Why Becoming a Millionaire Is Easier Than Ever!

why it's easier than ever to become a millionaire yeah brian i'm real you know what i was about to say what i'm really excited about this show but i do get really excited about every one of our q a shows but this one i think is unique because i want to start off it seems like there's a lot of just negativity in the world right now 2020 seems like just a negativity type year i'm excited because this is not a negativity jump off this is not a sad thing this should be an excited get motivated go run through the wall go do it type start well i love because this is something i think if you want to talk about the brand the theme of the money guy show i've always wanted this to be that beacon you know think about the lighthouse you're out there and you're in choppy waters and you're looking for something that says hey which direction should i take my personal finances so that actually am taking it to the next level and i've always tried to be motivational now we're not i mean i'm not the type of coach that just gets you all about the good feelings because we throw tons of analytics as you as well and today's going to be no exception before we start taking your questions with the question and answers part of this um i want to kind of talk about you brought this to me we have you know friends that we love to follow charter does great research and you brought this to me and you said i think we ought to do a show and then guys you're going to get to hear a little behind the scenes of how i've added stuff that came to me just last night and how these guys fortunately let me kind of run it loose like that look when when brian has ideas we just let it roll it go here no i have to fight for it i feel like i'm in there here's what i think is really interesting there was a breakdown looking at the hundred wealthiest people on earth and they kind of did it in sort of this bubble format and they did it by country so how many of the wealthiest people are in germany or china or usa and then what's really interesting is the size the diameter of the bubble shows how grand their net worth is so i just thought this was kind of interesting looking that like there are concentrated chunks of where wealthy people exist especially if you're talking about the hundred most wealthy and it's no surprise united states has the highest number on the list of most wealthy folks yeah i think we are the bread basket of innovation in a lot of ways i mean i think that is a an american pride point that a lot of the big developments and technology and health care and other things are coming out of the united states but this is not just about billionaires because i look all in society today all over financial media there's lots of stuff that's trying to nudge you into looking at these successes even though look we all love our smartphones of course we all love the technology because a lot of these folks are innovators in the technology side of things but i feel like there is this voice that's whispering right here hey you shouldn't like those guys because they're successful for those gals because they're successful no the reality is is that we should try to figure out is there some teachable moment here is there some opportunity that can do this for myself and we wanted to talk about because you guys know we put it right here on the shelf the million millionaire next door changed my life in 1996 when i got it so when you showed me this stat we immediately talked about i said let's talk about that ever expanding pizza pie that i talk about because look i grew up in a household where we didn't have money my parents told me the only way people become rich is typically because you know somebody cheated on their taxes they made money off of somebody else and these are these are they inherited inherited you know their opportunity was just better than mine and that is just not where the reality of wealth creation occurs so i want to talk about how the millionaires that were in 1997 that's the data point that fte daniel was able to go find for us how many millionaires were there in 2010 how many millionaires were there in 2018 which was the last year we were able to pull data and i think you're going to see that this concept i talk about with the ever expanding pizza pie it's not that somebody has to lose for you to make your first million you can make your first million by just doing what we talk about when we especially when we talk about the financial order of operations and other things that are part of the money guy content yeah and what i think is wonderful is we ask daniel all the time hey do this thing and then it comes back even better than we sort of expected so we said hey give us these three data points and he said you know what guys i'll see that and i'll raise you i'll show you how many millionaires have actually been every year from 1997 all the way through present day and this is what i think is remarkable in 1997 which is the year after millionaire next door came out right exactly right there were 5.3 million millionaires in the united states well fast forward to 2010 and there were 8.4 million millionaires then fast forward all the way until 2018 which is the last year that this data was collected there were almost 12 million millionaires in this country it's more than doubled since 1997. well and look the data supports this first of all i want to clarify this excludes their personal residence so for you that think that hey they're only millionaires because their house this data that daniel went out there and found actually excludes the personal excludes the personal residence but listen to this step 1997 it was 5.2 percent of the households in america okay in 2010 it was 7.1 percent of u.s houses all households and then in 2018 it's 9.2 percent of households here's what gets me so excited thinking about that it's not an exclusive club that percentage of american households is getting bigger and bigger but it's not something that's unattainable it's not something where your last name has to be rockefeller or your last name has to be vanderbilt to be in the club it's an attainable goal it's something available to everyone out there if there's a few things that they can figure out well we've talked about it and this is the part it's a it's an exciting stat but also a sad stat in the fact that wealth is essentially always going through a cycle of rejuvenation but here's the stat that i bring up all the time it doesn't matter what source you go look at whether it's millionaire next door the next millionaire next door that sarah updated her father's research everyday millionaires by chris hogan our wealth index that we do when we survey our clients it is consistently 80 percent greater than 80 percent of millionaires our first generation meaning they don't come from wealth that's right they made this they built this and there's an opportunity out there and look we even sarah was this is how awesome her data was she went back to research from 1892 and of the people that would be the equivalent of millionaires it was still 84 percent where first generation affluent and what i think is so great about that the whole first and i mean obviously they're uh you know they didn't inherit it it didn't come from somewhere else but it's they could do it in a lifetime even back then inside of a lifetime someone could go from zero or not affluent means and build up to millionaire status it's just really incredible to think about that anyone can do it it really is an attainable goal now you and you and fte daniel had a private meeting on friday oh we do that on and that's okay because i had my own little private product that i'm gonna bring out in a minute but you you came up with and you said we need this is a perfect segue into a warren buffett quote and what was that quote yeah so this is what warren buffett said in one of his letter to shareholders this was i think in a couple years ago he said i'll repeat what i've both said in the past and expect to say in future years babies born in america today are the luckiest crop in history and i still think that that holds true because if you look at how many millionaires there were in 1997 yeah we have some resets like the dot-com bubble bursting or like the great recession but if you notice it's a march up the mountain there are more and more folks who have access to the ability to build wealth to grow their assets to grow their net worth i think it's probably easier today and the numbers would substantiate this to be a millionaire than it was fifty years ago comparing can contrast that message to what you're hearing every night when you turn on the news with what you listen to and what you read in the newspapers guys i get it i know where the limiting beliefs come from we're living in a society right now that is just it's it's scary there's some weird stuff going on and i'm just telling you you need to go ahead and think really long and hard about what your outlook is because we know the majority of successful people actually have a just grounded optimistic outlook and then what's interesting is i always i don't know if you want to call it prophetic or it's just i'm always thinking about things but i you know i was reading a book to my daughter y'all know i have my youngest daughter is autistic um she goes to a a special school here in nashville slash you know williamson county tennessee and her favorite book now you guys know i get not trying to get emotional about it but she struggles even though she's 11 years old she can't read i mean this is autism has she she's you know not like every other kid out there so but the fact that she is trying to read dr seuss is her favorite that's awesome books and this is the book this is actually a library book from from her school and she asked me to read it to her last night and i was reading this and by the way the first thing when i showed because jennifer came home from from she was out with some friends last night and she goes what book did emery ask you to read and i said this one she goes oh that's the book you know when she brought that home i made me think of graduation because that's a great graduation gift and then you went a step further what do most people do what are a lot of people doing yeah so my wife because you know she was a school teacher before stayed at home and what they'll do is they'll buy this and starting in kindergarten they'll ask at the end of every year a teacher to write a note to your child in this book other places you'll go and at graduation you give it to them so it's like a chronicle of them coming through school it's a really cool idea i i know where one of the two books that we have is i hope we are actually going to be able to hold on to it i would encourage you to tell them i mean the title alone says it oh the places you'll go and look as a guy who's getting very close to 50 um it is amazing the journey you go on but what grabbed me last night and i was like i have to use this in the show and it fit in nicely with your warren buffett quote is that i think a lot of people especially in 2020 there are so many people speaking curses upon themselves having limiting beliefs putting themselves in a box and dr seuss says it about halfway through oh the places you'll go he talks about the waiting place how people will go to the waiting place how they'll be waiting for buses they'll be waiting for better opportunities they'll be waiting for somebody to give them the pearl necklace he talks about waiting but then he closes it and that's why i've highlighted one page and i just want to read this no that's not for you somehow you'll escape all that waiting and staying you'll find the bright places where boom bands are playing i mean not to have story hour here but it is i mean i think that is what i want you to think about how do you make changes in your life what are your habits that you can do to make sure you're part of that 80 plus percent of first generation affluent versus just thinking hey the world's working against me and this thing's because i will tell you that data that was up there from 1997 brian preston was not in that data bo hansen was not in that data but you know what happens in 2018's data both of us are sitting in that data and you know what you too can do that as well i love it and if you want some motivation if you don't just want to listen to us go to our website go to moneyguy.com resources we have a deliverable out there i call it the wealth multiplier the team has actually named it correctly how powerful are your dollars if you want to see just how powerful every dollar that you put to work can be go out there and download that deliverable and you'll see that if you're 20 years old every one dollar can turn into 88 if you're 30 40 50 you can actually see how powerful it is so if you have not gone to check that out go to the website moneyguy.com resources and download that and we have another exciting announcement as you guys know we recently launched our very first course the financial order of operations course we are technically in our pre-launch period right now it's going live october 1st but as of today the facebook group is live so if you're someone who's pre-ordered the course you have access to the facebook group you've already been notified you'll get some information on us so if you've not gone to check that out yet you're gonna love it because you get to connect with other financial mutants we're going to share some advice share some motivation it's only available for course participants when you buy the course you'll get an invite inviting you to the facebook group it's going to play it could be a place where you can hang out with us so if you've not done that yet or if you want to be part of that community make sure you go out there and get a pre-order now but but wait before you before we move on and start taking the question and answer also don't forget to go to moneyguy.com resources we have a free resource this is not just this is not all pay-per-view because that's not what has built the abundance cycle for the money guys show just go to moneyguy.com resources download the free deliverable on financial order of operations it goes through the nine steps that we think about and that's really kind of i think you're going to get a lot of value out even the free resources yeah it'll also let you know where am i in the process to know if i need that nudge i need the worksheets i need the data gathering because maybe you don't but maybe you do need the acceleration of some having the coaches kind of push you as well as that facebook page love it so if you've not checked that out go check out moneyguy.com learn.moneyguy.com uh and we're just excited for you guys to check it out all right you wanna answer some questions all right i already know the first question i'm gonna ask i'm gonna pull up my sheet and pretend like i don't know the first question i'm gonna ask but i already know what it is uh and this is from a dear friend of the money guy show one of our one of our long-term fans this is from creative mechanic wait a minute i have to hit pause so this is proof that if you just keep nudging asking nudging asking that you will eventually get your way this is a way that our marriages work this is the way that it works with uh you know our children that's exactly right if you just ask enough it probably is going to come true and truly that is a great perseverance is a powerful power that's exactly right so go ahead with your question now so this is what creative said he says uh i'm 30 years old single income family income is 38 000 per year is it good to save 30 to 40 on a house by using a modular build instead of a stick built home we already own the land so his question is is if there's a way and i'm going to expand this question a little bit if there's a way that i can save on housing housing potentially i'm going to do modular housing or maybe i'll even do like mobile housing or want a tiny house is kind of a craze now and doing so will allow me to save more money for the future is that something that i should consider doing so first i think we have to start with some ground rules so we talk about when we do respect the food financial order of operations always lay out in the ground rules housing is 25 of your income so it is i think it's great when creative mechanic is now trying to figure out is there a way to essentially hack the system to make sure every dollar is maximizing and he asked about modular homes this is the question that's being set up correct yep now look modular homes i want to go ahead and clear this up is different than a mobile home a mobile home is what you know where you you pull the trailer up you know move to different move you know it's either single wide double wide modular homes are different all a modular home means is that they build a lot of the components of your house off-premise meaning usually in a you know in a big factory warehouse a big huge facility where they're creating the walls and all those other things they then bring it to the property that you own that's already got the foundation set up and then they assemble a lot of the components of the house versus custom or stick built where you'll just get the load of lumber dropped off and then you have the guys start and you know start cutting it sawing and then building it one you know nail gun at a time right so here's here's a little thing i think is interesting we're in nashville which is a super hot market and i have a neighborhood right down the street that is building million dollar homes i think people would be surprised to find out that a lot of it because they're production builders is modular meaning that the tractor trailers show up with a lot of the walls already pre-assembled and then they kind of put it all together and these are these are like i said a million dollar homes but but they're doing this this is why production builders use some of this to lower their cost you can usually get a cost per square foot that's substantially lower bo you've even you said that you believe one of your houses that you've bought actually was built this is the second home that i bought i didn't actually know i didn't know this was called modular homes i just thought oh these guys are creative but when it showed up it had like the walls already pre-constructed right so they still had to do all the stuff on the inside but it showed up and the foundation was laying they did that um and so i i when i hear this question i think ultimately when it comes to financial planning and deciding what makes sense for you it can't all be about the numbers it has to be what makes sense for your family what makes sense for your ultimate goals the things you want to accomplish if a modular home will allow you to save money and end up saving 30 to 40 percent of your income that's great if there are concessions that you're going to make by doing that like it's not as well built or there's not enough square footage or whatever the thing may be perhaps it's not worth that our goal is to get you saving 20 to 25 of your gross income anything above that is gravy but you have to make the decision what makes the most sense for me and my family because it does you no good to scrimp and scrimp and scrimp and scrimscript and not enjoy anything until you get to 65 or 70 years old and then have all this money but then like you missed out on a lot there's some balance where you get to do the things you want to do now that makes sense for you and your family but also save for the future in our view it's not all or nothing there is a healthy balance that you can strike i do want to because i'm just nerdy i want to know you have the a few components on because we talked about the cost savings i do think cost per square foot it's probably cheaper to do a modular type home construction i do want to give you the the things you need to be careful of or the things to pay attention to because somebody's going to go down a rabbit hole here and research is that just like with your financial life what do we tell people to focus on the foundational stuff you got to make sure you are set up you're in the ground well before you start you know you're not going to go do a dumb doctor deal which or you know do some of these complicated investments until you have the foundation of what you're building with your financial plan what's the same way with your house so if you are doing modular construction do not skimp on whoever you work with on your real estate to do the foundation because the how good the walls are is going to be of no consequence if the place is sinking into the sand right after that also if you're a customizer if you think they're going to move a wall here you look at a house plant you go that's great but i'd like to move this wall i'd like to add this here it's not going to work as well with a modular home customization is not your thing because that you're taking you're eating into the entire benefit of modular construction so just pay attention to those things see if it's a good fit for you and like i said do your research anybody who's buying from a production builder making a lot of it you might find they're using some of these components already because it is a very efficient way to keep quality consistent but also trim costs down exactly right it's a great great answer great question so i'm curious to see what the next question is from a creative member because that one's been pushed i mean this is probably months in the making so that's for you and by the way we spent at least seven minutes watching workout videos that he had on on instagram so that's another little tidbit oh man all right so this next question this is a quick one this isn't even really a question this is from brandon gravy said is the 25 income before or after taxes before taxes you want to be saving 25 of your gross income so whatever your salary is that's the number you need to think on i'm not gonna ask you to add to that because there's nothing to add to that he's cutting me off guys you see that he cut me off we're just gonna stop that one right there all right uh this question is from jimmy uh and this is an interesting one because it's one we talk about a lot he says can paying off my student loans too quickly be a bad thing and in parentheses he put credit score opportunity cost etc my loans are currently at four to six percent did jimmy tell us how old he is jimmy did not say how old he is why would it matter how old he is brian well because we've done look we've tried to create we always are looking for our our our process is is there a better way is there a systematic way we can look at big decision points and make sure we're doing it right we've done the same thing with debt prepayment and the fact that we said what is every dollar have the potential to become we you know you hear us talk about the concept of 88 times over for 20 year olds for 30 year olds we know it's 23 times 40 year olds it's seven times so it's you can quickly tell with that drop off every dollar the younger you start is so powerful that's exactly right so we have tried to take into account what is risk-free rate of return you know which is typically when you're talking about treasury rates and those type of things the premium you should get for taking the risk and we've kind of determined that for somebody who's you know under 30 then yeah if you're if your interest rate is you know five and a half to six percent maybe you should consider making sure you're getting that free money from your employer retirement plan maybe you should make even look at your roth accounts but for people who are getting older you know where the the rate of returns are going lower because of diversification then you know it might go down to as like a 40 year old who's even if your interest rate's like in the four percent range you probably want to get that debt that cut student loan debt knocked out asap because you don't want to be 50 years old with student loan debt we think that's a no-no that's exactly right i'm going to give you uh three resources if you want to do like a deeper dive the first is you can just go out to our website moneyguy.com go search and type in uh student loans or type in debt and you'll pull the shows that we've done on that in the past or we actually did a show last week two weeks ago that was taught like these financial decisions can cost you millions one of those decisions was comparing two people one that paid off student loans early and one that didn't pay it off early and invested you can very easily see the difference in the numbers and what that outcome looks like because it's very dependent just like you said on your age on your assume rate of return on your student loan rate all those things and then the third thing i'll tell you if you really want to do a deep deep dive we actually cover student loans in the financial order of operations course so if you want to just know more about that how i should prioritize deploying each one of my next dollars go check out the course learn.moneyguy.com but i think if you're young and your rates are four to six percent there's a good chance that it might not make sense to pay it off quickly you might want to think about a balance where you put your army of dollar bills to work i do have one more quick add because it also added about asked about credit building well credit building which is part of your credit score i will tell you guys this is something that's kind of unique while you're in college they are throwing credit at you because they know there's multiple things they know you're at the beginning of hopefully a prosperous career they know mommy and daddy are potentially sitting as a backstop for you so it's not uncommon for banks and financial institutions to be throwing credit at you left and right meanwhile when you graduate college it's almost like the music stops and you have to work a little harder to get that credit so i i i do think that building credit is a powerful thing because what is it impact it impacts what you're going to pay on your insurance rates i'm talking about your property and casual your audio auto insurance more and more often they are anybody that you're think about your utilities think about your insurance providers they're all pulling your credit score to to make some assumptions about you as an individual so make sure you don't neglect that that's a great part of the question i think that you should try to build credit probably while you're in those college years while they're throwing it at you but with that said remember we're okay with using credit cards but credit card debt is a four-letter word if you actually use debt meaning credit card balances are being carried over month to month you are doing it wholly horribly wrong and you should go cold turkey and not even use credit cards yeah and just so you understand this if you do choose to pay off your student loan debt early and you pay it more aggressively it won't actually harm your credit right that's not a bad thing because your credit utilization ratio will improve the one thing you want to make sure of though is that if you do pay off your student loans and it was the first debt that you ever had and then it's gone that could potentially hurt a little bit so you do want to make sure just like you said maybe have a student credit card or something so you can keep your length of credit history intact as long as possible exactly right okay this next one is from maxi maxi 40. this is a youtube question a lot of people in the fire community get there by doing roth conversions can you expand on that and how they do that without too many penalties in taxes so i think brian if i were going to ask this question what is a roth conversion and why is it something that folks in the fire community take advantage of and like to do well this is where i turn into like uncle brian and uh tell a little campfire story and the fact that hold on this is where you do that it's not everything everything everything i kind of do this on every question but here's the reality of it is that i think people take for granted planning tools that we have and and for older advisors you remember it wasn't always taken it just wasn't so easy right because pre-2010 there was actually if your income was over a hundred thousand dollars you could not even do a conversion because what a roth conversion is means that if you have any qualified money i'm talking about ira money 401k 403b all the pre-tax tax-deferred type assets you have the capability to at any point in time to turn those traditional contributions into retirement into tax-free roth assets the only deal that our favorite taxing uncle the irs makes of you is that you will have to recognize the income of that conversion of turning that traditional you know retirement asset into a roth asset that wants you to pay income taxes on it in the year there's not penalties which is a good thing that's an awesome planning tool so here's now that i've explained what a conversion is here's how the planning for fire typically works when does the government and this is a new update by the way when does the government require you to start taking your money out of retirement accounts both age 72 that's the new update used to be 70 and a half for required minimum distributions now it's 72. so you see people who retire early and it doesn't have to be the 45 year old even the 50 year old we see this all the time for even 16 65 year olds is that whatever period of time you have between when the government requires you to start making distributions more than likely your income tax bracket goes way down because you're no longer out there working and because you're in such a lower income tax situation it does allow a unique planning opportunity that you can fill up those lower tax brackets with roth conversions exactly right now there's some sticky points sure what are those sticky points well if you are someone who is later on like in your 60s or that sort of thing when you start converting it does bump up your taxable income so you have to worry about things like causing your social security to become taxed at a higher rate or potentially medicare surcharges or those sorts of items so you just want to make sure health care premiums healthcare because you're not going to get the subsidy if your income is over a certain level so you just want to make sure that before you start accelerating income into current years you understand the implications of that now that's a great that's speaking to like the fire folks who have already who have already retired or already in those lower tax brackets a lot of fire folks might be really high income earners right now and because of that they're no longer able to build roth assets they can't do direct roth ira contributions well another way that fire folks like to take advantage of conversions is through tax-free roth conversions of non-deductible traditional ira assets so there are a lot of folks out there that will put money into a traditional ira they don't take a deduction for it if they don't have any other iras out there no seps no simples no ira rollovers they can then choose to convert those dollars to roth well because they're converting all after-tax dollars there is no tax on that so you hear a lot of fire folks taking advantage of that strategy as a way to build roth assets where they couldn't do it otherwise put it up here this is what i love about being you i went with the planning because that's what i originally hit me you finished the loop completely by putting in the high income contributions man we just covered the entire concept and that's why i want to give you a high five because that's why we're a good team i love it well done well done blushing awesome all right let's do another one uh this is from nate nate said brian and bo this is for us not reeves and fted uh how did you both personally resist keeping up with the joneses once you realized you were actually wealthy enough to do so asking for a friend and then you did a smiley face so as you begin to advance in your career and as you begin to have some success how do you prevent yourself from keeping up with the joneses i have an answer but i'd be well i think the biggest thing when we talk about this if you go watch go do a cert go to moneyguy.com search happiness up there because you can go look at all of our archives all the way back to 2006 i talk about you have to know your why that's awful and i mean it really is a big factor in it and then you look you will reach a point of success there's always going to be somebody that has more than you so you have to once you figure out your why you can figure out where your contentment lies and quit swimming upstream yep i mean there are so many by the way anybody who's been a private pilot i'm not by the way i just did the research into it because i thought about it for a split second before i realized nope not gonna do that but it's um for people who are private pilots there's an adage that most people who get into this hobby will price themselves out of it because they keep going to nicer and nicer planes like if you just bought a cessna you'd probably be happy but but they they don't they go to the dual props they go to the more complicated moonies they do all kind of things and before you know it they price them well they priced themselves out of that choppy i see this all the time when we have prospects come to us with outstanding incomes but have hardly anything to show those are what we call income statement affluent balance sheet or net worth statement poor and that's not what you're trying to do and that's why a lot of the things pay attention to the big things like i'm talking about car purchases housing and figure out what your why is where you're happy that's why i know when i lived in georgia i mean our house i loved it i thought it was beautiful loved my neighbors they're still close friends i moved to nashville and the housing price point was just at a substantially higher point i think all my neighbors back in georgia like holy cow brian could afford to do that and i was like it's because i'm i am the definition of stealth wealth from the fact that when i was younger pre-40 there's no reason to go flex i think you know here's the thing i think is interesting about wealth when you can afford to do anything you find that you don't do all the things that society and the jones tell you to do i mean i went to vegas with a friend back at the beginning of the year but pre-covered you know and all everything that happened and where he and he wanted to go look at all the designer watches and i was looking and i went through my own watch phase sure but now that i'm at this different level i just want to i like that because it tells me everything it tells me all you know my activity levels and stuff like that and it's the same reason when i was 16 years old i daydreamed about owning a corvette when i turned 25. that's right i knew i was nerdy enough at 16. i knew when i turned 25 that insurance premium rates would fall and i'd be able to afford the corvette got to 25 did i buy the corvette nope no because i wasn't 57 years old that's the average age of a corvette purchaser but it was just because my desires had changed by the time i reached that point i have realized don't let somebody make your dreams or the vision of what you should have for you figure out your why so you can go to your own drum beat know what you're shooting for know what your goals are and that way because you're going to find when you get to be 30 years old you're going to think your 20 year old self was ridiculous when you get to 40 you go i think your 30 year old self doesn't have it figured out it is that way throughout your journey so go ahead and start grounding yourself and what's actually important what brings fulfillment and you won't get distracted i think you that is so beautifully said i'm going to reiterate exactly what said number one is know your why and then number two is know your guard rails now this is a unique thing for the money guy to show to say it's okay to own a 10 million dollar house yeah if you have the wealth and the income and the ability to substantiate that and part of your why is being in a 10 million dollar house that's totally okay i have a lot of friends who cars are their thing they want to drive the really nice really expensive car so long as their if it's luxury they're paying it off in one year and they're saving 20 to 25 percent it's okay so long as they're staying inside of those guard rails but if you're going to make one of those decisions make sure you're making it because it matters to you and it's part of your why and it's not part of trying to fulfill someone else's someone else's why a big way to make sure that you're not keeping up with the joneses is to make sure you're doing the things that joneses aren't doing which is saving that 20 25 percent taking care of all the steps of the financial order of our order of operations and not getting it out of order now if you own a 10 million dollar house you better have a be doing all right that network better be rocking it i mean i'm talking about where it's generating like 10 million a year of army of dollar bills love it because if you're going to take that many soldiers off the field they'd better be worse i love it and then uh you should reach out to boundwealth.com let's do one more one more question this is from jared he said foo foo step number six is max retirement hybrid accumulation is number seven but if my goal is to retire early and my 401k is projected to be huge should i slow 401k and focus on building taxable assets instead now remember i think this is something and by the way this is something we clarify well i'm sure we'll if you go join the facebook sure you know chat room facebook facebook group as well as you know we're gonna be doing some private shows on this as well as just understanding how financial order of operations works is that you're going to be able to graduate i think a lot of people get confused on this they think that when you get to max out retirement hyper accumulation how do i get to funding kids college and so forth the goal is to get you to 25 savings rate once you get to you pay yourself first essentially to 25 you can graduate to the next level and save outside of you know the max out retirements and other things and i think that's a key point so if you're a fire person you're more than likely saving 35 or 40 because you're doing crazy stuff not not the traditional path of the person that plans on working until they're 65. so yes you are going to have the freedom as soon as you exceed 25 of your gross income to do some of those unique planning things you need to do plus you heard us in a previous question roth conversion strategies when your income is substantially lower if you're in a current high income situation all that stuff goes into your multi-faceted plan it's hard to give one piece of advice to every person because guess what you're all snowflakes so you're all unique you're all different your fingerprints are different the way you process the world the way your accounts are structured the way your income is structured we have to build all that into the plan we try to give you general advice but it is very custom yeah that's what's going to say because it's general advice uh the foo is guidelines not gospel so it does deviate some when you have a unique plan and unique circumstances and unique goals and unique things you're trying to accomplish it will help you along the way but yeah there can be times where you might say oh if i need to retire early i really need to be building up taxable assets and that's okay that's still part of the ground rules of food which is getting the 20 25 percent you said this was our last question so i want to clarify one thing okay we have built the money guy show off of the abundance cycle which remember guys as you come here we're going to just load you up with tons of free advice information you come learn apply these concepts you go grow until you reach a level of success that guess what this is a win-win situation you are now so successful that you want a co-pilot or somebody to help you out and that's when you become a full wealth management client of of a bound wealth that's kind of how the abundance cycles work so now we've added this financial order of operations we give you the free resource because we want to accelerate those of you who don't need a financial advisor yet which we think is probably somewhere between four to five hundred thousand dollars you just want to know where i am in the process what do i need to be doing go download moneyguy.com resources the free deliverable and then if you're somebody who knows you needs a nudge you know you need data gathering forms the course is only to be an accelerator it's not to replace the abundance cycle we still want to graduate you to working with us down the road but if you need some accountability if you need somebody to nudge you that's what it's there for it's not meant for any other purpose than to be an accelerator of your success but go grab the free resource just so you know where you are in the process i love it if you're someone out there and you've not subscribed and you guys have been doing a great job of subscribing we're about to cross over 81 000 make sure that you subscribe on youtube go out to the website let us have your email address so we can keep you updated and if you have pre-ordered your course we will see you in the private facebook group it's gonna be a fun place for us to hang out braun bow money got team out

Channel: The Money Guy Show

Views: 26,943

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Id: Mt63xgSiOSw

Length: 39min 55sec (2395 seconds)

Published: Tue Sep 15 2020