In short
The episode asks whether “middle class” should matter for your financial strategy, using state-by-state income thresholds and arguing that behavior and wealth-building “order of operations” matter more than labels. It also answers multiple listener questions about the Financial Order of Operations (steps 7–8), car financing rules (23/8), mortgage vs investing, whole life insurance vs term, using home equity for a move, and when to “take it to the next level” after reaching ~$1M.
Guests
No named guests appear in the transcript. The hosts are Brian (Money Guy) and Bo (Money Guy), plus occasional questioners from the live chat (e.g., Jerry, Joe C., John West, Mrs. Sass, Brooke, Outta Here).
Key claims
Middle class by state ranges roughly from $49,000 (Mississippi) to about $90,000 (Maryland), averaging ~$69,000, but labels don’t determine financial independence. Wealth creation depends on behavior (spending less than you make, margin) and following the Financial Order of Operations. Step 7 is hyperaccumulation (goal-based retirement/account planning), step 8 is prepaid future expenses (“abundance goals”).
Notable examples
Don’t miss employer dollar-for-dollar match; use margin to increase income “shovel.” Car financing: 20% down, max 36 months, payment <= 8% of monthly gross, and avoid luxury brands. Mortgage/investing: reject “take a mortgage to invest” as a straw man due to friction costs and risk; start investing early. Whole life: “it depends,” compare surrender charges and consider term insurance (example: term quotes under ~$200/year for large coverage). Home move: keep some liquidity beyond relying on home equity.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOUnderstanding Middle Class by State
0:34 to 7:50
Discussion on what defines middle class income across different states.
“It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.”
Building Wealth Beyond Labels
7:50 to 14:03
Exploration of wealth building behaviors and financial independence.
“We are definitely past step six, but I'm not sure which step we are on now.”
Understanding Car Financing: Cash vs. 23-8
14:03 to 17:58
Learn about the circumstances under which paying cash or financing a car is advisable.
“Because your question was, what is the income threshold where I should consider paying cash instead of 23-8?”
Engagement with Financial Audience
17:58 to 19:14
Discover how the podcast hosts value engagement and feedback from their audience.
“I know it's not ready yet, but I just want them to know that, hey, one of the things we value, because I'm just watching the chat, I love all the stuff that comes in from the chat.”
Upcoming Collaborations and Content
19:14 to 20:17
Get insights on future collaborations and content with other financial influencers.
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Investing While Managing a Mortgage
20:17 to 28:00
Understand the nuances between investing and managing mortgage debt effectively.
“Speaking of finances, want another question?”
Navigating Financial Decisions
28:00 to 29:24
Discussion on balancing savings and mortgage payments while building wealth.
“And I'm always like, wait a minute, let's dive into this.”
Navigating Financial Decisions
30:35 to 30:58
Discussion on balancing savings and mortgage payments while building wealth.
“It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks.”
Evaluating Whole Life Insurance
30:59 to 39:40
Analysis of the pros and cons of whole life insurance versus other options.
“I recently found you guys and we are trying to figure out what to do with our whole life insurance policies.”
Home Equity and Down Payments
39:40 to 42:00
Advice on using home equity for down payments and managing liquidity.
“And Brooke, here's what I want you to do one thing really quickly.”
Show all 19 chapters
Building Assets Beyond Your Home
42:00 to 43:36
Learn the importance of diversifying your assets beyond just home equity.
“when you're trying to build assets that are working harder than you are, when you're trying to replace labor and you want your money working for you, income producing, we got to get it outside of just your home.”
Merch and Audience Engagement
43:36 to 45:30
Explore ideas about engaging with the audience through merchandise giveaways.
“They sometimes forget the name of that download for some reason.”
Navigating Financial Decisions at Millionaire Status
45:30 to 50:40
Understand when it’s time to level up your financial management as wealth increases.
“It says, I turned 46 last week and also just inched above the$1 million mark in savings and investment, which is so exciting.”
Emergency Funds and Financial Planning
50:40 to 56:03
Learn the essential role of emergency funds in maintaining financial stability.
“Basically, let us give an infomercial on a question.”
The Importance of Emergency Funds
56:03 to 57:23
Learn why maintaining an emergency fund is crucial for financial stability.
“it will cause you to answer the question, is my emergency fund fully funded?”
Engagement and Community Building
57:24 to 58:01
Discover how the hosts engage with their audience and the value of community.
“We would love to send you a Tumblr as a special thank you.”
The Abundance Cycle in Finance
58:02 to 59:08
Understand the concept of the abundance cycle and its impact on personal finance education.
Building Relationships with Listeners
59:09 to 59:34
Learn about the hosts' approach to fostering relationships with their audience.
“seven-figure or even first seven-figure enterprise.”
Building Relationships with Listeners
1:00:14 to 1:00:37
Learn about the hosts' approach to fostering relationships with their audience.
“Well, I'm letting go of the worry that I wouldn't get my new contacts in time for this class.”
Transcript
Automatic transcript. May contain errors.0:28This episode is brought to you by Accenture. This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome, that's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+.
1:02have you ever been curious what's middle income or middle class by state but i am so excited to talk about this because today we hear this all the time we hear middle class middle class and we're going to talk about by state what it actually takes to fall into that category you may be surprised because honestly, the range was different than I guessed it would have been. And it's like most things financial. It depends on where you live. That's right. Actually, we pulled this data from visual capitalists and smart asset. But look at this. You can compare and contrast. There is a broad difference here.
1:44If I look at who's the lowest Mississippi, 49 ,000. If you look at the highest, now there's a few that were in the$90 ,000 range, but the highest, according to the stats, was Maryland right at$90 ,000. And if you look at the average across all 50 states, it comes in right at$69 ,000 to be labeled middle class. So ranging from as low as Mississippi to as high as Maryland with an average right around$69 ,000. But the question becomes, okay, is this helpful? Is it valuable? If I know that I fall into the middle class, does that actually impact and affect my financial journey or is it something that's even worth knowing at all yeah i mean this is one of those things where i'm trying to figure out what what's the actual teachable things just from just knowing the data on where middle class falls and so we did try to create a few takeaways for the audience so y 'all can start you know seeing if there's a teachable moment here or takeaway for you and the first thing is don't get caught up in the labels.
2:47That's right. I will tell you that there are times in our life that our incomes were in this lower side, but that didn't define us at the time. It was more of the behaviors, the discipline. We'll get into even that more so. But don't let the labels define everything you are or you're not. Yeah. Income is crucial to being able to build wealth, but it's not all that matters. It's not the only thing that matters. And one of the things that we want to encourage no matter where you fall on the income spectrum, is figure out, are there ways that you could be harvesting the white space? No matter where you are, what stage is, are there opportunities where you could potentially increase your income?
3:26Maybe you live in one of these states and you're not middle class, or maybe you live in one of these states and your income has you in that middle class range, but there are opportunities for you to expand that because the bigger your shovel gets, the more you can increase that, the more opportunities you give yourself to save and begin to build wealth. So are there side hustle opportunities? Are there other income things? Are there things that you could do even inside of your vocation to advance your career? Again, it's not about moving from middle class to upper class. It's about recognizing that there are three key ingredients when it comes to wealth creation.
4:01And one of those ingredients is margin. And if you have the ability to influence your income, you can then increase the margin you're able to use to build towards financial independence. Well, and I love that because that leans into the whole discipline component when we're talking about those three ingredients to wealth building. And that leads to the next point is that the FU is your all-terrain vehicle. That's right. If you think about what FU does for you, it fills in the basics of, hey, go get the free money from your employer. If they're offering you dollar for dollar match, don't leave that on the table.
4:30Stay away from the credit card debt so you're not paying 20 % to this bank while you dig a bigger and bigger hole for yourself with fake consumption dreams. And then emergency reserves is, of course, going to create that buffer. It's such an important thing that it's steps one and four of the financial order of operations. So you don't have to make desperate decisions when life happens. Yeah. If you would like your free copy of the financial order of operations, Brian, will you hold yours up for me real quick? Yours, the one that you download might not be laminated, but it could be. But if you want your free copy, you can go to moneyguy.com slash resources to download that.
5:05And what we hope that you take away, and this is maybe the big summary point, is that when it comes to building wealth, your behavior is likely much more important, much greater than your income. Brian, we have seen people and we have clients here to Bound Wealth who never actually made it past six figures of income as a household, and yet they are fully financially independent. And we have folks on the other end of the spectrum that have huge incomes that would certainly be labeled as upper class by income, and yet they are not at financial independence yet. The behavior matters, and it doesn't matter what your label is.
5:42It matters, are you using your resources to create the great, big, beautiful future that you want? Yeah, the two that kind of I feel like marry nicely together is that the behavior and then the harvest, the white space. If people can lean into the discipline of living less than you make, And if you feel like, hey, that's impossible because just life is too expensive for me to even have that margin, then go out there and figure out how we can increase that component, that shovel of the income. That's right. These are the things you don't have to be stuck. What I love is after we record this live stream, we're actually doing our millionaire survey where we actually look at all of our clients and we share the content that came from doing the survey of our clients.
6:25And what's so amazing to me is how many of them, just like all the stats when I read Millionaire Next Door, I put the stats in Millionaire Mission, and now even the surveys from all of our wealth management clients, how many of these people are first generation? That's right. Meaning they are the first ones in their family that crossed into that seven-figure sphere. You also have the opportunity if you just maximize that huge component of your behavior and taking control of what you're doing with your financial life. Brent, I love that we get to sit in this spot. I love that we get to answer the question, hey, do labels matter?
6:57Is that something I should focus on? And if not, what should I focus on? And what are the decisions I can make to better my financial life? It's one of the joys that we get to do. We get to curate this content and put it together. But we also love that every single Tuesday at 10 a.m., we get to show up right here to answer your questions and load you up because we care about the things that you care about. That's why right now we have the team out in the wings collecting your questions. So if you want to get our take on something, if you want to ask us a question, you want us to get us to weigh in on your situation, make sure that you get your question in the chat right now.
7:34So with that, Creative Director Rebe, I'm going to throw it over to you. Yes, I have a question from Jerry to start us off today. It says, hi guys, what is the difference between step seven, hyperaccumulation, and step eight, prepaid future expenses in the financial order of operations. We are definitely past step six, but I'm not sure which step we are on now. Thanks. A classic foo question. I love this question because I feel like we get asked this one a lot. For those that aren't familiar, step seven is hyper accumulation. And then step eight is prepaid future expenses, or I'm sure Brian will tell you has another cute little name for that.
8:16And this is one of the things that you wrote extensively about in Millionaire Mission. I was thinking the same thing. Because you get asked this, hey, how do I know? Okay, I understand step six. I understand maxing out my employer sponsor retirement plan. But then what about seven and eight? How do I navigate this? What was it you wrote in the book? Yeah, if you look at one of the things, this is why I do love the financial order of operations and the fact that it is an all-terrain vehicle. It serves you no matter where you are in your journey is a lot of steps. If you think about steps one through four, they're really to keep you from making those desperate decisions, keep your life out of the ditch of making bad mistakes like credit card debt, missing out on free employer money, or not having that margin of emergency reserves.
9:00If you think about the steps five and six, these are math and tax base driven that they're trying to give you, how do you maximize the saving element of your life that that lets you keep as much of this working for you as possible. It's not until you get to step seven, where if you think about hyperaccumulation, this is where I'm counting on you to be able to know, hey, how am I going to use this money? This is the first step that says, no, let's not let this be formula-based or maximization-based. Let's say, actually, how are we going to use these resources? Because personal finance is so personal.
9:33There's a huge difference between somebody who says, I'm going to retire at 55 versus somebody says, no, I'm one of these people, I think I'm going to work until 65 or 67. Your goals are completely different. You're making different structures with how your accounts need to be set up. That's right. So that's why you can't skip through step seven where it says, hey, how am I going to use this money in retirement? What does that look like from taxable assets, tax deferred, tax free like Roth? When will I need to get into these accounts? And then that will set up to where now you're educated. It's not just a guess or a reward system.
10:11You get to now go to step eight, which we titled prepaid future expenses. But it also, I like that in Bo's right, I call it abundance goals is because this is now where, yeah, do the kids college. If you want to get into residential real estate investing or commercial real estate investing, it's okay because you have now a financial base underneath you. If you want to go extend your lifestyle with maybe a nicer car or some other big expense or a trip or something that seems like it's excessive, you've now put in the work that this is the right time to do it because you did all the work through steps one through seven.
10:43I love it. If you're someone, again, you want to know more about this, a few ways you can learn about the Foo. One, you can go to the website. You can download your free copy of the resource, moneyguy.com slash resources. You can also do a deep dive into the Foo course. You can go to learn.moneyguy.com. We have a curated course with modules you can work through so that you understand that, or you can pick up your copy of Millionaire Mission if you have not done that. By the way, it's a great gift for a lot of your kids that are starting back as seniors or freshmen in college. It's a great way to get them to start thinking about money the right way as they move into these big transition periods of life.
11:21Yeah, the last review on Amazon currently, unless somebody writes another one today, was from late July. And they were like, this is the greatest book since Millionaire Next Door. And I was just like, this is okay if this is the last comment we ever get on here, but it's also, y 'all have no idea how much it warms my heart when I see people look at this instruction manual that took some time to write and then people are actually getting a lot of fruit from it and it's actually changing their financial lives. That's a hefty compliment. That's a Brian kind of compliment. I like that. I mean, that is, you have no idea.
11:56If there's like a bullseye on compliments, that one is like right in the middle. I mean, stuck it. That's what he was going for. Well, Jerry, thank you for asking the question. It is your lucky day because it is Tumblr day. And you got your question answered on the live stream. So, Jerry, if you would like a Tumblr, email winner at moneyguy.com. And we would love to send one to you. The chat, write another book, Brian. Write another book. Write another book. Write another book. What's funny is that I had a lunch with my publisher yesterday. Oh, there it is? I try not to pressure you, but if y 'all want to write another book, it would be okay.
12:27And I'm like, yeah. Your answer was good, though. You were like, if something comes to me that I'm passionate about, then I would consider it. But right now, Millionaire Mission is like... It's still checking a lot of the boxes. I even think one of the things, because we had a lunch with the publisher. He was, of course, pitching ideas and stuff. There is probably going to be some opportunities for us, even with Millionaire Mission, to kind of do some additional things. So, I mean, you guys put on your thinking caps if there's things that you're like, man, this was 99.5 % awesome. What's the 0.5 % that we could have done better?
13:00There is going to come a point. I want feedback from Financial Mutants. Yeah. No, I love that. All right. Next question is from Joe C. It says, hi, Brian and Bo. At what income threshold would you say it's no longer appropriate to finance a new car with 23.8? and that you should pay cash instead. For reference, I make$120 ,000, I'm 32 years old, and I'm on Foo Step 7. So is$23 ,800 for anyone? Or is there a point where you're like, you should be paying cash? Give them some guidance. I want you to kind of fill in the gaps here. But Joe's got something that I hate that we've got a preconceived notion that I think is false here on the way this is set up, is that we prefer cash on all cars.
13:48I mean, that is, 23-8 is supposed to be a lifeline, a bridge, for those of you who need good, reliable transportation to get to your JOB, because that's your first step in building wealth. What would you add to that? I was going to say, okay. Oh, crap. Did I take it all? No, no, no. I love that. I took all air. Because your question was, what is the income threshold where I should consider paying cash instead of 23-8? I would argue it's at whatever income allows you to do that. And so we have people who have, again, below six-figure household incomes, but because of the way that they're able to save and because of the way they're able to build up and because of the way they do sinking funds, they save up for money in cash so that they can pay for cars outright without sacrificing saving 25 % of their gross income to the future.
14:40We have other folks who have very high incomes that aren't there yet based on their lifestyle commitments, depending on the part of the country they live in and what their mortgage payment is and where their bills are going. They just don't have the margin to be able to pay cash for a car yet. So a lot of it does become behavioral, but our preference is always for you to pay cash. But if you can't, if you're not in that position, if for some reason you're not allowed to do that, or if paying cash would cause you to have to do so at the consequence of being able to fund your other financial goals, then we allow you to do 23-8, where you can put 20 % down on the automobile.
15:21You don't finance it for any more than three years or 36 months, and your total car payment cannot exceed 8 % of your monthly gross income. Now, a lot of people think this is only for new cars, but you can apply this to used cars as well. Any car that is new to you, we'd love for you to pay cash, but if you can't pay cash or paying cash would cause you to deviate from your other long-term financial goals. We allow you to do 23-8 so long as, and there's this third caveat, if you're buying a luxury brand, you can't do it. If you're going to buy a luxury brand and you're going to try to use 23-8 to justify it, our opinion is you are buying more car than you can afford.
15:59If you can't pay cash for the luxury, it's not time for you to get a luxury. That's thing number one. Thing number two, we never want your monthly car payment to be more than your monthly savings and investment amount. So if you have, we did this react video a couple of weeks ago, it was like a thousand dollar car payments. If you have a thousand dollar car payment, buddy, you better be having more than a thousand dollars a month going into your investment accounts. If you're not doing that, you're doing it the wrong way. Always people want to know how do rules come to exist? You know, for me, it was more of a, we got to have a no hypocrite policy.
16:35I think about my journey to wealth building and it's easy for a guru to tell you, you should just pay cash for all cars because cars are absolutely horrendous for the wealth building journey. But then I looked at my own life and I goes, yeah, but there's a portion of my life when I was in my early twenties where I got my brand new job and I couldn't, I had like a thousand bucks to my name. So how was I going to go pay cash for a vehicle. No, I needed to finance a car. So, okay, well, if we've got to finance a car, how do we do it in a responsible way so that we don't steal from our future self so we never have future success financially?
17:11And that's where 23.8 comes from is because I think it's sometimes in the choosing your expert that you're following, there's a lot of people that will tell you what you should do. But when you actually do the research on what is successful people doing, these are the absolutes that yes in best case scenario you know you'd like to do it this way but if we all had wings we'd fly i mean and that's just not the reality we live in so we've tried to give you the best system that actually meets you with the reality of where you are versus just making you feel really guilty that's right because you might have to go finance your first car yep great job guys josie thank you for asking the question and for being here in the live stream and for that we would love to send you a tumblr just email winner at moneyguy.com and we'd love to send you one um we have a thing coming up are we like can we talk about the thing now or can we not talk about it you are being very there's a lot of things so i'm curious to know what thing usually this is the role i know i know you don't keep secrets very well the thing where we i just i was just going to tell our people to keep an eye out we got like some audience financial mutant engagement stuff coming out in the future.
18:21I think that's a good show. That was a nice way to tease it. I know it's not ready yet, but I just want them to know that, hey, one of the things we value, because I'm just watching the chat, I love all the stuff that comes in from the chat. Like right now, people are throwing out, I missed what caused it, but like all kinds of merch ideas, right? And I'm like, okay, if we did merch, what would you want? Would you want a hat? Would you want a t-shirt? Would you want a Tumblr? Would you want a mug? Like what are the, actually, that'd be a great survey to do. What I'm saying, though, is I love when we're able to get like insight and feedback and information from our financial mutant audience so much so that we have some stuff coming out about that.
18:59Between now and the end of the year, we will have hopefully multiple avenues for you to do that. And that will be amazing. I can't wait to hear what you have to say because it really does make our content better. And I just love hearing from you. So watch for that. Make sure you're subscribed here on YouTube and then make sure you go to moneyguy.com and click on follow us and subscribe to our email list because that's where you get even more info right into your inbox. I thought because, you know, we just had where we did, we went on ice coffee hour and truly amazed to see how much of our audience, I mean, wow.
19:33I mean, really, the interview did great. Really impressive. So thank you guys, all my financial mutants that went out there and supported us on that. And I don't know what's in the air, but we also have another collab coming out with Aaron Talks Money. Because a lot of you guys in the comments, y 'all are like, you know, I like Aaron Talks Money. We're like, good, because we just did some content with Aaron. We do too, it turns out. She's amazing. She was awesome. Yeah, that was a really good experience having her come in studio for that too. So really cool things coming down the pipe for you guys.
20:04And then we even have some more collabs in the future that we're working out the logistics on right now. So I'm not saying it's a new chapter necessarily because we do these things as they come available. But I think we are seeing the power of it's fun to kind of get with people who think about content, creativity, and finances. I agree. Speaking of finances, want another question? Yes, ma 'am. John West asks, Mr. Ramsey says investing while having a mortgage is the same as taking a loan to invest. The money guys are okay with arbitrage, but not okay with loan for investing. So what's the difference?
20:49Now, do you think this is in reference to Gordon Ramsey? Because I've not heard a ton of - What is Gordon Ramsey's house buying rules? I haven't heard a ton of that. Yeah, we hear people say this all the time. okay uh if you're going to invest this is the way they pose the question ryan if you're going to invest while you have a mortgage if you had a paid for home would you go take a mortgage out on that home and then use those dollars to go invest explain why that's a straw man is a straw man because look nobody i've actually there are people that have done that strategy and they were I've even had a prospect that I've told you guys from all the way back to 2003 that that's when they came to me is that they had an advisor that was recommending they take a home equity line to go put it in the financial markets.
21:35I've never, ever, ever, ever recommended that because, but this is why it's a straw man argument is, is because when you go take out debt on a house, there's a lot of friction costs. You think about all the recording fees, um, you know, you have to pay the banks to, to do the loan. there's just a lot of things that go into it that that's that's a you're never going to recommend that plus we don't think it's a it's a smart strategy to have an asset and then immediately go and leverage it up we've never been like and that's the thing and look we're not picking on dave um because i think dave is trying to get people to focus who are really bad with money on how extreme they have to to to think to fix their life but but sometimes dave does get carried away where he tries to to expand the umbrella so far that it that us financial mutants get caught up in the wash of it that's right and that's the part i'm here to try to clarify is that yeah know thyself if you are a person that you can't trust yourself that if you get a paycheck you know you're already headed to the check cash in place as fast as you can get it to burn a hole in your pocket then yeah you probably ought to lean heavily on these absolute teetotal rules but if you're somebody who's just always been good at math you know you were the kid in second grade or first grade i can't even remember what year you learned to do multiplication tables but you're the one winning all the speed drills you're like wow and you get your calculator watch and you realize how cool just doing math is and and you hear dave's rules and you go something's just i know that i'm not going to run up 20 credit card debt that i'm paying 20 and all these other things then And I don't, I would rather you have a balanced approach that we understand when we have, especially in historical, we've had low mortgage rates and you have this arbitrage of that you every month, you can set up a systematic automatic for the people behavior of putting a few hundred dollars in.
23:31Because remember, I'm the guy that learned in high school, a hundred dollars a month would make me a millionaire. And that concept right there is what lit the light bulb off that said, yeah, I don't come for money, but man, oh man, I can save$100 a month. And that is the power. I am the proof that this works is that you can, you can put a little bit of today for that great, big, beautiful tomorrow. And that's one of the things that, that, you know, and like I said, we love Dave and them, but it breaks my heart when I see people forego their employer match. That's a dollar for dollar match because the just compounding, if you go to moneyguy.com slash resources and look at the wealth multiplier for a 21, 22 year old.
24:10And then people say, yeah, but it's only for two or three years that you're going to miss out on the employer match. Go extrapolate that. You will, you will be shocked that this one decision could literally be hundreds upon hundreds of thousands of dollars. Look at my book, Millionaire Mission. I missed out on$10 ,000 of Roth IRA contributions back in the early part of my career. And I still kick myself for that$10 ,000 because I highlight in the book with real performance of what I've done in my Roth IRA account and then even took it and said, hey, if I kept going at this pace, what does it turn into?
24:42It was a hundreds and thousands of dollars worth of decision. So I'm not picking on Dave because I think that's what John, you know, you're bringing up Dave into this, but it is one of those things I think you just have to know thyself. And if you resemble more of a financial mutant and you know that, you know, a credit card debt is not going to be hiding under your bed at night and a credit card use is not going to hide under your bed and chip at you when you get up to go to the bathroom in the middle of the night or you know you understand that you can you know pay down your mortgage in an accelerated fashion but by the way i will give because i even sent this to somebody over at the ramsey organization that we're friendly with i will no names will be given but when i paid off my mortgage i got a i got a text and i said you know it is interesting that i almost to the day I paid the house off within 10 years.
25:30Wow, how that works. I know it's a stat from, if you remember from Everyday Millionaires, it says millionaires pay their houses off in 10 years. Yes, but I am a far journey from where I was when I bought my first house. And that's something I always remind people. There's a time and a place for all, even stats you have to be careful of, is that, yes, I paid my house off in 10 years, but I was also in a much more mature place to where my mortgage and even the home value compared to my total net worth is just not that big of a deal. So that's why I don't want somebody who's the opposite of that, where you have zero financial assets, but all of your net worth is in your house, to think, oh my, well, I don't ever need to go, I'll just pay off this house, and then I'll invest, because it's harder and harder for you to build those financial assets that can work harder than you can with your back, your brain, and your hands.
26:18That's what I was going to say, and I want to be careful not to put words in Dave's mouth, because a lot of times people will say, oh, well, Dave says this. Well, it's not actually what Dave says. It could be Dave-ish. But I hear people who will take this stance, I'm going to pay off the mortgage and then I'm going to invest. And I don't think that's exactly what Dave says, but let's use that argument. So say you take the time from 20 to 35 and you pay off that mortgage. All the time people say, yeah, yeah, if you're investing, you're not factoring in risk. You're not factoring in risk. No, there's a very real risk that if you do not start saving until age 35, depending on the kind of lifestyle you want to live, you cannot make up for that time that you lost from 20 to 35.
26:53And so that's why what we build into the financial order of operations, what we build into our philosophy around money, is what decisions can you make will give you the highest probability of success, given the things that we do know and the things that we are familiar and comfortable with. And we know that the earlier that you start investing, the better off it will likely be for you in the long term because time is one of the three ingredients of wealth creation that is so, so valuable. And we hate to see people, especially young people, miss out on that. So that's why we're okay if you do a 30-year mortgage.
27:29We're okay if you don't put 20 % down. we're okay if you have a mortgage payment so long as it's less than 25 percent of your monthly gross income because that leaves a margin for you to get to continue building for your other financial goals i have a stat that it's now this is not scientific because it's the the population size is pretty small but a hundred percent is where the stats at for every person that comes in and does the studio tours or a meet out and they say brian i did something that you're gonna hate i I follow Dave and I paid off my mortgage early. And I'm always like, wait a minute, let's dive into this.
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28:05Because once again, you have to be careful of statistics because they can skew. I said, I have a question for you on this because I think you might not be breaking the rules, my rules, as much as you think you are by following what Dave suggested. I said, were you saving and investing 25 % of your gross income first before you threw that extra money on the principal of your house? Oh, yeah, I was saving 32%. And then I was like, well, you're doing it. That's the whole part of the financial order of operations is when you get to steps eight and nine, do what you want with the money at that point.
28:41I just want to make sure that I don't have 32-year-olds not saving and investing a penny because they're trying to pay off a 4 % mortgage. That's going to break my heart because I just know the value of that army of dollar bills. But that's why I think I have found instead of this being a divisive issue, that more often than not, you guys have the instincts to where you like, yeah, I want to pay off my mortgage, but I'm going to make sure I get that investment in there first. So I don't think be careful of straw man arguments, because I don't think it has to be an either or that you I think that there's a balance there where you can pay off the mortgage in a healthy period of time.
29:17But also make sure you're building your army of dollar bills. You live your best life. Love that. Love it. Remember, if you want a refresher on the financial order of operations or the home buying rules, go to moneyguy.com slash resources. We have downloads there that you can get for free so that you can actually look at it and internalize that and just have that in front of you. Even when Brian can't talk to you personally in the moment, we have those resources for you. All right. And John, by the way, thank you for the question. Just email winner at moneyguy.com to get your Tumblr. People don't think there's a turf war between us and the Ramsey folks, do they?
29:53No. I don't think so. I think it's just nuance. Dave walked in right now. We say, Dave, come sit down. Come hang out. This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify.
30:32This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. It can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required. Compatibility and availability varies 18 plus. Yeah. All right. Mrs. Sass has a question for you next. I recently found you guys and we are trying to figure out what to do with our whole life insurance policies.
31:10Our premiums for the policies add up to$630 a month. If we close out the policies, we will lose$20 ,000 that we have paid in so far. Should we keep them and use them as an extra emergency fund in retirement? Or should we cut our losses and max out our Roth IRAs investing 25 % and they are investing 25 % and have 540K invested net worth? And I also want you to talk about what you think about life insurance because she found you and now they're thinking about their whole life insurance policy differently. All right. So we're saving 25%, 540 invested. I'm going to give you the answer right away, Mrs.
31:50Sass, to what you should do. And the answer is, it depends. Because unfortunately, we don't know enough about the individual policies. And even not all life insurance policies are created the same. What I'm going to imagine is going on right now is that you've been paying into this policy$630 a month. But if you were to surrender it right now, Now, you said you would lose about$20 ,000. Now, I'm not sure if this has been a longstanding policy and you're calculating the tax impact or more likely if this was some sort of product where there's a surrender period, where if you tried to sell the product or tried to surrender the policy now, it would be inside the surrender.
32:28And so one of the things that I would want to do if I were looking at these policies is I want to figure out what all of my options are. Okay, if I were to surrender today, what are the consequences of that? if I were to hold on to this policy for the next two, three, four years, what would the consequences of that be? Meaning, could I get past this$20 ,000 surrender charge to get to the other side of it and then potentially surrender? Or third, if I don't want to continue paying$630 every single month for this, are there other options? Maybe I could turn this into what's called a paid up insurance policy where I don't, maybe I don't have this amount of death benefit, but I'm going to take$100 ,000,$200 ,000 less in death benefit, but I don't have any more capital outlay.
33:08And the cash value in the policy will provide a life insurance benefit for the rest of my life. So I want to go through all of the different scenarios available with this policy and I'd line them up next to each other. I'd figure out, okay, which one of these possible scenarios most closely aligns with the things that I'm trying to achieve with my money. Anytime you have an annuity-based product, insurance-based product, something like that, you're going to want to do this because it's not a one-size-fits-all. It's not that one answer is always the right answer. But the second half of this question, Riles, what do you guys think about whole life insurance?
33:40What are your thoughts on that? I couldn't – because the question got taken down. I didn't get to see it. How much coverage was this? I don't think it said the death benefit on there. It didn't say the specific coverage. That's the thing that I think is also interesting. $630 a month is a lot of money. You think about if you were – You're putting that on a Roth IRA. And then I think about – because this – and this we'll get to what Bo's question is. is because I think I hate the question is an either or am I doing a Roth IRA, which we love Roth IRAs, or should I do life insurance? Well, we actually like life insurance.
34:11It's just we probably would have chosen a different version of life insurance initially. Because I think when you're starting out on your journey, your biggest risk to your loved ones is that you just you're not able to fulfill the promises of what your income or your future income is going to provide. um so you've got to feel something buy something that will ensure away that risk so your loved ones are left okay and that's why i like term insurance is because now it's more of a math equation of hey when how long do i have this risk her and her husband just so you're paying six hundred and thirty dollars a month for 400k well we we just did a and i didn't i didn't see their ages but i know we just did a making a millionaire where we were showing what term life insurance costs and for the wife, it was like less than$200 a year.
35:00Yeah, it was cheap, cheap, cheap. $200 for, and I think that was$750 ,000 worth of coverage for the gentleman. And they weren't like 20-year-olds. Young, young, young, yeah. He was buying$2 million of insurance and it was still well below$1 ,000 a year. So I like term insurance because now look, it doesn't have cash value. There's no investment component, but I'm okay with that because I'm just trying to buy the insurance or the protection for my loved ones so then I can get to work on building my own pot of money to be financially independent and self-insure in the future. Now, there's other components in Mrs.
35:36Sass that you got. Look, there is a true component that I don't know your health. I don't know your future health. And that's what insurance agents will scare you on that. You do need to take into account. Are you insurable? What if you're not insurable in the future? Yeah, if you're not insurable in the future. Well, this is a very personal part of it. I just think that, you know, because I think in a very orderly way, I don't typically think people starting out, meaning you have zero assets, when you're starting your wealth building journey, life insurance is not the first stop on the train stop to building my million dollar portfolio.
36:10Now, it is true that once you get super wealthy, yes, life insurance can come into play in many different facets, but it's not the component that should be the first thing that people throw out there as an investment. It's more of a protection. Think about all the insurance you know in your life, your car insurance, disability insurance. These are things you don't like to pay, but you pay because they provide you protection from catastrophic events happening. It's only life insurance that all of a sudden people go, no, it's an investment. and you're like is it a good investment though and that's and that remains to be seen especially if you're in the beginning part of your journey here's another thing that that you're like why are there so many people out there selling it well and oh you worked i mean you can you can you've worked on the in the background typically on permanent policies that are not like term and so forth in the first year premium pretty much all commission yeah you could get almost a hundred percent again depending on the company depending on where you are in your career you could get like 100 % of year one premium as a commission.
37:13So you think about it, somebody sells you a policy that's costing you$600 a month, they could be making$600 a month on that in year one, potentially. So that's what just ask yourself, what's the motivation? What, how does this intersect with your needs? And, um, but I, I liked, and kind of bringing it back to your original question, I never tell people to immediately just go surrender insurance policies because you, that's where the it depends really is very powerful because if you've been paying on this thing for years go see what that paid up because you might have some now protection for the rest of your life and it's not gonna be a ton of protection but at least now that money can you know it's paid up you don't pay any more insurance premiums on it but now you're freed up on that 6 30 to live your best life and figure out hey should i go with a portion of this buy some term insurance to increase that death benefit because now I have multiple kids and I'm worried what happens if I die prematurely.
38:08But then maybe there's enough margin on top of that that you can now go fund those Roth IRAs and make it happen. Because that's the other part I don't like about this question. If your insurance premium is so big that you're having to ask yourself, I can't fund my Roth IRA, we have a problem. Because your insurance premium should not take away all the oxygen in the room so you're not left with any wealth building capital to put to work. And look, it's not hard to go just, there's tons of tools, tons of providers where you can go run term insurance quotes to see what term should cost you versus what you're paying in whole life right now.
38:45And there are tons of options out there that you can use just to kind of give you an idea so you can see how vastly different those premium amounts are. that's great mrs sass um you said you recently found us so we're so happy to have you as part of the money guy family and i hope that helps you think through uh your insert insurance question so as a thank you and a welcome to the money guy family we'd love to send you a tumblr just email winner at moneyguy.com how about how fun is that like uh just found us and got a tumblr but a lot i've been listening to you guys for years and i can't get my question this is sass this is very special.
39:22Sometimes it's better to be lucky. Yeah. We're just, we're glad to have you. All right. Brooke is up next. It says the hubby and I are 28 and 29. We want to move next year. We would be selling our current home. Should we rely on the proceeds from the house as our down payment or should we save up on top of that? My savings rate is 25%. Okay. So this is a bit of a nuanced one. And Brooke, here's what I want you to do one thing really quickly. Very first thing I want you to do is I want you to subscribe to the channel right now because every other Monday we have a Making a Millionaire episode coming out.
40:00We actually have a few coming out. One specifically that I'm thinking about for a couple in a very similar situation trying to make a housing decision. And I want you to go watch how we counsel them on how to think through that and how to approach that. Because the question is, should I count on my home equity? Well, a lot of people have to. A lot of people, in order to be able to put a down payment on the house, I need the home equity to do that. But I don't think it's a bad idea. Whenever you're going through any sort of life transition, whether it's having a child, buying a home, moving, changing jobs, I don't think it's ever a bad idea to have a little bit of extra liquidity to help you with those unknown unknowns.
40:41Because if all you do is you say, you know what, I am going to just count on the home equity and that home equity is going to be what I use to do my down payment. And then something happens, closing gets pushed back or the inspection comes back wonky. And now all of a sudden you have to drop your sales price of your current home. Is that now going to put you in a position to where either you can't afford the new home, meaning the bank won't lend you the money or your monthly payment is going to be so big that it breaches the 25%. So there's nothing wrong with having a little bit of extra liquidity.
41:12And then in the worst case scenario, you sell the house for what you think it's going to be worth. You use that equity for the down payment, and then you have extra liquidity for the other stuff you haven't thought about, like blinds or lawnmowers or those sorts of things that tend to come with new home purchases. Yeah. I mean, I always think it ties into what Bo was just talking about. Big life moves, they're usually more expensive from a liquidity standpoint than we give it credit for. So I think having a little extra margin in your life, not the worst thing. I do like people to put down 20 % on that second home just because it keeps it in check.
41:54The big thing that I want people to understand is financial mutants and a lot of the survey and the data shows when you're trying to build assets that are working harder than you are, when you're trying to replace labor and you want your money working for you, income producing, we got to get it outside of just your home. Your net worth has to get outside of just your house. And so it's a big component that I don't want people only having housing assets and not ever funding their Roth, their 401ks and other things. So that's why the home equity, I think it's okay to let it roll forward into the new house, but then lets you keep the behavior focusing.
42:34After you get that little extra cash, because I know I'm giving you a little bit of this, but that, is you get to work as fast as possible still building up assets so that your net worth is not all on the use asset of how big your primary residence is. And also, I love the fact that you're saving 25%. Do you realize, if you go to moneyguy.com slash resources, we have a resource that says, how much should you save? Did I get it right? Is that the name of it? I think you did. How much should you save? And it shows what 25 % can do for you. If you just go look for a 28, 29 year old, which rounds up to 30, sorry, you can go see saving 25%, the trajectory that you're going to be on.
43:15If you're already doing that, there's a good chance that you're likely well ahead of the curve. So if you have to pause for a moment, just to make sure you shore things up for this new home purchase, that's okay. That's life happening. Get back to the 25 % as quickly as you can and keep rocking and rolling. Keep rocking and rolling, Brooke. Thank you for the question. I got the name right. Look at you. They sometimes forget the name of that download for some reason. You just, I don't know. Struggle with that one. It's a very popular one, though. Brooke, if you would like a MoneyGuy Tumblr, since we answered your question, we'd love to send you one.
43:50Just email winner at moneyguy.com. Hey, if we ever did do merch, are we still doing Tumblrs, or is there other merch that will start to be giving away? great question like maybe like what do you think like maybe we don't maybe we have like exclusive like q a tumblers that you only get from the q a honestly that's my reaction when we talk about merch it always like my my anxiety goes up when i start thinking about inventory it's nice when you have just tumblers sitting in the back closet and then you don't tell them where they are we're gonna have a run of the place don't tell them where we versus but you start adding hats where Where are we putting all that stuff?
44:29I have plants. You know what? I bet Reby's going to. I have plants. If this happens, I bet Reby's going to figure it out. Meanwhile, if it was up to me, I'd say, let's just do 50 shirts. And that way I can have one and then we'll sell 50 until they're gone. It's almost like you've said that before. And then the next hat I want, I'll just do, let's do 50 hats. There's got to be one with Brian. It's like his face with a mohawk and a gold chain that says. CPA life? No. I pity the fool. Right? I think we got to have that one. Oh, I thought you were going CPL. I was going Mr. T. Okay. That's not very good.
45:05That's not I pity the fool. I'm already. I'm already. I don't know. We'll see. Maybe when that turns into a shirt, we're going to put this in the marketing. I don't know. We're workshopping it. We're workshopping that one. You're witnessing brainstorming in real time. Okay. Hey, no bad ideas and brainstorming. That's right. That's what she says in our meetings. No bad ideas. All right. Want to do another question? Sure. Yes, ma 'am. We have one from Outta Here. Outta Here. Outta Here. It says, I turned 46 last week and also just inched above the$1 million mark in savings and investment, which is so exciting.
45:44Well done. It's all in target date index funds and money market funds. How do I know it's time to, quote unquote, take it to the next level? So like it does kind of feel like, hey, I've made it. Now what? You know, like what happens next? Oh, you do a good job. You always talk about there's like three key things that we see when people hire us. What are those key big questions that kind of pop up? Yeah. So generally speaking, when someone makes the decision to take the relationship to the next level, one of three, if not all of these three things happen. One, the gravity of your financial decisions becomes so great that you begin to get uncomfortable making decisions by yourself.
46:25If I make a 10 % uh-oh on$10 ,000, it's probably not going to change my life. But if I make a 10 % uh-oh on a million dollars, well, now that's substantial. That's like$100 ,000. That's like more than I save. That might be more than I make in a year. So the gravity of the decisions becomes very, very high. Number two, life and complexity just kind of find you. And you didn't realize, man, there's all these things that I didn't know that I didn't know. There's all this new stuff that's entered in that I want to make sure there aren't things that I'm missing. I want to make sure that I'm dotting every I and crossing every T.
47:01So I just want to make sure that I know the things that I should know. That's the second one. And then the third one is life just gets busy. And I know that I should update my estate documents, but gosh, it just keeps getting pushed on the back burner. Man, I started when I very began, I started using target date index funds and that was a wonderful solution. And I know that I should probably move from this generalized investment alliance to like a more specialized portfolio that has a custom allocation designed specifically for me. Oh, but I just keep not doing it. It keeps falling on the back burner and you find yourself in a place where important things end up getting on the back burner.
47:39That might be the time when it makes sense to make sure you get someone in place to help you keep things on the forefront of your mind. And I think it ties into that on account structure comes into play too. You know, it's one thing we love index target retirement funds, but there is going to come a time, especially crossing into seven figure status. You're going to be like, man, if I know I'm, I'm retiring before 59 and a half, I better make sure that I have access to some capital that's, that's going to be not going to be penalized or other things. So, and plus I'm, I don't like paying taxes to the government.
48:10it'd be nice if I could put this type of investment in this account structure and this where it's tax-free growth. I'll put growth assets over here. It'd be nice if somebody did that. And then that leads to the question. Knowledge is one thing. Implementation is a completely different thing. And I think that's one of the big elements that I'm always proud of is that we actually not only help you create the plan, but we implement the plan. And that's what a lot of successful people, it's just having somebody who will actually do the work and actually see it through the process because it's one thing just to know hey yeah i know i need to do this it's like right now i have a garage door that every morning right now i'm i'm raising and lowering this thing manually because my garage door opener is broken and um and i need to get it fixed so i'm just so busy engage the lock and you walk over and you lift it up yeah it's um it's it's a thing um and i love it's um I need to get it fixed, but I just haven't had time.
49:04And I know I'm going to hire a garage door opener repair person to come out to the house to fix it. But I just haven't had it. I don't have enough time. And I'm like, every day goes by and I'm like, how in the world did I let another day go by? And I think that that happens for a lot of us with just our finances is that we know we need to be doing some of these strategies. But we just the day gets beyond us. And then I'll tell you the fourth one. This is kind of like an honorable mention. If you're a financial mutant and you're just absolutely crushing it. but you have a significant other that just is not into the financial game like you are i want you to ask yourself what happens if you're not here to to to navigate those and make those decisions i think you'll probably have a little bit of a fear or concern that man if my spouse had to go navigate this without me not being financially minded do they know who would actually think like i think because that's what i think a lot of you guys and you that are financial mutants you're like that's what you love about us is that you're like these guys get it they think just like me, I don't need to hire them because I'm already doing everything these guys are telling me.
50:04But does that mean that that goes to your loved one as well? We have a lot of brilliant people that have hired us to essentially be the contingency plan just in case. And a lot of you are like, well, whoa, that seems like an expensive contingency plan. Yeah. I mean, when you're running, when you're the CEO of a multiple seven figure enterprise, you'll start realizing, man, there's a lot of expenses and costs that maybe it's okay to pay a little bit to make sure that this operation keeps rocking and rolling for as long as possible. Love that. Love it. Out of here. Thanks for the question. If you would like a MoneyGuy Tumblr, just email winner at moneyguy.com.
50:40It's a well-earned Tumblr. I know. Basically, let us give an infomercial on a question. That's great. I love that. I was thinking because he's crossed a million net worth. It's like a congrats to Tumblr. Oh, that's a good one. I did think that here's another little tidbit that hit me when I was reading the question. We know that it takes 27, 28 years to pimp on what year you look at the data was published for the typical millionaire on their journey once they started investing their first dollars and they're typically right around 49 years of age so well done for out of here to to reach it three years um ahead of schedule i just like that you assume that that's the accent like that's the was that an accent wasn't that an accent like a boston i was just i was just trying to add a little emphasis to it i didn't know i put an accent on it so here's my question when you leave the house do you go back into the garage to re-engage and then walk out the front door i'm gonna take the fifth because of security purposes for my house right now so let's not talk about that oh man somebody in the chat said they had the same garage door problem it's it's the i've had it before it's the most frustrating thing in the world and the garage door doesn't open it's uh i'm with you it's quite frustrating how long has this been going on it's only this week okay so it's not like it's been like weeks no i'm gonna do something look you know tuesday recording days are intense.
51:56I mean, these are my, this is my favorite day of the week is recording days. Well, we pack a lot in. It's true. But it is, I mean, but it is, it is hard in the fact that you, at the end, when we hit stop recording at the end of the day, I'm usually, I'm like mentally spent. Chest bump, high five. So it won't be today. That's probably on my Wednesday list is find a garage door. Seems reasonable, honestly. So don't come rob me today or tomorrow. You're going to rob me. Just wait till after Wednesday. Please don't come rob me. Try next week. oh my gosh maybe we should edit that out it's live great and not only is it live it's out there forever definitely getting fixed tomorrow well done brian oh man why did i use that analogy it was great it was fun i thought it was great all right are you ready for another personal finance question bo's not bo hasn't recovered but i do have one queued up from alex s it says good morning money guy team which step of the foo do you feel is the most overlooked for mutants in their 30s we like to talk about financial order of operations we like to talk about the 30s in the messy middle so what's overlooked it's two for me bo so i'll let you put the i think three and four are the first two that grabbed me And those are?
53:20High interest debt. Can you hold the thing up, Brian? Can you hold the thing up? You too can have one of these, moneyguy.com slash resources. It's for free. So you were saying you think it's three and four, which are? High interest debt. I act like I don't know what it is. High interest debt, number three, and then emergency reserves is number four. Really, it's steps one and four. But people, I think sometimes, especially financial mutants, think that cash is trash, and I just don't disagree. I don't agree with that. I think it's a combination, because you said Alex asked specifically in the 30s, and I know a thing or two about being in your 30s.
53:54And I think that what happens is, yes, there is this idea that, man, I recognize, I went to moneyguy.com slash resources, I looked at the wealth multiplier, and I know how powerful every single dollar can be in my army dollar bills. And I don't want any sitting on the sideline not growing for me. So that is one side of the equation. but there is this other side of the equation something that often happens for people in their 30s is they get into the messy metal and all of a sudden life just starts happening and out of nowhere your kid has to have six fillings even though you just tell her every night floss your teeth and brush and you try to not let her eat all the candy and stuff but she still has to have six fillings and it's just like an expensive thing and these things happen and then all of a sudden the HVAC goes out.
54:41Then you got to replace tires on the car. Well, because you've been a diligent saver, you use that emergency fund. It's what it's there for. You pull money out and you pay for the braces and you do the HVAC and you replace the tires. But what you often forget to do is double back and say, oh, I need to go build that back up. And so I had this emergency fund that was$20 ,000, but then I had 2000 go here and then a thousand over here. And then, and then before you know it, you went on that vacation or what, and your emergency fund that was supposed to be at 20 ,000 has now gotten down to like 15 ,000, 16 ,000, but you never like go back and revisit that because you left your savings the same.
55:18You still did your Ross and you still did your HSA and you still did your 401k. And then something big happened. You're like, oh no, the car just went out. I have to go replace it. I don't have an emergency fund in place. That's something I feel like I see a lot of 30-year-olds or people in their 30s fall into. So one of the things that I encourage folks to do is every single year, you ought to be doing an annual net worth statement. For sure. If you don't have a template, we have a free one at moneyguy.com slash resources. Or we have a balling one you can use at learn.moneyguy.com that is the exact same one that we use every single year.
55:54If you're doing it at least annually, one of the things that you will always be able to hold true to is when you look at your cash on there, it will cause you to answer the question, is my emergency fund fully funded? Have I actually completed and left step four completed? I think if you can do that in your 30s and really at any age, you're going to protect yourself from those unknown unknowns loans causing you to have to drastically veer off financial course i will say i stand corrected i misread the question a little bit because alex specifically said for financial mutants i think for financial mutants without a doubt it is step four and you laid out the perfect case for why that is because people is it's the trap of cash is trash or life it just takes it or your life changes you get bigger income increases your lifestyle expands and nobody ever revisits what their emergency reserves should be.
56:49When I said three and four, the general population, it's three. That is the trap that I think that if you probably look around you financial mutants and look at your peers, your friends, your family, a lot of them have consumption issues. And that's, it's not always an income issue. It's a discipline issue on their lifestyle choices. But that's not typically a financial mutant. Financial mutants are sometimes their own worst enemy by not making sure that they're keeping enough margin or reserves there so they don't have to make desperate decisions in the future. Love that. Alex S. Thank you for the question.
57:26We would love to send you a Tumblr as a special thank you. Just email winner at moneyguy.com. A lucky day to get your question answered on a Tumblr day. Let's go. As Bo alluded to, make sure you are subscribed to this channel and then go to moneyguy.com. Make sure you're subscribed to our email list because we have a lot of really fun and very interactive ways for you guys to help us shape the show coming up very soon and throughout the rest of the year so be sure to be on the lookout for that we're very excited and we love hanging out with you every tuesday at 10 a.m central and answering your questions things have been popping i mean it's been it's been kind of fun seeing the seeing where the numbers are coming in at the live streams i've they don't let me have a can i mean a computer so i have no idea if maybe only six people showed up today but but um but we love all six things have been booming recently we do not take that for granted and um i appreciate it because that's the thing that i love and it just shows the value of the messages i think people can tell we really are passionate um we did an interview you know we did went on ice coffee hour and um i don't you know i didn't agree with every comment was out there but one of the things that i did like there was a consistency was is that people could tell that we really are trying to make the world a little bit better on your decision making we we want to be play the role of educators on the wonderful world of personal finance and i think that you know i think that that's a pretty pure message that has never misserved us i mean it seems like the more we pay it out the more good things happen and that's hence this is why we call it the abundance cycle is we have never been hurt by being abundant with our knowledge as well as sharing resources and letting you become the best version of yourself.
59:08So if you resemble any of the stuffing, you start and you realize, hey, I am the CEO of a multiple seven-figure or even first seven-figure enterprise. We'd love for you to consider taking the relationship to the next level. We'll leave the porch light on for you because this thing still has a lot of gas in the tank. I mean, we are absolutely loving creating this content for you guys, creating community with you. So thank you, thank you, thank you. I'm your host, Brian, Mr. Bo, Reby, and the rest of the content team. Money Guy team, out. The Money Guy Show is hosted by Brian Presson and Bo Hanson.
59:43Brian and Bo are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the Securities and Exchange Commission in accordance and compliance with the securities laws and regulations. Abound Wealth Management does not render or offer to render personalized investment or tax advice through The Money Guy Show. The information provided is for informational purposes only, may not be suitable for all investors, and does not constitute financial, tax, investment, or legal advice. All investments involve a degree of risk, including the risk of loss.
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