Financial Advisors React to Wild Money Advice ft. @ErinTalksMoney

[00:02] We've got some wild and crazy clips, and as you can see, Aaron talks money. Aaron, and I can't wait to see what the internet has in store for us this

[00:17] >> What's the first piece of advice I give my kids about money and the last piece of advice and the advice I always give them? Don't spend it. Save it. Invest it. Let it compound. Market gives you 8 to 10%. Take 15% of every paycheck. I

[00:30] don't care how big it is or any gift granny gives you or anything you get on the side hustle and invest it. And then, by the time you're 65, eachi wawa bank even if you only have a salary of $65,000, the average salary. This is

[00:45] what the market gives you. Just don't buy crap you don't need. >> All [laughter] of it. >> Don't buy stuff you don't need to impress people whose opinions do not matter. Uh everything that comes in,

[00:59] save a little bit of that, put it to work, invest it, and building wealth is >> If you think other people are thinking about you, [music] they're not. They're stuff and what they're doing with their money. And also, Mr. Wonderful, kudos is

[01:11] like he has the best marketing. Who else can call themselves Mr. Wonderful? you putting on pants for this video. >> I don't wear pants anymore. I don't have any pants on right now. I have no pants on ever.

[01:24] And so, cuz I look spectacular [music] with this this tie and jacket on. >> He's like the the mullet of his attire and the fact that he's business up top >> seen this. >> Guys, [music] I that's how I film.

[01:38] >> Yes, I'm I'm dressed up from the waist up and then it's sweatpants, bare [laughter] feet. >> A HELOC when used for things that create more income and wealth can really produce far more profits for you, which

[01:52] you can then use down the road on >> Yeah, who needs shelter? wealth as quickly as possible is really to conserve your funds and availability of capital and delay gratification on lifestyle purchases.

[02:05] >> Okay. That was a solid part. [laughter] >> I like that part. He closes it strong. >> What was he suggesting that the strategy ought to be to like lever up as much as possible, borrow as much money as you can and put that money to work in order

[02:18] laying out? Okay. >> Yeah, I heard HELOC. build your wealth >> [music] your house that you live in. And that's

[02:33] assuming you even have a house. If you have a low interest rate and you got in pre-2020, then you've already kind of won a lot of the housing parts of it. Let's not go leverage that up to the to your eyeballs so that you can

[02:46] then get yourself in and jeopardize this great opportunity or or thing that you >> I want a place where I sleep, but I can also [music] say my dad has made every done this. >> He's done He pulled out money from his

[02:59] HELOC to go invest. >> in the stock market. I mean, he had sometimes where it was in early 2020, so it did well. Or early >> 2000s, let's get our decade right. But I mean, he also did it once to [music]

[03:12] mean, he also did it once to [music] invest in an IPO and it went kaput. So, jeopardize my shelter. >> It's all about risk. How much risk do reward that you might potentially receive worth the risk that you're

[03:25] risking losing your home, losing your shelter just is not worth it. >> Hey, I I'm in a good mood though. Can we just celebrate that he wasn't talking >> That's true. He was at least investing it.

[03:39] >> You look happier. >> Thanks. I've been spending beyond my >> [laughter] >> I I think people are still living on this with their credit cards, but no, don't. Don't do that. Just go boost your

[03:52] income. >> You are crazy if you think that the way the money that you have right now and just investing it in the stock market. actually doing is you're just letting other people get rich.

[04:05] >> The asset managers who manage your money, the banks that hold your capital. Because what do they do? They take your money and they do something with it proactively. So, they take your money and they take real risk with it. And I

[04:19] money, but also with yourself, you're never going to get wealthy. And so, you internet every single day if we talked about how to invest your first $10,000 to get to $100,000. You could make You could get a lot of views on that. Except

[04:34] it's totally pointless. And if what we really want to do is elevate people to money for all the things that they want in life, it's not done through That is the only way you make real money. Once you make real money, you can

[04:48] That's it. >> Okay, there were glimmers of truth in man, she was kind of wandering around in thing. What she said is if you are investing money, you're not making

[05:01] money, someone else is making money. That's true if all you're doing is see people do that. They put money in a savings account in a checking account. Well, the bank then goes and lends that money out, takes on risk, gets a rate of

[05:13] return. That's true, but that's not the way that investing works. She's way off on the way investing actually works. >> Yeah, if you're broke as a joke, um she's right. You have to sell your time for wages or earnings or go start a

[05:26] if you live on less than you make, you can turn that into wealth over the long term. But more than likely, you're going to want to invest the money so it can start working harder than you do with your brain and your hands. And I like

[05:40] you're instead of trying to beat the markets, you are the market. And all this great innovation that we see around us, you capitalize off of that. that's going to be the best thing [music] you can do, but put it in the

[05:53] market. Let investment compounding take over because otherwise, you're never 99% of the people make it. going to come back to this. What they're asking is how do they make a lot of

[06:06] the impending affordability crisis. And I feel like I now have to just remind an affordability crisis is not that we can't do things technological failure that we have prohibitively expensive housing,

[06:20] prohibitively expensive education. It's a policy failure. And we need to put it incredible pressure on policy makers to fix that. But when I tell kids that, then I say, "I also have bad news, which is what you study doesn't matter. There

[06:33] is a very low likelihood that your major will define your economic outcome unless And if you're going to go to a random college, you know, going to study anything, study something you love. Study something that you are

[06:47] that thing will get you a good job, but because that thing is intrinsically exciting to you, so that you can taste mastery, which is not something we ever challenge high schoolers to experience, or not often, I should say. Only if

[06:59] you're an elite student do you really taste what it is like to work very, very hard in pursuit of getting better. >> I disliked about everything they said. I and then I was not with him, and then I was with him, and then I was not with

[07:12] >> I'm going to be generous here because [music] I am in a career field that did not exist when I was in high school, when I was in college, and I didn't know been [music] out of high school 21 years now. So, I

[07:26] by the major you get. Granted, I went to school for business and then ultimately finance, but [music] I do think it's important you like what you do, so you do kind of approach it with a passion. With that said, like

[07:40] liberal arts versus engineering or liberal arts versus nursing, there's a >> He started this thing as he basically wanted to empower the mob. He told us it's not your fault. It's the government's fault. And that's the stuff

[07:54] that is going to put you in a situation where you don't feel like you have control in this world we live in. And I yeah, there are things like housing and cost of education for sure that are way more expensive than they should be. But

[08:07] I'm also here to tell you that we are living the greatest time to build wealth your passion, you're going to find yourself in the same affordability cow, I went and got this degree. I racked up tens of thousands, if not

[08:23] hundreds of thousands of debt for a job that I couldn't find, that couldn't pay or what would justify the degree that I got. And now because I'm in this passionate low-paid job, now I can't afford a house either. And so it's this

[08:36] vicious cycle that is going to repeat itself if you carry out his advice >> I have a flip [music] for that. You should find what you love about the job >> Yes. >> [laughter]

[08:49] >> Reasons you shouldn't feel guilty about spending money. first reason. And I I would say that that means that you can spend that how >> What does your future self think? >> Peter.

[09:04] >> That's it. >> There are loads of things to buy, aren't there? You spend money on other people all the time. So why not spend a little bit of moolah on yourself, eh? You deserve it. And that's why the next

[09:16] You deserve it. And that's why the next slide says you deserve it. Cuz you do. slide says you deserve it. Cuz you do. You do. We know you do. Come on. >> Was that really the video? >> I agree 100%. I agree with this. Full

[09:30] stop. Everything he said after you save 25% of your gross income for your future self. Once you do that, I agree totally. Go spend, do all the hard work. After you save a little bit of day for

[09:43] >> I would make one comment on the slide. There's loads of stuff to buy. Most of us are buying way more stuff than we need. [music] And I just I hate clutter. >> We don't need as much stuff as we have. >> So, I'm sitting here look I'm the old

[09:57] >> Yeah. >> I hear that there's this new phenomenon where people get adult beverages and then make PowerPoint presentations [music] for their friends. And like is that what I just witnessed? If that was

[10:10] presented at a content meeting, I'd be like how did this guy make it through >> I don't think this is a thing. >> What young people are you hanging out don't know this stuff either? >> I'm just saying I don't think it's a

[10:23] >> I don't think the younger generation is using PowerPoint. >> I can see Reba she's saying it's a thing. This is not a thing. I I hang out one PowerPoint socially. It's not a social thing that we do.

[10:35] >> You work at Taco Bell and have some extra cash lying around. Here's what not different companies and tries to find the perfect time to invest. He sometimes But in the long run he goes broke because it's impossible to time the

[10:50] market. But you make a smarter choice. You take your extra money and put some into a high yield savings account and the rest into index funds. These funds different stocks which gives you diversification and lower risk. You stop

[11:03] >> Follow Go Hard. >> That was great. I love it. there was like [laughter] a third camera that kind of showed you all the props all ever seen those kind of setup videos? I love that stuff.

[11:17] >> I have no notes. And I think most young people screw this up. They start trying >> [music] >> do sports betting or go participate in couch or whatever the thing may be to try to get some edge to go try to beat

[11:32] the market when if you will just do it the way that he described, it's almost inevitable to build wealth that way. >> Be the market, don't try to beat the market. I like the index funds. >> Recently, Business Insider did a video

[11:46] boldly titled "Don't Retire Early". >> that voice. common advice that we tend to hear is that you need to start saving for your future when you're younger. Start as early as possible. And I know in the

[11:59] we're beating a dead horse when we repeatedly say take a portion of every single paycheck, whether it's $50 or 10% of your pay or 20% of your pay and just

[12:11] set it aside, put it in investments and let it grow for your future. But we have to say it because common sense isn't always common practice. And a lot of times young people have the attitude of I'll just get to it eventually. I'll

[12:24] save when I make more. I don't have room in my budget right now. But so often we end up putting things off too long and then someday comes way quicker than we >> She's great. I love her. >> [laughter]

[12:38] >> It was It was great. I Again, I have I have no notes cuz I think far too often people want to save what's left over after then you're never going to have anything to save. That's why we want people to

[12:52] pay yourself first, save first, put the money in first and then spend what's much better position. >> Aaron, that B-roll is that you or did dollars? >> me. That's That's what I'm doing hanging

[13:04] we're trying we have so many dollar bills that we're trying to stuff in and the zipper gets in the [laughter] way. That was That was really That was We >> If people want to know more about what you create, including that video, where

[13:18] can you where can they go check you out? >> on YouTube, Aaron Talks Money. That's Don't go there. >> We believe there's a better way to do up. If you want to go check it out, moneyguy.com/resources.

[13:36] give you as much free stuff as we can and build your great big beautiful tomorrow. I'm your host Brian, joined by Bo, joined by Aaron. Money Guy out.