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You say this when you're being a smug prick and don't want to help someone else.
'I'm good bud' when I was asked to help move his couch and I was already eating pizza.
'I'm good bud' when my friend cried and I just said 'I'm good bud' and walked away.
'I'm good bud' when I had to do his math homework for him and he still said 'I'm good bud'.