just buy different stocks and stuff like that.
Let’s just say that. Right.
Just for an example,
how much were you setting this out on a monthly basis?
Setting aside? Yeah.
What was the percentage? Um,
how’d you get to that 10,000?
Like, how much are you setting aside on a monthly basis?
I honestly don’t know. Like my, my.
My job kind of set that up for me.
They like invested in okay stuff for me.
Fine, let’s say it’s in.
Let’s just do 8% return annually.
Okay, let’s just say you’re setting aside a hundred bucks a month.
Even hundred? No,
let’s say 200 bucks. Cause
I think you had to have been about 200 bucks
to catch up to about $10,000.
Yeah. The initial amount of $10,000.
You put in 200 bucks over the next 36 years.
So you can take it out at 60. Uh,
tax and penalty? Uh,
well, penalty free if it’s Roth.
And it would also be tax free.
That $10,000 plus the $200 a month and 8% return on average
would have gotten you to $675,000.
But instead we’re taking it out.
Instead we’re taking it out
so we can continue to spend $1,200 a month on bull,
so we can spend 50% of our net on rent.
So that we can walk to bars that we end up driving to.
And here’s. Here is my thought process behind that. I,
that one that I closed was from like a former, like,
job that I had. I had.
It was $10,000 going to your retirement.
That’s a great start. I know,
but I have, I have one right now with my current employer,
so I don’t think it was a big deal.
It’s like 3,000. Yeah.
You, you,
you cut it by what? But I have 80%.
I have time. I have time to get.
No, no, no, no.
That’s the thing. That’s the thing.
You just gave up time that achieved it
because that 8% continued to compound.
Cause that 8% gets. That gets added onto,
that 10,000 turns into 800 bucks that year.
Then all of a sudden, now we’re at 10,800.
And it compounds every time.
On top of that, it just gets bigger and bigger and bigger and bigger.
But you taking that out, you’ve gotten rid of time.
Because every single year you exist,
you’re getting closer and closer to retirement.
But you’ve taken that Out.
And now you’ve taken away the best asset you can have in your 20s,
which is literally time to let your money grow.
You’ve done that. So again,
you can subsidize making terrible choices.
But let’s get into your finances
because they need a little more context,
cause I gotta remember we are doing a show here.
It’s not just conversation between us.
OK, self assess.
Where do you think you are finances?
Zero being the absolute worst,
10 being the absolute best.
Where are you on that scale?
I think I’m at like a two. OK.