The Personal Finance Masterclass with Brian Preston and Bo Hanson (From The Money Guy Show!)
Oct 16, 2023
auto_awesome
Brian Preston and Bo Hanson from The Money Guy Show discuss the significance of life insurance and the advantages of Chime's Online Checking Account. They delve into building wealth, navigating the financial world, and the concept of the Wealth Multiplier. They emphasize the power of compound interest and utilizing 401k accounts. Tracking net worth is highlighted as crucial in personal finance, along with finding the right business partner and filtering out bad financial advice.
Tracking net worth serves as a communication tool, provides a clear picture of financial progress, and motivates wealth-building.
Following the financial order of operations helps prioritize actions and build a solid foundation for long-term financial success.
Filtering financial advice on TikTok requires considering credentials, cross-referencing information, and seeking advice from certified professionals.
Deep dives
The Importance of Tracking Net Worth
Tracking net worth is important for several reasons. Firstly, it serves as a communication tool, allowing individuals to review their financial situation and goals with their spouse or partner. Secondly, it provides a clear picture of one's financial progress and helps determine if they are on track to meet their financial goals. Thirdly, tracking net worth allows individuals to identify areas of improvement and make necessary adjustments to their financial strategies. It also serves as a scorecard for one's financial health and provides motivation to continue building wealth.
The Financial Order of Operations
The financial order of operations, or FOO, is a framework that outlines the sequential steps individuals should take to manage their finances effectively. It helps prioritize actions based on their financial impact. The FOO typically involves steps such as creating an emergency fund, paying off high-interest debt, maximizing employer retirement contributions, and investing in low-cost diversified index funds. Following this order of operations ensures individuals are making sound financial decisions and building a solid foundation for long-term financial success.
Filtering Out Noise on TikTok
Navigating financial advice on TikTok can be challenging due to the abundance of misinformation. To filter out the noise, it's essential to consider the credentials and expertise of the individuals providing the advice. Look for content creators who have relevant qualifications or experience in the financial field. Be cautious of self-proclaimed experts who lack credibility. It's also beneficial to cross-reference information with trusted sources and seek advice from certified financial professionals. By critically evaluating the source of financial advice on TikTok, one can make informed decisions and avoid potentially harmful recommendations.
The Financial Order of Operations: Key Points
The podcast episode discusses the nine-step financial order of operations. The first main point is the importance of having a high deductible covered to protect against financial emergencies. The second main point emphasizes the value of employer matches in retirement accounts as free money. The episode also highlights the significance of paying off high-interest debt and building emergency reserves. It further explores the advantages of investing in Roth and HSA accounts for tax-free growth. The podcast emphasizes maximizing retirement accounts and planning for future expenses and goals. Lastly, it touches on the benefits of low-interest debt and the potential dangers of ignoring it.
Insights from "The Millionaire Next Door" & Importance of Purpose
The podcast episode discusses the impact of the book 'The Millionaire Next Door' and highlights its key lessons. It emphasizes the power of stealth wealth and how wealth is separate from material possessions. The episode highlights the importance of raising self-sufficient children and having a clear purpose beyond material possessions. Additionally, the hosts stress the significance of understanding one's 'why' and finding purpose beyond the pursuit of money. They also mention that wealth is when money and purpose align, allowing individuals to live life on their terms and focus on what truly matters.
In this episode of the Personal Finance Podcast, we're going to talk to Brian Preston and Bo Hanson from the money guy show about the ultimate personal finance masterclass.
How Andrew Can Help You:
Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here!
Learn to invest by joining Index Fund Pro! This is Andrew’s course teaching you how to invest!
Thanks to Our Amazing Sponsors for supporting The Personal Finance Podcast.
Shopify: Shopify makes it so easy to sell. Sign up for a one-dollar-per-month trial period at shopify.com/pfp
Chime: Start your credit journey with Chime. Sign-up takes only two minutes and doesn’t affect your credit score. Get started at chime.com/
Listen to Planet Money wherever you get your podcasts.
Policygenius: This is where I got my term life insurance. Policygenius is made so easy. To get your term policy go to policygenius.com and make sure your loved ones are safe.
