BiggerPockets Money Podcast

531: Financial Freedom in 9 Steps: The Money Guy’s Financial Order of Operations

May 24, 2024

Brian Preston and Bo Hanson from The Money Guy Show share a nine-step financial order of operations for achieving FIRE. They discuss building emergency reserves, paying off debt, hyper accumulation, and debunk mortgage myths. The episode covers why a $1,000 emergency fund is not enough and the importance of making smart financial decisions to reach financial independence.

57:32

Episode guests

Bo Hanson

Brian Preston

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Quick takeaways

Follow the financial order of operations to achieve financial independence systematically.

Develop a 'financial mutant' mindset by understanding the potential of every dollar.

Strategic financial planning is crucial for effective wealth accumulation and long-term success.

Sequence major financial decisions and events based on personal goals and situational context.

Deep dives

Financial Order of Operations with Brian and Bo

Brian Preston and Bo Hanson introduce a nine-step method called the financial order of operations. This system emphasizes the importance of tackling financial steps in a specific sequence to achieve wealth building and financial independence. The system starts with covering high deductibles, moves on to taking advantage of employer matches, and prioritizes avoiding or paying off high-interest debt before progressing to other financial goals. The focus is on creating a solid financial foundation that allows for personalization and long-term financial success.

Understanding High Interest Rates on Mortgages

02:28

Managing Interest Rates and Mortgage Payments

01:19

The Risk of Leverage Debt and Desperate Financial Decisions

01:07

The Case for Paying Off Your Mortgage Early for Financial Independence

02:10

Introduction

2min

Becoming a Financial Mutant and the Order of Operations for Wealth Building

3min

Building Wealth Through Smart Financial Decisions

5min

Safeguarding Against Catastrophic Events

6min

Navigating Interest Rates and Mortgages in Personal Finance

14min

Building a Financial Foundation for Wealth Building Opportunities

7min

Strategic Financial Planning for Independence

17min

Debunking Mortgage Myths and Millionaire Strategies

4min

Wrapping Up the Episode with Gratitude and Military Appreciation

2min

If you follow these nine steps, you will reach financial independence. How do we know? Well, The Money Guy Show’s Brian Preston and Bo Hanson have tested it hundreds of times! Using this simple but extremely powerful “financial order of operations,” anyone from any background can achieve FIRE, even starting with nothing. From free money to becoming easily debt-free, building a solid financial foundation, and even paying off your mortgage early, Brian and Bo break down the exact route to financial freedom anyone can take.

But first, we’ll discover if you’re a “financial mutant.” The fact that you’re listening to BiggerPockets Money already proves that you might be. But for those who have struggled with high-interest credit card debt, low savings, and lackluster investing, this episode has EVERYTHING you need to become a financial powerhouse by making nine smart money moves.

We’ll walk through the entire financial order of operations, from saving money to cover your deductibles to building an emergency reserve, paying off bad debt, and the “hyper-accumulation” stage you must reach to watch your net worth explode. If you’re ready to take the steps to realize financial freedom in the not-so-distant future, stay with us and grab Brian’s newest book, Millionaire Mission!

In This Episode We Cover

The nine-step "financial order of operations" that will lead you to financial independence

Why building a $1,000 emergency fund is NOT enough and how much you really need

Whether or not to pay off your “high-interest” debt depending on your age

Why Brian and Bo advise people NOT to invest in real estate until they’re at THIS stage

The one investment account to max out before all the rest (it’s NOT your 401(k)!)

The “hyper-accumulation” stage that will explode your wealth (IF you can reach it)

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding