[00:02] >> Hey Brian, I am so excited because today is going to be like a personal finance everything you need to know about how to get your finances on the right track so that you can start building wealth. >> I'm Brian, he's Bo, and we're financial
[00:17] advisors here to guide you on your journey to financial independence. And journey to financial independence. And with that, let's dive right in.
[00:30] >> Yeah, Brian, today we're going to go over the road map, the rules, and the resources that you need to be able to conquer this quest that you're on that we like to call your financial journey. >> Well, Bo, if you Anybody who watches
[00:44] movies, reads books, you know that there's the hero of the quest. >> And the quest is going to If you're going to be successful as the hero, you road map >> Like the like the yellow brick road.
[01:00] is going to be great. Or the rules >> Like the DeLorean must reach 88 mph. >> Okay, or the resources.
[01:12] >> Uh I'm assuming those are swords from Lord of the Rings. >> Oh, maybe it's lightsabers or swords. Yeah, you have to have the right road map, the right rules, the right resources in order to be able to build
[01:25] most efficient and most effective manner possible. >> Yes. So, if you're on the hero's journey, we want you to take an active role and know how to manage your money well so you really do You don't waste
[01:37] time, you don't waste your resources, you end up in the right place. No NPCs in the moneyverse for sure. So, the first thing we got to kick off with is building. >> Yeah, even if you're awful with money,
[01:52] interaction, what we want to let you know is that when it comes to building wealth, there are really three distinct ingredients that you need. And depending on where you are in your journey, you may have more or less of these
[02:06] circumstances. So let's talk about these three ingredients. The first one is discipline. Look, if you can never live on less than you make, you're not going to be on the hero's journey to building wealth. So practice discipline.
[02:21] >> When you practice that discipline, it creates a little bit of margin or money that you get to put to work. That's what you're exercising the discipline all for >> And the most valuable of the three ingredients is actually the time. If you
[02:36] are young enough and you can harness the power of compounding growth, you don't actually comes from your money working for you. Your army of dollar bills can brain, and even your hands. >> Now, here's a challenge for you. If you
[02:52] the first time that you're interacting with this idea, I want you to do this. paycheck, whether you're paid hourly, paid salary, whatever that is, I want you to look at what your net take-home pay was, whatever hit your checking
[03:06] account in this past pay period. And in this next pay period, I just want you to take 5% of that amount. That's it. Just take that amount that hit your checking, multiply it times 0.05, and I want you to put that in a
[03:18] high-yield savings account. So, if you're a median income earner right now a year, that means that you would be saving about $225 per month. I just want you this month put $225 into a high-yield savings account. You
[03:32] can go to bankrate.com, you can just Google high-yield savings account, pick one of those, and drop that 5% in there. If you can do that this month, and then next month or next pay period or next payroll cycle, you can do it again, and
[03:45] then you can do it a third time. I'm going to argue, if you can do that three times in in row, you have what it's take what it takes to be able to build >> I love that, Bo. If you can just give us 5% will change your life. And what I
[03:58] would really like is that respects those three ingredients to wealth is because you're you're you're really stretching out that discipline muscle, you're building the margin with that 5%, and now we're going to give you the road map
[04:11] with the financial order of operations. >> That's right. If you are new to this, if this is not familiar to you, go to moneyguy.com/resources and you can download your very free copy of what we have determined are the nine
[04:25] of what we have determined are the nine steps to help you know exactly what to >> look, if you're wondering, "Where is the origin story? How does this all work?" were in elementary school, when you were trying to learn the concepts, how do you
[04:39] get the right answer when you're solving math equations or math problems? If you didn't know PEMDAS, "Please excuse my dear Aunt Sally," you're never going to get to the right answer because to do math well, you have to do it in the
[04:52] right order of operation. Well, I remember thinking about it all exact same way." >> If you don't understand that you have to do money in the right order, you'll never get ahead. So, if you combine
[05:06] those three three ingredients to wealth building plus the financial order of operations, which gives you that orderly flow to maximize and build, you're going to be way ahead of your peers. >> So, let's start with step one. When it
[05:19] the very first thing we want you to do is we want you to have your highest deductible, whether it's your auto insurance, health insurance, homeowner's insurance, whatever that is, we want you to have that amount in liquid cash. And
[05:32] this comes before any sort of investing, before so any sort of debt repayment, because without a cash buffer, you run the risk of having to make desperate decisions when, not if, things go sideways.
[05:45] >> Bo alluded to it is that we want to keep you from making desperate decisions. And by the way, this this step right here will put you ahead of many of your peers already because if you looked at the research, 59% of Americans can't even
[05:58] come up with a thousand bucks. Guys, make sure you respect the foo and get step number one, cover your highest insurance deductible. Now, once you do exciting cuz then you get into step two, employer match. And this is literally,
[06:13] and I mean quite literally, free money that is available to you. All you have to do is reach out and grab it. Yeah, this is one, guys, it breaks our heart. When I find out that 25% of Americans, by the way, on other research reports
[06:26] I've seen this number uh beyond 30% cuz I think Vanguard had a study a few years ago that was over 30%. Guys, get that free money. If your employer is setting this money aside, they've already built it into your compensation. This is
[06:40] dollar for dollar or 50 cents on the dollar money that is going to accelerate understand how it works, what the formula is. Do I have to put in $1 to get $1 or I have to put in $5 to get $4? If you can understand how it works, you
[06:54] can make sure that you are actually taking advantage of all of all of that cuz if your employer's matching money, you're getting either a 50% or 100% rate of return on those dollars right out of the gate. So, you cannot
[07:09] turn away from that. You cannot avoid that step. And then, once you've done that, once you've capitalized on getting that free money, now you get to start taking care of some of the scary stuff. Now, you get to go to step three and pay
[07:21] lot of people cuz you you hear high interest debt, we immediately think of credit cards. And we know credit cards right now have interest rates over 20%. So, a lot of you are like, "How is this not step one?" Guys, that's how
[07:33] important having that highest insurance deductible is. That's how important getting 50 cents to 100% dollar for dollar match on your free money with your employer is. But yes, step three, we got to get the high interest debt
[07:46] taken care of because you'll never build wealth if you're paying 20 plus percent when you're just hoping in good investment years that you make over 10% >> We know that compound interest can be our absolute best ally or when used
[08:01] against it could be our fiercest adversary. Let's assume for a moment that you have $100 of margin every single month. If you were to just take that $100 a month and you were to invest it earning 8% interest on average over
[08:14] the course of 5 years, that $100 savings would turn into over $7300 in 60 months. Now, let's flip it and say that you still had $100 but instead of being able to save and invest that, you were satisfying credit card debt. And
[08:28] the average credit card balance right now in this country is a little over $6700. So if you had a $6700 credit card balance and you were paying $100 a month on that credit card balance, do you
[08:41] on that credit card balance, do you realize at a 23% interest rate after paying on it for 5 years, you would actually owe more money than you started with. You started with $6700 and now you owe $10,000
[08:55] on those credit cards even though you did not swipe one time. The difference in the utilization of those $100 a month is over $17,000 for you.
[09:10] decisions. Same $100 a month, just two distinct differences. You know, you have to ask yourself, am I builder or am I consumer? We want you to be on the side of building. Now for a lot of you, as you're tackling your high interest
[09:23] debt, you've heard about this and you're like, which one's for me? Do I go avalanche method or do I go snowball? Snowball's what Ramsey Solutions has made popular. That's where you take the smallest debt and you go for the the
[09:36] feel good of paying off that small debt and then as it get bigger and bigger, the interest rate is. You're basing it off the size of the debt. Avalanche is actually building looking at the
[09:49] they're saying, "Hey, let's go attack the highest interest rate first and then higher interest rates, we'll keep building this up to create the Here's the answer on which one is better.
[10:01] I don't care. The reality is know thyself. If you're a nerd and you're really a disciplined nerd, the avalanche you're going to be paying off the highest interest rate first. So, you're
[10:15] going to be avoiding or minimizing interest rate as much as possible. But, some people from a behavioral standpoint, this is what, you know, Dave and Ramsey Solutions, they're really leaning into, you need some small wins
[10:27] to get build it momentum so you stay on course. So, know thyself. If you need the small wins to keep you motivated and focus, do the snowball. That's A-okay. understand, "Hey, it would be really helpful to pay off the higher interest
[10:41] rate first." Go and attack it through the avalanche. I don't care which something happen. >> Now, don't mishear us. We are not anti-debt, but we are anti-high interest debt. That's why we want to get it off
[10:54] possible cuz then, once you get that gone, you get to move on to step four, emergency reserves. And this is where you get to build that buffer that when inevitably life's unknown unknowns come your way, if you have your emergency
[11:08] fund there, it will keep your life out of the ditch. But, the tragedy is we know that right now, 72% of Americans, almost three out of four of Americans, do not have a fully funded emergency.
[11:21] So, they are not ready for that medical bill, that layoff, that home repair, that car, whatever. Those things can derail their financial lives. You do not want to fall into that statistic. >> every one of us out there, more than
[11:34] likely, you're going to have something you didn't count on happen to you financially, whether it's losing a job, some big repair or expense you that comes across your life. You will have more peace of mind and clarity of mind
[11:47] if you have cash reserves and don't fall into access to cash or home equity lines you're going to pull off of your portfolio, we legitimately
[12:00] need you to have cash available to pull you out of emergency situations. Use the high yield savings accounts. Use the money market mutual funds. Don't skimp on this because you will get more peace of mind, you'll get more clarity,
[12:13] >> So, realistically, steps one through four about building a foundation. Then once you've done that, now you get to get into step five. This is where you begin contributing to and funding your tax-free investment accounts like your
[12:26] Roth IRAs and your HSAs, and this is where the wealth building journey begins to get really, really exciting. >> Now, we like the tax-free savings. The savings accounts. We love health health savings accounts cuz they're triple tax
[12:38] advantage. You get a deduction on the contribution, you get tax-deferred growth on anything you actually invest, and then if you pull it out for qualified medical expenses, it's completely tax-free. That's unheard of
[12:50] to think about you're getting all these tax benefits, but hear me when I when I tell you this, only 13% of you are even using health savings accounts or actually taking advantage of those the second and the third of the tax
[13:03] just using them as cash clearing accounts where you take the deduction and you pull the money out to reimburse yourself for medical expenses. The better choice, if you have the amount of liquidity that it requires to pay the
[13:16] expenses, but also to save and invest for the future, is to put that army of dollars to work and then pay yourself back in the future with your health >> Now, the only way you can actually put money into a health savings account is
[13:28] if you are participating in a high deductible insurance plan. So, you want to make sure that you're eligible to participate in HSA. If you're not, another great solution for you is a Roth IRA. And you don't have to have any
[13:40] special requirements to contribute to Roth other than your income has to be below a certain level to be able to fund that. In 2026, the annual contribution limit that you can put into a Roth is $7,500. So, you put the $7,500 in. You
[13:54] do not get a tax deduction this year, but those dollars grow tax deferred for the entire rest of your life until you go to pull them out. And so long as you pull them out after age 59 and a half, they are completely tax free forever.
[14:08] So, if you build up a million dollars in a Roth IRA, it is literally worth a million dollars to you cuz there is no more tax drag. By the way, Roth IRAs, young money millionaires, I'm telling you guys, this is your pathway. In my
[14:22] book, Millionaire Mission, I describe how I missed out on $10,000 of opportunity to invest in a Roth. I still have regrets. Don't sleep on that. Roth IRAs are going to be your first building block to understanding how you harness
[14:36] >> So, in step two of the financial order of operations, we began participating in accounts. And we kind of moved away from that. We get into step five, we fill up our tax free accounts. Now, we get to double back to our employer-sponsored
[14:50] plans. We get to double back to those 401(k)s, 403(b)s, 457s. And these are fantastic wealth building tools. Most millionaires actually reach millionaire status inside of their employer-sponsored retirement accounts.
[15:04] thresholds that you can contribute every year. If you think about for person under 50 years of age, you can fund up to $24,500. And most of these plans let you choose between traditional currently deductible
[15:18] or Roth where you don't get a deduction now, but it grows completely tax free. benefit. So, take advantage of your Roth. These things are so powerful usually giving you some type of matching
[15:32] contribution, you can shelter large sums of money. This is going to be how you of around 25%. >> It's unbelievable. And if you can begin maxing out your retirement plan, if you can begin putting the annual limits,
[15:47] whether you're under 50 or over 50 or even the super catch-up phase, it's lot of your army of dollar bills to work. So, steps one through four were about building the financial foundation. Steps five and six were really about
[16:02] what to do. And now we get into step seven, and that really answers the question, "Okay, why? Why am I building dollars in the way that I'm building them? And am I building them in the right way for the way that I'm
[16:14] ultimately going to use them?" And we call this step hyperaccumulation. and you say, "Hey, wait a minute. Let me hit pause on what I'm doing with my me protected." Exactly what Bo said, "Protected or to maximize the tax
[16:29] we say, "Wait a minute. I think I might retire sooner than my peers. I'm coming out of the workforce in my 50s, not late 60s. So, I'm going to need to have probably a bridge account." And you're like, "Wait a minute. I've been doing
[16:42] the index funds, but maybe I need to start focusing on how I invest in my retirement accounts different than my Roth accounts versus my after-tax accounts. There are more tax-efficient ways with the three buckets on how you
[16:55] do that." This is the step where we're going to really start thinking about how will we use this money? How do we maximize the structure and then go beyond even what we're doing with the 25% savings and investment rate.
[17:08] hyperaccumulation? Well, you've hit that threshold where you're saving 25% of your gross income for your future self. And you may ask the question, "Okay, well, why do I save 25%? What should I do What Why is that the number?" We know
[17:25] saving and investing until much later in life. And you can see, if you go look at life. And you can see, if you go look at our resource at moneyguy.com/resources, for most folks who don't start saving until they get into their early 30s or
[17:38] they get in their late 20s, it's really that 25% savings rate that allows them to build of assets that can replace their pre-retirement income by the time around 60 or 65. If you're someone who caught the bug earlier in life and you
[17:54] started saving in your early 20s, you may very well be ahead of the curve. But saving until later in life, until your mid-30s or even into your 40s, you may need to save 25%. But for most folks, most Americans, 25% savings is going to
[18:09] put you on the path to be able to do what you want, the way you want, on your you go look at somebody who waited until they were 30 years of age, typical American, then you go find out it nails,
[18:22] 25%. That's why, guys, if you're listening to this and you're under 30, you. Go check out our Go to moneyguy.com/resources. about you. If you're somebody who's catching this in your 40 years of age,
[18:37] don't panic, you're A-OK, too. You just have to put a little bit more weight on your shoulders and get ready to still harness the power of compounding growth. building towards financial independence, paying for your future self, where your
[18:51] dollars can work harder than you. Now, we get into step eight. And step eight is about covering those goals or doing those things that may exist before you get to financial independence. We call these things prepaid future expenses or
[19:05] >> Yeah, good time rock and roll name is abundance goals, because guess what? We anymore. Now, we can do all the things that you think that you're going to do to be able to spend more because look, if you're already funding things you
[19:20] your your expenses, you've got all your savings in an automated fashion. Now is know, just like when you get on the airplane they say, "Hey, put on your oxygen mask before you put it on the kids." You've taken care of yourself.
[19:34] It's A-OK to fund the kids college goals. It's A-OK to drive the nicer car. It's A-OK to go and get into rental real estate. It's okay to renovate. This is the time to really focus on what do you want to do with your money and how do
[19:49] >> All right, so we've paid for our future financial self. Now we've begun funding our goals that are pre-financial independence. Now we get into step nine. We get into the very end of the financial order of operations and this
[20:03] is more about de-risking and figuring out what do you want your life to ultimately look like. And remember, in step three we had satisfied all of the high interest debt that exists on our balance sheet, but now we truly want to
[20:15] be financially independent of all obligations and this is where if you so low interest debt. >> Yeah, and look, I don't mind sharing is you're part of the FIRE movement, I don't want you doing this until you're
[20:29] saving and investing at least 25% of your income, especially if you're between the ages of 30 to 45. Now, for those of you who are 45 and beyond, it's exactly what Bo said, there is a de-risking element that can come and I
[20:43] that's what I found in my own life. You know, I've shared it with you guys, I've been very transparent. I had a a mortgage at 2 and 1/2%. But when this thing got down where it was like 60, 70,000 dollars, I I started looking and
[20:58] I was like, yes, I love that interest rate, but man, would it be nice at my age beyond 50 to just have this paid for so that I don't have to worry about the monthly cash flow. I actually know I own this house and I've de-risked one more
[21:12] thing in my life. It's A-OK. There's a time and a place. There's the make wealth, and then there's the multiply wealth. That's why when you're in the make wealth, under 45 years of age, focus on the army of dollars. Now, if
[21:25] with you, of course, paying off debt. We don't love having debt, but I just want or place. If you're in the maintain wealth, that's probably from 45 all the that's when you're kind of in that gray zone and you have to look at your goals
[21:41] then multiply for sure. When you've won the game, you don't need to run up the scoreboard. Let's pay off even the low-interest debt because we want you to own your life. Obligations, which is what debt is, works against financial
[21:56] >> All right, we've laid out for you the road map. Nine steps of exactly what you let's shift and talk about the rules. Unfortunately, for you, we've been doing wealth building journeys and what we've seen across the thousands of clients
[22:12] that we get to serve at Abound Wealth, we have some pretty solid hard and fast rules about the way you should think about navigating your financial life and >> The first one, let's talk about financing the DeLorean. Look, some of
[22:27] workforce, we don't have the money to pay cash for preferred way to pay pay for a depreciating asset like vehicles, but when I was in my early 20s, I needed the JOB to start my wealth building journey.
[22:44] So, I had to go buy a reliable transportation. That's why we came up with 23/8. This is for somebody who needs to have reliable transportation. That's why it's not luxury vehicles. So, we want you to put down 20%. We don't
[22:57] want you to finance longer than 3 years. That's what's going to keep your wallet honest with your ego because you're not going to let somebody say, "Hey, well, if you finance this for 8 years, we can get your monthly payment down." No,
[23:10] we're not doing anything longer than 3 years and we're in making sure that our payments don't exceed 8% of our gross income. This way you can ensure also that your savings and investment rate is exceeding what your car payment is.
[23:26] >> And why does this rule exist? Well, right now we know that the median single right now we know that the median single income in this country is $45,140 according to the Federal Reserve. The average price of a new car is $49,220.
[23:41] So, if the average price of a new car is more than the average single income, that creates an environment where people can make unwise financial decisions. We don't want you to fall into that camp because frankly, when it comes to making
[23:53] purchases for most people, an automobile is one of the most expensive things that you're going to spend money on, but it's not the most expensive. The most going to spend money on in their lifetime is buying a home. And I think a
[24:07] trouble when it comes to home ownership and that's why we even have a rule for how to buy a home. We want you to follow the 3 5 25 rule. And what this says is that when it comes to down payment, you don't have to put 20% down. We're okay
[24:21] if you do a down payment as low as 3%. So long as you see yourself being in that home for at least 5 to 7 years and when you add up the total cost of your housing, the total cost does not exceed
[24:34] 25% of your gross income. If you can stay inside the 25% bounds and you know it's okay to have a smaller down payment. This is going to prevent you from being in that circumstance where all of the sudden you are house rich and
[24:49] life poor. And you may be asking, "Okay, well, how do I do the math? How can I know?" We actually have a great resource for you. Go go moneyguy.com/resources and check out our home buying calculator. You can put in your specific
[25:01] numbers, your specific variables, and figure out how much home can you over your skis. >> Yeah, I love how that rule allows us on your first purchase to be so much more flexible. That was one of my biggest
[25:14] because housing's not easy right now. So, it's definitely a measure twice, cut little bit more flexibility. We didn't have to change for this crazy new world. We always had it because we have no hypocrisy policy. We didn't put down 20%
[25:28] on our first houses. We I did put down 20% on all of the other homes I have purchased when I've upgraded. But, on that first one, I only put down I think I put it down around 5%. We want to pay it forward and let you know that's A-OK
[25:41] The same way, we also want you to think about education. Look, we live in a modern world now where education has all of this goodwill, but in some ways it can be a trap. If you don't go into college or any type of higher education
[25:57] with your eyes fully open, you might get sold a bad set of of of of opportunities. You'll you'll get sold a mirage that is just not tied to reality.
[26:09] So, we've tried to come up with how do we take this thing that's very noble like education, but ensure that you get the good side of it and not left holding the bag because institutions and others are not paying attention to what you
[26:23] should be paying for this this this noble thing to better yourself so you your shovel. We came up with the first-year financing rule. All this rule is so simple.
[26:35] Before you load up on student loan debt, I want you to ask yourself what is the likelihood of what I will make in my first-year salary. And then, whatever that salary is for your chosen profession, I want you to not run up
[26:48] student loan debt beyond that. Now, look, out there if you're a doctor, attorney, there are some obviously asterisks. But, for the majority of us that are going to school for that 4 to 5 years, I want you to use the first-year
[27:02] financing rule to keep yourself out of long-term debt with education. about student loans specifically is, did you know that right now one in four, 24% student loan debt, whether it be their own or their child's, do not anticipate
[27:19] ever fully paying off their loans. We know that 14% of all borrowers right now have a balance of greater than $50,000 in student loans. So, you have this debt that you don't think you're ever going to pay off. What that ultimately means
[27:33] be able to be financially independent. We just do not subscribe to that. We It's why we came up with the first-year financing rule, so you don't become one
[27:45] >> The next rule we want to go over is a lot of people come to us and say, "Hey, highs. You know, what should I be doing?" And if you saw it, the stock market's down
[27:59] in a bear market status. It's down 20%. What should I be doing?" Guys, here's the answer. Here's the rule that will guide you through all this. ABB. Always be buying, baby. Guys, if you
[28:11] wealth-building journey and you're not close to retirement, you're 5 years and beyond from retirement, I want you, no matter what's going on in the economy, if you're automatic for the people, if you've automated your investment policy
[28:26] and how you're doing things, you will be so protected by doing ABB. Because what it does is it takes the emotion. It's a system, instead of you trying to, right now and whether it's a good market, a bad market, a scary market, a
[28:41] protect you. >> All right, so you said frothy. kind of happens. >> One of the things we're walking through You may have noticed that there were two separate areas for debt. There was
[28:55] debt. One of them happens very early on in the financial order of operations, step three, and one of them happens very late at number at step number nine at the very end. So, the question becomes, how do I decide what is high-interest
[29:07] debt? The way that we went about discerning what's high-interest and what is our opportunity cost of money? How hard can our dollars be working for us? And if they can work harder for us somewhere else, then maybe we should put
[29:21] work the hardest for us paying off a debt, maybe they should pay off debt. And we know that how hard our dollars can work for us changes based on how old we are. So, we said, if you're someone in your 20s and you have student loans,
[29:34] in your 20s and you have student loans, and your student loans are below 6%, you prioritizing paying them off. Your money could likely work harder than that. But, prioritize them. In your 30s, the
[29:46] student loan number drops to 5%. In your 40s, it drops to 4%. When it comes to car loans, we want you to always subscribe to 23/8. So, even if you have very high-interest car loans, it still needs to sit inside the confines of
[29:59] 23/8. And if you've done 23/8 and you're someone in your 20s, even if you do have a car rate a car loan that's below 10%, but maybe it's 8%, 9%, we don't love that interest rate. But, we know it's inside of 36 months of being gone. So,
[30:13] we think it's okay follow follow through 23/8 and satisfy that. In your 30s, the number drops to 9% inside the 23/8 confines. In your 40s, it drops to 8%. And then when it comes to credit cards, no interest rate is acceptable for
[30:27] carrying a debt balance month over month. Using a credit card is totally fine. We say the credit card debt is okay, but credit card use is okay, but you do not ever want to carry credit card debt. So, if If have any interest
[30:41] rate at all on a credit card, even zero, pay it off month after month after month >> The only caveat, but we're not he knows what I'm going to say, on the car loans. you're one of these people that's got a lot of cash in your checking account or
[30:57] your emergency reserves, paying cash for vehicles is still the preferred method for paying for car loans. The only reason we have the high interest rate is your JOB so you can start your wealth-building journey.
[31:10] >> All right, so we said that debt had two areas in the financial order of operations, but so too does cash. You may have noticed that highest deductible was a cash part of the financial order of operation, and then step four is a
[31:23] one of the questions that people ask is, "Okay, well, how do I know? Do I need 3 months of living expenses or do I need 6 months?" Well, your unique circumstances will dictate. If you're someone who has high job security, maybe you're a dual
[31:37] income household, you have multiple income streams, you have a highly easily easy to replace job, or maybe you're single, no dependents, your lifestyle's flexible, you may be able to be able to err on the side of 3 months. But if it's
[31:50] new employment, or there are a lot of people depending on you, or you're single income household, then you might want to err on the side of a 6-month emergency fund. It's your unique variables that will dictate this, and
[32:03] make sure you revisit and review cuz this very much can change as you move through time. >> And then I'll cover the rule of how much should you save and invest for the future. Guys, we're all about investing
[32:15] 25% for retirement. Now, look, we take some flak for this. There's even been people who have created content saying, "That is too high." Now, I want to give you some caveats on this. If you make less than $200,000 as a
[32:27] couple or $100,000 as an individual, you get to count your employer match on that. For some of you, that can be 5 to 8% right there coming from your if you're like, why do these numbers when we say the 25%? We are talking
[32:41] about your employer plans, your IRAs, your health savings accounts, your pension contributions, your employers' money coming in, and so forth. I've problem that I think a lot of people don't realize is that we have a deferral
[32:55] problem on when people start saving. But, not deferred gratification problem. you look at the stats on when the typical American starts saving and investing for the future, it's 30 years of age. So, then if you know that data,
[33:10] and then you look at our how much did you save resource at moneyguy.com/resources, you'll see that it ties in perfectly. You'll see if a person retiring at age 60, not figuring out the wonderful world
[33:24] years of age, they need to save and invest somewhere between 24 to 26%. >> So, that's why guys, if you're listening this at 30, get it coming at 20, get
[33:36] you got to put a little bit more on your shoulders, but you're going to be okay. Just don't sleep on this information. >> The sooner you can get your savings rate up, the more flexibility you're going to give yourself later in life. And what we
[33:50] ultimately want our dollars to do for us is give us flexibility later on. That's why we want you saving and investing 25%. All right, Brian, this next one one's going to take no time at all. Credit card use, totally okay. If you're
[34:04] Credit card use, totally okay. If you're someone who wants to get rewards, you to have extended warranties, you just like the convenience of it, all of those perfectly fine with you using credit cards. What we are not okay with
[34:19] credit card debt >> AOK. Credit card debt, no way. >> Yep, we almost nailed that. That is right. We do not like you carrying credit card debt. If you're someone who carries a balance month over month
[34:33] could have done this in about 20 if 10 seconds. Credit card use is a-okay. way. That was horrible, but we'll we'll third time see if we can get it in there. Credit card rules, credit card
[34:48] debt a-okay, credit card Did I say debt instead of use? >> Credit card rules, credit card use a-okay. Credit card debt, no way. >> There we go. Third time's charm.
[35:03] we're talking about rules that you should follow, what I hope you've seen this idea that there's a better way to do money. And we think that the best way to do money is to follow the financial
[35:16] order of operations. It lets you understand and recognize, man, what dollar? And how do I know that my next dollar is going in the most effective and most efficient place possible? And if you can let the FOO be your guide,
[35:30] you're going to find that the journey to building wealth, well, it may not be easy, it's incredibly simple, and it does not have to be more complicated >> Yeah, I I just wish we covered so much. I feel like I almost have Jerry Reed in
[35:43] and we got to get some cords across the country. But that's where a lot of you you we've just we covered so much that a lot to do?" Cuz I feel like y'all just threw a book at me. You threw an entire system
[35:58] as well as all these rules. What can I do if I want to start off? Guys, the resources. I I I want to invite you to go to moneyguy.com/resources.
[36:14] tools, free downloads, all kind of calculators. This thing is going to become your favorite site on your wealth-building journey. Don't sleep on this opportunity. I want you to jump in, take that value from us cuz you'll
[36:28] remember who planted those seeds of your simple financial life that created so >> Yeah, we want you to do money better. So, if you're not subscribed, make sure always going to have brand new fresh content coming your way and make sure
[36:42] you go to the website moneyguy.com. Check out all of our resources. We have a tax guide. We have a net worth template. We have a home affordability checklist, a home affordability calculator. If you have a financial
[36:55] question, there's a good chance that we have a financial answer for you out at >> And when you have all the success, look, nobody ever talks about the negative becoming wealthy, but there is a little bit of a negative. Your simple life will
[37:08] get complex. And don't worry, you've just just because this is the first time you've ever gone through this, we've done this hundreds, now thousands of times. We'd love to help you on the journey, protect you from what you just
[37:20] don't know. And if you're interested in how do we get through this complex life that's where you can take the relationship to the next level, fulfill the abundance cycle, go to our website moneyguy.com, become a client, we'll
[37:35] leave the porch light on for you. This thing can work. We work with clients all across the country. I love that we get to keep paying it forward, giving you this value, helping you become successful. And then when you reach that
[37:47] level of success, you're just like, "What do I do now?" We'll be waiting for you. I'm your host Brian, joined by Mr. Bo, Money Guy team. Out.