This 22 Year Old Needs a Complete Financial Reset | Making a Millionaire

19:18Money Guy:Okay. And it came out to about 8 ,000. All right. A little under. So that's exciting, right? Because you were kind enough to share a budget with us, right? And when we look at your budget, it looks pretty reasonable. You say you've got$550 a month going to rent. You got car insurance. You've got the minimums you're paying on the debt. There's that horse again you're boarding. and then you got phones. So you got about like, I'm going to say$2 ,500 in fixed expenses, right? And so 8 ,000 gross coming in, $2 ,500 in fixed expenses. Check my math on this team. That's$5 ,500, right? That we have to work with.

20:00Where's that$5 ,500 going? Because like, I don't see truck insurance on here. I just see car insurance. Is that included in that? Motorcycle insurance?

20:08Money Guy:I paid my insurance premium up front for six months. Okay. And it came up to about$2 ,500. Okay. A little more. Sure. So I kind of just broke that down. No, that's great. It was about$4 ,600 a month. I mean, does that cover all the insurance for everything? Like truck, motorcycle? Okay, great. Awesome. A little more. The bike is on a separate plan. Okay. It was only like$250 for the year. Okay. So you got$8 ,000 coming in. You got$2 ,500 going out. that gives us$5 ,500. Where's the$5 ,500 going? So there is a bunch of other stuff that I couldn't, not find, but there's a bunch of other stuff that's missing.

20:51Money Guy:Like with the horse, we also do every other month, he gets massage because he's old and arthritic. I'm over here knee deep in math and I hear the horse gets a massage. I don't mean to be laughing because I like, you know, No, it's, yeah, it's a horse massage. How much are horse massages going for these days? About$100. $100 every two months. Yes. Every two months. Okay. Like I said, she's hard to say no to. Okay, so$100 every, so that's 50. Okay, we count. So from$5 ,500, we're at$50. Keep going. I do put significantly more than my debt minimums into my debts. Okay. So I am really focused on chipping that away.

21:35How much is significantly more? Probably an additional$500 a month.

21:43Money Guy:We're at$550, so now we're at$4 ,950 left over. Don't see it on there, but putting money away for saving and investing and stuff. No, that's what's going to be left over. That's what we're trying to figure out. That ain't in here so far. Because you've been making money for a while, and what you're telling me is, hey, I have this desire. my number one biggest goal is to wipe out debt in the next seven months. If I go back to your net worth statement, I can see that right now your total debt load is about$15 ,000. What this tells me is if your fixed expenses are$2 ,500 and you have$5 ,500 extra coming in, if you actually got serious about it and you really put your mind to it, you could knock out this debt in the next three months.

22:30What I'm trying to figure out is, Is that realistic or is there more money flying out than we're talking about here?

22:36Money Guy:There's definitely more money flying out. I see it and then I don't. Peter, we got to get you. We got to get a – because, you know, behaviorally we need to have a reset because – Do you do any – do you do any tracking? Do you use a Monarch? Do you use any – That's one of the things I wanted to talk to you guys about. I used to be pretty good with money, but it was hard to be good with money that you didn't have. and now I have money and I don't know where it went. You don't have money. You have income coming in. I have income. But it's quickly turning into expenses. And I just want to give you, and Monarch would be a great start, you know, just so, because you need to gamify your life.

23:13I think you're very goal-driven or you like to hustle and make stuff happen. But I need you to kind of have perspective of what the potential is that you're dealing with here. So I'm not picking on everything because we could put the horse and the horse is probably a multi-million dollar decision just upon itself. But we'll come back to that. And I'm not trying to hurt because I love pets. Yeah, of course. My wife's dog, I think my wife loves the dog more than me, but potentially. So, I mean, I'm not going to make you, we're not telling you to go take and do something, you know, to make the horse go away.

23:45But it is something you need to have some perspective on because let's go through each of these. The quad, you were 20 years old. You spent$9 ,000. Your wealth multiplier was$88.3. That one decision alone against your future self is$795 ,000. Three quarters of a million dollars. And look, I want you to make memories with your family, but this ought to be one of those things where I used to do shows called Financial Mistakes You Hope Your Friends Make. Yeah. You want to find out that a cousin or somebody can't use their quad because they're going to do something that weekend, and then they let Peter ride their quad.

24:22that would have been a much better use than you going and taking$795 ,000 from your future self. The motorcycle. Now, look, this one, I'm not going to pick on you too much because it was$750. It's worth supposedly more than that. But just if I'm staying with the drill here, you bought that when you were 22. The wealth multiplier on that is 66 and a half. That's$50 ,000. I'm going to argue that should not even be on your net worth statement because that's a hobby. Yeah, right. If you spent$500 on a hobby, you put$250 on the hobby, and now you get to ride the hobby around. That's not a vehicle. That's just a hobby thing.

24:58I'm running an educational exercise here. And then truck. Now, look, trucks generate money if you're going out and getting jobs. So this one, but it's still to finish the drill. You bought that when you're 21. Your wealth multiplier was 76.56. So that decision is$957 ,000 from your future. The car, your wealth multiplier when you're 22 is 66 and a half. That car costs you$200 ,000 from your future self. If you add all those up, it's right at$2 million. So every time you make a consumption decision, now look, it can have a purpose like a truck who's taking you to your job because that's why we have 23.8, is sometimes you have to take on debt.

25:37You have to do things to get to your first wealth builder, which is your income provider. But that's not built into the quad. That's not built in. And so you need to get serious while you're – because you're in the perfect stage where you just do something with this level of income and your drive and your hustle. It's going to turn into magical stuff. Instead of this stuff working against you of what you cost yourself, this could turn into what your wealth multiplier has actually built for your future. We just got to change your perspective so that you don't look back and go, man, I made great income when I was in my 20s.

26:11but it never manifested or turned into a contraction and turned into actually wealth for me. Because there's a big difference between having good income, which I think in the world, we consider that rich versus becoming truly wealthy. And it's much better to actually have assets or to be rich than to look rich. And I think we got to get you working on that because your time is so valuable right now. And you combine your time, because you're a billionaire hour of time with your work ethic, man, oh man, I think you, you know, you could go buy quads, you could buy boats, you could do anything you want, but you got to put the work in first.

26:54There's a time and a place. We all have that dream trip we've been wishing we could go on, but too often life or usually price gets in the way. That's why Priceline is here to help you turn your dream trip into reality. With up to 60 % off hotels and up to 50 % off flights, you can book everything you need for your next adventure. Don't just dream about that next trip. Book it with Priceline. Download the Priceline app or visit Priceline.com and book your next trip today. Go to your happy price. Priceline. This episode is brought to you by Indeed. Stop waiting around for the perfect candidate.

27:31Instead, use Indeed-sponsored jobs to find the right people with the right skills fast. It's a simple way to make sure your listing is the first candidate C. According to Indeed data, sponsored jobs have four times more applicants than non-sponsored jobs. So go build your dream team today with Indeed. Get a$75 sponsored job credit at indeed.com slash podcast. Terms and conditions apply.

27:53Money Guy:So one of my biggest things that kind of happened, not happened, but that was going through my head when I was younger and kind of made all these rash decisions, was that like up until a few years ago, my biggest focus was just surviving and getting through day to day. And once I started making money, I'm torn between you only live once, I'm only gonna be 22 years old once, while simultaneously planning for my future. But like I said, I just sort of kind of snapped into this mindset once I found your guys' show. And I feel like as a person, I've grown a lot and just matured a lot since I have started listening to your guys' show.

28:36Money Guy:I want to fix this because I know I could be in a much better position if I put myself in it. Well, and I think that's the realization right there. Because there are a lot of people that are going to watch this and be like, holy cow, I make substantially less than Peter makes. And I'm doing a lot more with it. And I'm able to build a lot more with it. You have a ton of opportunity, but you got to get serious about it. You got to think, okay. And you don't have to think about what I want my future financially independent self to look like. You're close enough. You can say, what do I want my 30-year-old self to look like?

29:04Exactly. At 30, do I still want to be living paycheck to paycheck? Do I still want to be saying, oh, man, when I ask you, hey, where's this$5 ,500 going? You're like, oh, well, I see it, and then I don't see it. That is not commanding your army of dollar bills. You've done one of the hardest things in the world, which is creating a big shovel. The hard part is making the income. Now you've got to finish the drill and figure out, how do I actually turn that income into wealth? but I can already tell you there's going to have to be some consumption changes. There's going to have to be some discipline changes because while you have, when we think about the three ingredients of wealth creation, you have time in spades, right?

29:43Like you get so much of that. You have to increase how much discipline you have in your life. And I don't even mean around like not buying stuff. I'm like, hey, I'm actually going to get serious about understanding where my money's going. I'm going to go use, I'm going to download the Monarch Money app and I'm going to go sync up my credit cards. I'm going to sync up my checkout. And every single month, I'm going to be meticulous about where is my money going? I'm going to go use YNAB. You need a budget. Like there are tons of free resources out there where you, in today's day and age, there is no excuse for us not to know where our dollars go.

30:19Right. And if you're going to meaningfully change the way your financial situation looks, you have to understand where these dollars are going so that you can appropriately redirect them into the places where they should be going. And it's not quads and horses. Yes. Right? It should be at your income, you need more than a$1 ,000 emergency fund. Yeah. Like you said that— Do you have health insurance, by the way? Yes. Okay. All right. I'm proud of you. Because you are dealing with some dangerous activities. I just want to make sure that you're not sitting out there uncovered on that.

30:53Money Guy:I have a very, very good plan offered by my employer as well as a pension. I love that. And I think that's awesome. And that's going to be super exciting. And we hardly ever say this. But even I think that is a few steps down the road from where you are right now. I think before I can even start thinking about, okay, well, how's the pension work and what's going on there? You are at like the very base level of personal finance. You were at the very, very beginning. And the very, very beginning of personal finance is understanding what's coming in and what's going out. And if we start at the very beginning, a$1 ,000 emergency fund, that's not it.

31:35Money Guy:Right. Right? Like I said, I had that up to probably$7 ,000 realistically, but I put most of that into my debts. You know what that means? It means you have$1 ,000 in your emergency. Right. I understand what you did with it, right? And I totally get that. But when I think about, man, okay, if I have$2 ,500 of fixed expenses, I have this other$5 ,000, my immediate first priority is like, okay, what happens if that unknown unknown thing happens? And that's all I've got. Okay. What's your deductible on your vehicles? I believe$1 ,500. Okay. So there's$1 ,500. So, I mean, that's - That's probably the one.

32:13That's at least, that's potentially your step number one is your vehicle deductible. So at the moment, I do have$2 ,000 in my emergency fund.

32:21Money Guy:What I've been doing is I've been putting away$150 automatically out of every check into a high-yield savings account. Great. And letting that build up to$2 ,000, then I put that$1 ,000 into a loan. And then I keep that$1 ,000 and then build up to$2 ,000 again. That's kind of where I was at. That's what I thought made sense so that I still had a little bit of cushion, but still focusing on that high interest debt. This company that you work for, you said there's a pension that you're all about for. They also have like a defined contribution plan, like a 401k or something like that. Are you sure it's a pension or are you sure it's not a 401k?

32:57Money Guy:It's just a 401k. It's not a 401k, it's just a pension. That's so unique. So if we're thinking about the financial world of operations and we just decided that, okay, 1 ,500 is your highest deductible, is what it seems like. There's no employer sponsor retirement plan. Well, then we do get to step three, high interest debt. And that is where I do think that you are likely doing the right thing, but$1 ,000 probably is not it. It probably is$1 ,500 or whatever the deductible would be. But I think if I were in your situation, I would get militant about my spending. Because when I look at these two loans that you have sitting out there, one at 11.2 % and the other at 9.5%, those, I think, count as high interest.

33:40This truck loan you said has been sitting around for the last three years. Almost three years now. So we're like outside of 23 ,800 at this point. And also, I heard you say earlier that you have this whole FOMO feeling of you're only going to be 22 once. The cool thing with your income, there ain't much FOMO to leave on the table if you make the level of income you have with only$15 ,000 of debt. I mean, you can buckle up for two months and extinguish this and then move on to the next thing. And that's the biggest thing that we want for you is that we want you to kind of have a set it and forget it.

34:14So then you can go spin recklessly and not feel guilty about it because you will have already done what you need to for yourself. But you're kind of – if you don't do that, I think you're going to have the worst part of what I see on the other side of somebody who's got FOMO or feeling like they're only going to be 22 because you're doing hard work. And look, I know the machines do a lot of it, but you're still getting out there and getting with it. I mean, and that's, when you get to be my age in your 50s, you're not going to, you're just not going to have, I hate to put it out there, but you're not going to have the same hustle.

34:48Right. So you got to have an army of dollars that you did something while you're at the hustle age that you're at, because you'll get to my age and be like, yeah, life's kicking my butt if I don't figure out another way to make this work. Now, hopefully, if you've done this right, You'll have crews. You'll have everything working for you. But I just don't want you to have regrets in the future.

35:09Money Guy:So, like I said before, I did have a significant amount of stuff break down within my company, which really hurt me financially. But I realized it's a part of it. I'm prepared to make those sacrifices. And then I also had some issues with my truck that I also had to fix. So, the truck was about$1 ,000 that I had to fix. Well, you're getting right into, once again, brilliantly built into the financial order of operations. Once we get that$15 ,000 of debt paid off, now we get into the true emergency reserves. Right. And that's where we get three to six months. So that emergencies don't hurt. Exactly.

35:48So you have the margin in your life to cover all the truck repairs, the horse vet massage bills, and all the other stuff. But the problem is because you're – and that's what I still think that there's consumption going on beyond even horse massages. Yeah, absolutely. I mean, that's why I'd be curious because, look, I've had friends like you. I think I've mentioned one of my best friends in the world. I graduated from an accounting degree, and I was making$28 ,000 a year. He was making already six figures selling tractors. Right. I mean, I was shocked because he was the greatest talker I had ever met in my life.

36:25and that personality translated perfectly into selling tractor sales in his early 20s. And he was always the most, he's the loudest personality in the room. He's buying drinks for everybody. He's doing, so I think sometimes when you're young and you got it coming in, do you find yourself doing a lot for everybody because you feel like, hey, it's coming in, why not?

36:45Money Guy:Sometimes, but I don't do it from the standpoint of not boasting. Oh, he wasn't boasting. I'm still good friends with him. I love him to death. He's just a good time. That's not what I mean. I just like, not that I'm like flaunting it to my people, but like I do want to take care of everyone. And sometimes I probably do put myself out there more than I should. But you have to put on your oxygen mask before you can put on somebody else's. And I would argue that right now you have the ability to put on your oxygen mask, but you're not there yet. You're not in the position where you can be able to do that for other folks because you haven't shored up your financial foundation just yet.

37:28Money Guy:I want to get it under control. I realize the possibilities that I've already lost out on. I don't want to lose out on any more. But again, at 2022, it's okay. All the stuff before doesn't matter a ton because you have so much time ahead. Right. What do you guys recommend for splitting the 25 % savings rate? I don't really have a set number that I put into investments or any mutual funds or anything like that. I just kind of, if I have it, I move it. I think, honest opinion right now, I think you're completely out of whack. Meaning, let the financial order of operations be your guide. You shouldn't split up your 25 % at all yet on investments because you ought to be knocking out the debt.

38:11And I mean, like relentlessly and aggressively, every extra dollar you can put together should go towards that debt. And the sooner you do that, the sooner then you can increase the 150 that's going into the emergency fund, the sooner then you can get the emergency fund fully built up, and then you can get to the 25%. But you're thinking about step seven, really, when you aren't even done with step three. You might not be done with step one. So you got to do that first. That's why we designed the financial order operations, what to do with your next dollar. And we've got enough for you that the next six months ought to be you just going, what's next on the list?

38:53That's right. And we could get you there. And then I think this is going to get some muscle memory, and it's going to become automatic for the people for you once you set up these automatic investment account builders. And then you're going to be like, what was I thinking? Then you can fill, you can go spend money on your girlfriend, you can spend money on the horses and the weekends with the family. Not horses, just one horse, one horse. But you will completely be freed because you won't be faking it until you make it. Because right now you have this income, but tomorrow is not promised. Because that's the thing.

39:24When people tell me I'm only going to be 22 once, I'm like, yeah, but you're probably only going to be 22 once making this type of money. If you don't have a fear about that, because that's the part that I feel like needs a lot of love just from a personal behavior standpoint.

39:43Money Guy:Yeah. Like I said, I do plan on selling the truck and the quad. My hope for next year is that I do need a$2 ,500 for my company, but I'm not worrying about that just yet. I want to get rid of my debt. I want to get myself situated because once I sell the quad and I sell the truck, I'll be able to get pretty much all of that debt gone. Can I give you some tough love on this buying a$2 ,500 though? is your biggest provider of income is this job though. Do they require 2 ,500? No. So it's you doing the side hustles and other things. And if you, so. I would like to lean away from the landscaping portion and do more excavation on my own and kind of focus more on that because that's where the money is.

40:33Money Guy:It's not in doing$50 lawns. It's getting the drainage jobs and the trenches and all that. But I don't want you to aspirationally go buy the biggest truck you potentially could ever need for something that doesn't turn into the money producer you think it is. It's more of a dream than a reality because your biggest producer is at J-O-B right now. And that's the thing. So I worry because we can do some false mental accounting where we think, hey, I can go buy this$2 ,500 and that's going to cost me. I mean, what does that even cost? $8 ,500? $100 ,000? What is it? What was it? I'm definitely not doing brand new.

41:12Okay. So even in your mindset, what would this$2 ,500 cost?

41:18Money Guy:If I were to do this, like I said, this is all just kind of thoughts getting thrown around. I'd probably be looking at about$20. On a realistic, fair number, I'd probably be looking at about$20. See, I would challenge you if it's knowing it's that reasonable. This just needs to be after you're funding your Roth IRA and those type of things. you can set up and expand. When we have your emergency reserves and we say we want you to have three to six months, you could push that emergency reserves bigger to have an earmark and maybe a monthly budget for that you're going to start having a sinking fund for saving for this$2 ,500.

41:56And at that price, you could, I mean, that could be something that six months in the future, you would have it. Because does your current truck work right now? Does it work for the construction job? Is it suitable for the construction job you're doing?

42:07Money Guy:It's suitable for what I'm doing at the moment and the type of equipment I have and need to trailer. But the truck has issues. Don't go squeeze or fake it if you don't necessarily. Don't turn a want into a need artificially is really what I'm trying to get your mind set up. Absolutely. And then there's also been the other idea. because since this job has been so good to me, I have been throwing the idea around of liquidating and just kind of absolving my business. Putting everything into the current day job. Yes. Because if I could get Saturday or Sunday work at my full-time job, that would be an insane difference in pay.

42:55You're going to make a lot more work on Saturdays with your day job than you are doing your side gig.

43:00Money Guy:With the overtime, it would be unreal. See, and this is something – I'm going to sound like an old man on the front porch here a little bit because I'm an entrepreneur. I've got multiple businesses. Bo and I have built multiple businesses now. And I feel like there's so much hustle culture out there that they tell people go out there and start your business ASAP. But the problem is – and I'm all for it. I mean I would be a hypocrite if I didn't. But if you don't, the biggest problem I see with businesses, small businesses, they are underfunded. They don't have enough cash reserves. They don't have enough money in the bank to give them an actual viable option to be successful.

43:38They're more passion. They're more dream than they are reality. I feel like as a 22-year-old, you're trying to make this stuff happen. But all you're probably doing is working against your day job to some degree. and you're not giving the dream of the entrepreneurship even an opportunity to take root because it's so poorly funded that it never, it's all aspirational. And it probably is cool at the bar with your friends when you get to say, hey, I got another gig, I got this and that, but it's not actually getting traction. Whereas if you actually threw your heart into the job, making as much money as possible, but still enjoying life, don't mishear me.

44:16I'm not trying to turn you into this miserable person that only works. But if that money caught traction built up in the background, then if you ever said, you know what, I think I want to be my own boss. But maybe you're 27, 28, 29. Somewhere in there, you still can be a young person doing this. But if you have enough money behind you, now this dream actually is not aspirational anymore. It actually might pop because you can go buy a full, you know, the$2 ,500. You can buy the reliable trailer. You can put the equipment on it. You can do everything. But right now, this is more of a dream or a mirage than it is of a reality of life.

45:00And on top of that, I 100 % take my music.

45:06Money Guy:I 100 % prioritize my music over my landscaping excavation company. Well, that's the other thing. You're cannibalizing this other thing, this passion, this hobby that potentially could—I never take—living in this town, I don't steal anybody's dreams. If you want to—you got the energy, you're 22 years old, go out there and let's see if we hit a lick with something pops with the music career. That's one more reason not to do this fake entrepreneurship that's taken away from a lot of stuff. I do really enjoy, not so much the fact that I'm my own boss. I mean, obviously, who doesn't want to be their own boss?

45:48Money Guy:But I do really enjoy making those connections and being able to help out and provide good work. I take a lot of pride in the work that I do. Just because it might be no to being a small business owner operating your own thing right now doesn't mean it's no forever. Absolutely. We have to think about what's the best use of my time, what's the best use of my resources, what's going to put me in the best place long term. Being your own boss today might not be that, but at 30, it might be. And so that's something, I'll be honest, I think we've got a lot of stuff to work with here. What I'm hearing is you're malleable.

46:23So as we put together a plan and hey, I would consider this and maybe think about this and maybe move this over here. I think that we could put together a strategy that likely a year from now, which have you in a completely different situation.

46:36Money Guy:And that's why I'm here. you know like I said ever since I found your guys a show like I feel like I'm a different person but I realized I still got a long way to go you know even working seven days a week you know 70 hours a week I feel like there's still more I could be doing but I'd rather spend less time and be more efficient with it so I have more time for myself and you know I don't want to work like this forever yeah you won't be able to I've been working full-time since I was 14 right so it's I I mean, everyone says I'm young. You got a work ethic. I mean, you got all the right pieces.

47:11It's just making sure that it's turning into fruit and not getting busy doing nothing. I know you've let us know what your biggest goals are. Hey, I want to wipe out the debt in seven months. I want to feel in control of my financial situation. I'd like to be more efficient, more effective with the effort that I'm putting into my financial life. Have we heard you correctly on that? Yes, and my time. And your time. Awesome. All right, I'm excited to get to work. Brian, what an awesome conversation with Peter, sort of. I mean, it's awesome in the sense that there is a lot of opportunity, but in my opinion, I don't think he's quite there just yet.

47:47Well, I'm going to be honest. This is one that I found myself driving home from that recording day, and I felt like I failed Peter. Tell me more. Let me tell you why I say this. Because Peter is working. He's doing a lot of things right in the fact that he's got a big shovel He's got a good income, but man, oh man, he's going down a dark path that if he's not careful, it reminded me of years ago when I used to work with professional athletes. A lot of these football players, basketball players, and baseball players I worked with, they just assume that they're spending and building their life assuming they'll have this big shovel of income for years to come.

48:28And what I think Peter is not catching on to is that he's got a limited window that he can hustle and go at it like he is right now. And if he doesn't start turning that human capital and his youth and time that he has in abundance right now into actual working capital, meaning assets that show up on his net worth statement, he's going to end up being a person that's a cautionary woeful tale of great income, great opportunity, all the resources and things that could come his way, but he never actually turned it into something. And maybe I'm being too hard on myself, but that's the way. When I was driving home, I was like, I need to tell Peter, get on ASAP.

49:13Start turning your good income into assets on your net worth statement because owning stuff is what's going to get him through this. I agree with you there. I think, but here's the thing. Peter's young and he's a hustler. What I worry about with Peter is he's putting all of his effort and attention in the wrong area and he's not focusing on the right things. I agree with you. He needs to figure out how to turn his income into assets, but I think he's just getting distracted at the stuff that he doesn't need to be getting distracted with. He's doing, I think he's following prey too. He's doing what he thinks successful is.

49:46Because think about, he's got the work truck. He's got, you know, he's trying to run three different companies. It feels like he's buying equipment and doing all these things. In a lot of ways, I think he's trying to pretend to be successful without really seeing that the engine of his success is probably that high-paying job that doesn't even require the trucks and all the other things. And I was also troubled. Peter doesn't know where his money's going. Well, I feel like that was the biggest gaping hole. We've already said, you know, Peter had a great income. He said he's making about$8 ,000 a month coming in, which is unbelievable.

50:23Especially at his age, 22. Exactly. But we could only account for about$2 ,500. That leaves a big gap, like$5 ,500 that is completely unaccounted for. And if you want to be able to command your army of dollar bills, you have to know where it's going and know what cracks your money's falling through. And I feel like Peter just didn't recognize that. And so when I think about the one thing he's got to figure out, he's got to figure out where his money is actually going on a month-over-month basis. Well, that's why I think what I love is now we get to say just a reasonable portion of this unidentified amount of money.

50:58He doesn't know where it's going. If we just put some of that to work, I think amazing things will happen. Yeah, I think the very first thing I would tell him to do is he's got to figure out, and it's so easy. Technology's made it super, super easy. go get some sort of budget tracker, some sort of app, download that and start tracking where your money's going. And then he would at least know where it's going. Because we said, okay, if Peter knows that he's got$2 ,500 of fixed expenses, let's just go ahead and be very, very generous and say that he had another$2 ,500 of variable expenses going somewhere.

51:29Well, if that were the case,$2 ,500 and fixed,$2 ,500 and variable, that still gives him$3 ,000 of margin on a monthly basis to be able to fund some of these other goals. If he had that money, he knew he could put it in the places that it needs to go. There are some exciting things he'd be able to do with those. So I think we're on the same page as that he's probably going to wrap up the construction business or at least put a pin in it, deposit it right now, sell the truck. I think so. I mean, what are we doing with this? And then knock out all the additional debt that he has going on. And then don't just take for granted that he doesn't need an emergency fund.

52:03That's right. I mean, he probably should lean into the emergency fund a little bit more too. If he were to do these things and he were to move in this timeline, we think that it would probably take about six months to completely right his ship and get into like a fantastic financial situation to where then he could start building for the future. Because we said, all right, what if Peter did this? He took the next six months, really got serious about it, and we just assumed, okay, based off of his gross pay, what if he saved 25 % like we said? What if he saved$2 ,000 a month for the future? Right.

52:33What's interesting is if Peter were to just do that, because he's so young, it does not take a lot. Even though$2 ,000 a month is a lot, it does not take a lot. Peter doesn't have to think about being like a millionaire or a two-millionaire, a five-millionaire. His picture actually gets unbelievable because if he can save at that clip starting at this age, he'll cross over into millionaire status by the time he hits 40. And then if he can save at that clip from now all the way until he gets out to actual retirement age, actual age 65, he could be looking at a portfolio of like$14 million of assets actually working for him.

53:13It's kind of hard to believe that he can become a decamillionaire, still afford all the horse massages that him and his significant other have decided is important for him. But the big thing, he's got to do something because he's got shovel, he's got time on his side, but if he doesn't actually start turning that into assets that are showing up on his annual net worth statement, this is all just made up stuff. Again, I think he's got the right ingredients. He has the time, he has the hustle, he has the work ethic, he has those sorts of things. But what he has not figured out is how to put those ingredients together in a really good recipe.

53:48And to be true to himself that, man, I don't want to say lazy, that's too aggressive of a word. No, he's definitely not lazy. But I need to be more intentional. He's just kind of out there floating. And I think with some intentionality, he can turn his financial life around and really set himself up well. So if I'm thinking about next steps or the homework items for him, number one, I think starting to budget is like the very first starting point. He can go out and use Monarch. He can use YNAB. He can download. He can do a spreadsheet. He can track receipts. Whatever his thing is, if he can start budgeting and understanding where his money is going, that's going to be the first step in the right direction of doing what he needs to do.

54:26Well, also paying off the debt. I mean, he's paying 11.2%. That's turning compounding interest completely upside down. So if he could get ahead of that, I think it's going to help him out tremendously too. And then again, we've already acknowledged this over and over. He's such a hard worker, but I don't think he recognizes the value of his time. He's trying to make this like side construction business work, when in reality, it's really just kind of sucking resources away from him. I would think maybe shutter that business for now, focus on the day job, understand that if you're passionate about music, that's something you can pursue, but you can't have all these passions at once, especially when you have this opportunity in your day job to make really, really good money, be able to put that money to work and not have your hobbies pulling away from you.

55:08Well, what I think is interesting is that hopefully Peter will hear this well. He's doing all this hustling, and nothing's showing up really on that worst statement like it should. But yet he wanted to make sure when he left, he was like, hey, can I play a song for you guys? So he's obviously very passionate about the music because I thought it was pretty— And here we are in Nashville, and he plays Johnny Cash. That's right. And right out of the box with that. but this plan that we just put together with the homework is going to let him focus on keeping the day job, saving and investing, and probably because he's not running around doing all this wannabe entrepreneurship stuff, he can now do more of the music and see where that goes as well and pursue that passion.

55:50I think that's a win-win. So get to stacking, Peter. I think one of the huge things that young people have is they have all this time at their disposal. That's the most valuable resource, but so often that time just gets sucked away with distractions. And I think that he is going to have to be very mindful to not let himself get distracted and just like you said, get really, really busy doing a whole lot of nothing. So my hope for Peter is either he becomes a famous country musician, but if that doesn't work out, hopefully we've given him enough groundwork in the background that if he can just be disciplined with his young age, he's going to have all of his financial needs met and he's going to live the best life ever.

56:26I love that he found us now. I love that he was able to come on Making a Millionaire right now. If you would like to be a guest on Making a Millionaire, you would like to tell your story, we would love for you to go to moneyguy.com slash apply. Or if you want to check out any of our resources, any of our tools, you can go to moneyguy.com slash resources. This was a lot of fun. I'm hoping that Peter will listen to us. Guys, I'm your host, Brian, joined by Mr. Bo. Money Guy team, out. Making a Millionaire is hosted by Brian Preston and Bo Hanson. Brian and Bo are partners at Abound Wealth Management.

57:02Abound 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 making a millionaire. 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. The guests featured on Making a Millionaire are not clients of Abound Wealth Management at the time of recording.

57:33Their participation should not be considered a testimonial or endorsement of Abound Wealth Management.

57:55with up to$3 million in coverage. I'm so relieved. No problem. I'll be with you every step of the way. One in four was a fraud-paying American. Not anymore. Save up to 40 % your first year. Visit lifelock.com slash podcast. Terms apply. Burnout Paradise is hailed as the wildest night out in New York City by Time Out New York. Now off-Broadway at the Astor Place Theater, it's a live show you'll never forget as the people on stage make a desperate attempt to complete a series of escalating tasks all while running on treadmills and if they don't complete their to-do list in one hour's time you can get your money back get tickets today at burnoutparadise.com