Clifton

Hey, guys. First, thanks for taking my call. Been listening to you guys for about a year now, and me and my wife are completely on board with this. We paid off about $230,000 in debt so far. Wow. Congratulations.

Hey, guys. First, thanks for taking my call. Been listening to you guys for about a year now, and me and my wife are completely on board with this. We paid off about $230,000 in debt so far. Wow. Congratulations.

Hey, guys. First, thanks for taking my call. Been listening to you guys for about a year now, and me and my wife are completely on board with this. We paid off about $230,000 in debt so far. Wow. Congratulations.

18 months.

18 months.

18 months.

No, no, no. My uncle retired from the family-owned business and passed ownership to me. It's a business that's been in business since 1965, and we do really well, and I've managed, just because I'm younger and can work harder, I've managed to triple the revenue from the last few years that he was getting in. Wow.

No, no, no. My uncle retired from the family-owned business and passed ownership to me. It's a business that's been in business since 1965, and we do really well, and I've managed, just because I'm younger and can work harder, I've managed to triple the revenue from the last few years that he was getting in. Wow.

No, no, no. My uncle retired from the family-owned business and passed ownership to me. It's a business that's been in business since 1965, and we do really well, and I've managed, just because I'm younger and can work harder, I've managed to triple the revenue from the last few years that he was getting in. Wow.

Incredible. Yeah, it's going really well. And my wife's a DNP, so she makes really good money, too. Oh, wow. And we live fairly crudely.

Incredible. Yeah, it's going really well. And my wife's a DNP, so she makes really good money, too. Oh, wow. And we live fairly crudely.

Incredible. Yeah, it's going really well. And my wife's a DNP, so she makes really good money, too. Oh, wow. And we live fairly crudely.

Right, but that does not get rid of the anxiety and stress I have with the debt that I have left, which is the reason for my call. We built a house two years ago. I'm not really concerned about that. We sold our old house and built this one on a property we bought. The business, though, as soon as I took over the business, I reformed as an LLC, got the S-election.

Right, but that does not get rid of the anxiety and stress I have with the debt that I have left, which is the reason for my call. We built a house two years ago. I'm not really concerned about that. We sold our old house and built this one on a property we bought. The business, though, as soon as I took over the business, I reformed as an LLC, got the S-election.

Right, but that does not get rid of the anxiety and stress I have with the debt that I have left, which is the reason for my call. We built a house two years ago. I'm not really concerned about that. We sold our old house and built this one on a property we bought. The business, though, as soon as I took over the business, I reformed as an LLC, got the S-election.

So that I'm not taxed so heavily and I pay myself a salary from that business, which of course is taxed as personal income. There was a loan that my uncle made to me, basically gave me the business, but I had to buy the complete inventory. And he was very, very nice to me and gave me that on a seven year loan at two and a half percent interest.

So that I'm not taxed so heavily and I pay myself a salary from that business, which of course is taxed as personal income. There was a loan that my uncle made to me, basically gave me the business, but I had to buy the complete inventory. And he was very, very nice to me and gave me that on a seven year loan at two and a half percent interest.

So that I'm not taxed so heavily and I pay myself a salary from that business, which of course is taxed as personal income. There was a loan that my uncle made to me, basically gave me the business, but I had to buy the complete inventory. And he was very, very nice to me and gave me that on a seven year loan at two and a half percent interest.

Um, and, and, uh, I've paid that down to about 240,000 is what I have left out on it and five years left to pay on it. Um, so this is my question though. Um, uh, I'm paying myself a salary. So I get that every week. The rest of the money, because we're an S, taxed as an S, is being kept in the business as retained earnings.

Um, and, and, uh, I've paid that down to about 240,000 is what I have left out on it and five years left to pay on it. Um, so this is my question though. Um, uh, I'm paying myself a salary. So I get that every week. The rest of the money, because we're an S, taxed as an S, is being kept in the business as retained earnings.

Um, and, and, uh, I've paid that down to about 240,000 is what I have left out on it and five years left to pay on it. Um, so this is my question though. Um, uh, I'm paying myself a salary. So I get that every week. The rest of the money, because we're an S, taxed as an S, is being kept in the business as retained earnings.

And it's pretty significant that the business, I think, retained earnings this year alone was close to 200 in retained earnings.

And it's pretty significant that the business, I think, retained earnings this year alone was close to 200 in retained earnings.

And it's pretty significant that the business, I think, retained earnings this year alone was close to 200 in retained earnings.

And this is the question I'm concerned about, just taking all of that money and paying the debt at once because then I'm kind of missing that safety that a business needs for a few months of operating expenses that things before. I'm kind of paranoid, right? Because I've had the business for two years and I'm concerned that at any moment work could dry up and I owe all this money, right?

And this is the question I'm concerned about, just taking all of that money and paying the debt at once because then I'm kind of missing that safety that a business needs for a few months of operating expenses that things before. I'm kind of paranoid, right? Because I've had the business for two years and I'm concerned that at any moment work could dry up and I owe all this money, right?

And this is the question I'm concerned about, just taking all of that money and paying the debt at once because then I'm kind of missing that safety that a business needs for a few months of operating expenses that things before. I'm kind of paranoid, right? Because I've had the business for two years and I'm concerned that at any moment work could dry up and I owe all this money, right?

No. The other debt I told you I paid for, we cut up our credit cards as soon as we started listening to you. We cut up our credit cards. We have no car notes. The only thing we have is the mortgage and the business debt.

No. The other debt I told you I paid for, we cut up our credit cards as soon as we started listening to you. We cut up our credit cards. We have no car notes. The only thing we have is the mortgage and the business debt.

No. The other debt I told you I paid for, we cut up our credit cards as soon as we started listening to you. We cut up our credit cards. We have no car notes. The only thing we have is the mortgage and the business debt.

As far as like for tax purposes?

As far as like for tax purposes?

As far as like for tax purposes?

Business starts January 1st each year.

Business starts January 1st each year.

Business starts January 1st each year.

I put all of the business money into that except for what I pay myself. I know.

I put all of the business money into that except for what I pay myself. I know.

I put all of the business money into that except for what I pay myself. I know.

No. No, it's done. Well, I guess you could say it's done daily. I'm not understanding the question. Okay, so here's my point. They go to a savings account for retained earnings. Yeah, so let me— Those are paid each month.

No. No, it's done. Well, I guess you could say it's done daily. I'm not understanding the question. Okay, so here's my point. They go to a savings account for retained earnings. Yeah, so let me— Those are paid each month.

No. No, it's done. Well, I guess you could say it's done daily. I'm not understanding the question. Okay, so here's my point. They go to a savings account for retained earnings. Yeah, so let me— Those are paid each month.

Probably $500,000. Okay. That costs a good sold and everything.

Probably $500,000. Okay. That costs a good sold and everything.

Probably $500,000. Okay. That costs a good sold and everything.

I pay myself, well, between me and my wife, it's right at $200,000.

I pay myself, well, between me and my wife, it's right at $200,000.

I pay myself, well, between me and my wife, it's right at $200,000.

I think so. Well, okay. My wife has a very small part of the debt we've paid off already with student loans from when she went back to school to get her doctorate. And I think I have $21,000 left to pay on that, but it'll be paid within 30 to 60 days.

I think so. Well, okay. My wife has a very small part of the debt we've paid off already with student loans from when she went back to school to get her doctorate. And I think I have $21,000 left to pay on that, but it'll be paid within 30 to 60 days.

I think so. Well, okay. My wife has a very small part of the debt we've paid off already with student loans from when she went back to school to get her doctorate. And I think I have $21,000 left to pay on that, but it'll be paid within 30 to 60 days.

That's my question. There's a difference here between personal expenses. I can begin taking the margin that we have in our personal budget and applying it to the debt I own the business to.

That's my question. There's a difference here between personal expenses. I can begin taking the margin that we have in our personal budget and applying it to the debt I own the business to.

That's my question. There's a difference here between personal expenses. I can begin taking the margin that we have in our personal budget and applying it to the debt I own the business to.