First and foremost, as you know, gotta know your four major numbers before you do any velocity banking, before you do any concept, any strategy as it relates to debt elimination or investing, you know these numbers. What's coming in, what's coming out, total debt and that net monthly cash flow, okay? I had an interesting conversation in the comment section on a particular video with, I believe, a subscriber, maybe a critic, and I wanna get you guys' feedback on this, okay? This kinda confused me. So I just wanna know I'm not crazy in the head here. So let's just say I have a situation I'm dealing with a client that they're generating, say, $7,500 a month. They're expenses, let's say, are $5,000, so you do the math that's pretty easy. What are they cash flowing? $2,500, okay? Now, this number, $5,000, there's still some confusion with people and it's understandable. When I'm getting your numbers, I want to know every single expense, ladies and gentlemen, so that we know what the true net cash flow is. What does that look like, okay? First, it's obviously the obvious stuff. You got debt payments. You got debt payments, don't separate it. That's part of your expense, right? Pretty easy. You have monthly bills, cost of living. Okay? These are like set bills, these don't typically change. Then you have your miscellaneous stuff where it's never the same number. The amount of money you spend on gas per month, the amount of money you spend on food per month, it's always fluctuating. So we like to get an average, right? That's where kind of budgeting comes into play where you're like, okay, here is the average, all right? When it comes to food in our household, let's just say you typically spend $600 a month, which means we don't want to go above the six. So if you're saying that you typically spend $600 a month on food, but then you're actually doing 610, 625, you're going to want to increase your average, right? Take the top number. So maybe it's really 650, right? Take that number and overestimate all of your miscellaneous bills, okay? Now what can be pretty interesting here, whether you're doing velocity banking or not, there's a lot of people in the United States that use credit cards to pay for things, right? So let's say you're typically running $2,000 on a credit card each and every month. That doesn't mean your expense now went to $7,000, right? So I was having like a back and forth discussion with someone in the comments, I'm like, where is this person coming from? I'm trying to really understand what it is that they're getting at. Maybe I need to explain things better in my videos. But if I'm telling you in a case study, this person spends $5,000 a month of which 2,000 of the five are bills that they're running on a credit card. That doesn't mean I go from $5,000 plus 2, which makes $7,000. No, it's $5,000 total of the $5,000 is for expenses. And then what happens is we, at the end of the month, you pay off in full, typically. You pay off that card in full with your income because it was money you were already going to spend, right? Now, let's take this same example here, same example, and let's say, okay, from this credit card, here's what some of you do, this is incorrect if you're doing this. You don't wanna do this, here's what some of you do. Let's say the credit limit, credit limit, on this credit card is $10,000, right? And you owe, so you already owe money on the card, right? Already owe money on the card of $7,000. Here's what some of you will do. You'll take your expenses and you'll run it on the card. So you owed seven, you're gonna run two so it'll increase to nine K, and then let's just say the monthly payment on 7,000 will do 1.5% of the balance. Let's just say the monthly payment on 7K owed is 105, right? So what can happen is we said that the 5,000 is total expense. Let's say we included that 105 payment in the 5. I think this is where there might be a confusion for some of you that watch, maybe, let me know, right? I never thought this to be confusing, but again, it's numbers and it can be confusing sometimes. So the monthly payment is 105, that is a separate expense from the what? The 2,000 that you're running bills. So where there might be a confusion when you're writing your numbers down, you're saying, hey, I owe seven on this card. This is the minimum monthly payment, but I'm paying 2,000 to my card each month, right? Because you ran the card 2K and then you pay 2K, but you're forgetting to also add that monthly payment because that's the principal now to actually pay it down. So I've jumped on calls with people before where they were doing this and I'm like, they thought they were doing velocity banking because they're like, oh, well, I'm running my bills on this card and I'll be able to pay it down. I'm like, no, you originally owed 7,000. The 7,000 is the debt part. The 2K of bills is the expense part, but you're adding it to a debt that's already charging you an interest rate. You don't wanna do that. You're getting beat up. You'd be better off with a credit card with a zero balance, right? You'd be better off with a zero balance credit card and then running bills on that card, paying it off each and every month for the cash back rewards. The only way this works is if you apply this. Now here's where it can get a little more confusing. The net cash flow is 2,500, let's just say. That's net cash flow. This 105 is the monthly payment. So there's principle and interest in that 105. Where I was having a discussion with this person in the comments, they were conflating the 105 in the cash flow. And they were telling me, Denzel, that why are you saying their cash flow is this? The numbers are wrong and I'm like, no, no, this is separate. This 105 came from here, not the cash flow. So it's really to properly do this correctly, to properly do this correctly at 7,000 owed, you would need to be paying in to plus 2005 plus 105, all right? So 2,000 plus 2,500, 2,500 plus 2,000 plus 105. So technically you should, this is how much is going in to the card, 46.05 and then only two is coming out, which is why when doing velocity banking, 7,000, this is a velocity bank, you would have credit card now, right? 7,000 minus 46.05 plus 2,000 came out. The balance is now less, from 7 to 4. Why this is faster? She watched this. That's 4,395, all right? 4,395. That's what the balance went down to. 7,000 minus cash flow minus the payment 105. Since L, it's the same thing as making extra payments. No, it's not. Then L, you just did it. You got the same numbers, right? You just showed 7,000, so much I owe, and at the end of the month or on the due date, I pay the 105 monthly payment and I add my cash flow. And I get your number. What the heck is the difference? Okay, what you did an account for here is the interest cost for not paying into the card early. See, my money, my 4,605 went into the card earlier than your 2,505. Technically speaking, this strategy only paid in 2,605. Total in. Here, total in was 4,605. So what will happen is my borrowing costs will be less, right? It'll be less. So instead of being at 4,395, because I'm getting what cashback rewards on the 2000, say I'm getting 2.5% cashback, it's $50. So you got a minus 50 bucks, right? And then you minus the additional interest savings of having money sit in the card for a longer period of time than waiting to make the payment. So do they get the same results roughly, similar results? Yes, I just come out ahead of you. Just a tad bit faster, right? In that compound, that's $50 every month for a hour long, takes me to get out of debt. Well, you have to understand, same payment, 105, 105, right? Same monthly payment. Their 105 interest is higher than my 105. My 105 interest cost will be less. That is proper etiquette when it comes to using a credit card that you already have an existing debt on to do velocity banking. What would be incorrect is when you are not paying that additional monthly payment and you're just running bills on the card and what's happening is you're never paying off the original debt. So you're stuck, right? You're never really paying it off. And then if there's a discrepancy in the numbers, because you didn't, you know, provide the numbers accurately and effectively, then that's where you're gonna have your issue, right? So I hope that was clear. That's a big tip right there. To be continued