Money Guy Show How to Adapt When Your Income is Cut In Half | Making a Millionaire
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Nov 24, 2025 After a major income cut, Rachel dives into reconfiguring her finances. She explores how to balance generous giving with building lasting wealth. The hosts help her reassess financial priorities and the implications of a low mortgage rate on her long-term strategy. They discuss the importance of structural changes like reallocating funds and investing wisely, while also emphasizing the emotional aspects of money management post-divorce. Insights on retirement planning and funding kids' education pave the way for her new financial journey.
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Divorce Reset Her Finances
- Rachel's divorce cut her household income roughly in half and forced her to reconfigure finances quickly.
- She kept the house, exchanged retirement assets for cash, and started rebuilding from near-zero liquid reserves.
Financial Progress Isn't Linear
- Financial progress is not a straight line; life events can take you from advanced stages back to basics.
- Rebuilding through the Financial Order of Operations is normal and entirely feasible.
Rebuild Emergency Cash First
- Build your emergency (mercy) fund to cover deductibles and living needs before pursuing long-term goals.
- Treat replenishing cash reserves as step four in the Financial Order of Operations and prioritize it after crises.
