Money Guy Show How to Lose $5M in 5 Days (and How to Avoid It)
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Apr 4, 2025 Discover how just five daily financial decisions can lead to a jaw-dropping $5 million difference over the years, as illustrated by the stories of twin sisters Polly and Molly. Explore contrasting choices in luxury car buying versus practicality, and understand the long-term impacts of those decisions. The podcast emphasizes the importance of wise investments, the pitfalls of early account withdrawals, and proactive management of retirement savings. Small choices today can lead to significant financial transformations tomorrow!
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Affordable Housing
- Keep housing costs below 25% of gross income for better financial health.
- Consider a slightly longer commute for significant long-term savings.
401k Rollover
- Avoid cashing out your 401k when changing jobs; roll it over to an IRA instead.
- Invest rolled-over funds in a moderately aggressive portfolio for potentially higher long-term returns.
Sensible Car Purchase
- Buy a sensible car and avoid long loan terms (follow the 238 rule).
- Invest the money saved from lower car payments to build wealth.