The content team has been busy they've been out there raking through tick-toc...
harvesting the best videos they could find for us to share with you guys
I am so excited this cuz we never know what the internet has in store for us
Let's see what the content team has done today. I'm sure for sure things I do According to real comments, I've gotten wearing nice brands like Patagonia or Northface people seem to think that being Fruitful means being cheap or that you can't own nice things, but it's about being mindful of what you buy and Personally, I enjoy having a high quality coat when I live in the rainy, windy, and cold Pacific Northwest People also ask why I hire a nanny once a week because a frugality isn't about deprivation and
Not being able to enjoy luxuries that add value to your life. I budget for a nanny because I value being able to have time for myself Go visit my passion projects and it's within our means another comment that caught me off guard was buying clearance and how by me Taking advantage of clearance. I could be taking away from someone else who really needs it and while I Understand their sentiment having wealth doesn't disqualify you for using smart money to have it still Being furgoal and shopping clearance and saving money is exactly how we got here in the first place
And I'm always mindful of how much I take that way. I'm not hoarding everything and I leave some for others
And similarly participating in my local buying nothing group. This comes down again to that sentiment of taking from others who really need it I give far more than I request or take in those buying nothing groups and sometimes I use them just to borrow something instead of having to buy it I never try to claim essentials like diapers or food because I know that would better serve other families But for non essentials or things that I've gone unclamed then I will ask to be considered. I didn't see thing wrong here
And I love what Emily said was hey the decisions and the behaviors that we did that got us to where we are
“But if you want to see where they are we actually had her in Kenji on making a millionaire it was super super fun”
They're in a fantastic spot. I think there's nothing wrong even if you've had some success even though You're a financial situation might look differently today than it did 10 years ago
It's still okay to make wise sound financial decisions. Emily
Don't let them haters get you down look there if just trolls out there under all kind of bridges the thing they got me there Was buying stuff on clearance is bad you realize all your protecting is that stuff from ending up in the trash If you don't buy that muffin on clearance It doesn't mean somebody doesn't get to eat them often and by way. It's probably better if I eat them often than somebody who can't because it's not like this is good for you All it's doing is keeping it out of the landfill. I see nothing wrong with that don't let those feet the haters get you down if buying on clearance is wrong
I don't want to be right. I keep my food outside just so I can save extra money So I like to come to the home. This is my mother-in-law. I could save money on cooking this actually at home So what I'm doing here is I ain't that hard nurse. It's the company by Sam and so I can get it going and cook everything right for my family
“now it's time for the most important part about all of this you're gonna have to clean your fish”
I love people don't really like to clean their meats before they actually cook them But I have my stuff here now we wait. I know it may not work for most, but it works for me and I'm able to save money. So I'm fine with that In earlier days of this react book You and I had some of these this TLC cheap skate show and I kept saying this is all orchestrated This is I don't understand when into a home that had just been closed. I've caught on already
I love to see that there's somebody out there in the public that was so annoyed with how just choreographed that series was That he went to like Home Depot Walmart. I don't know where he filmed that at I like to come to the home depot to the home depot He said Home Depot there are times where we can take for gality or being quote-unquote a cheap skate too far Now obviously this was comedy this was a farce But in reality we see people do this we see people cut corners like not replacing the tires on their automobile or
Not providing daily or basic essentials that they need in their home Don't let yourself be that kind of person. There's nothing wrong being frugal. There's nothing wrong with being responsible But don't be penny wise and pound foolish when it comes to making those decisions What do you think is the best investment vehicle for a middle class American that is risk adverse An inflation index bond
Which is index fund a tips treasury inflation protected
“Because it will guarantee you a real return and I don't think that you should be”
Speculating in the markets because there's a zero some gaming. You're probably be the loser It's not a zero thing right is celebrate next year the 250th anniversary of this country are you optimistic about our future or is the debt problem So concerning to you you're not optimistic about our future. I think it's a time horizon We're going to go. I think I think we can deal with this I think it comes down to how we are with each other
We will go through this and
Is it the other side what was the original question the interviewer? Well, I think that's what I was going to say this whole thing
Because index funds would have been the answer, but he said for a risk adverse investor and because of the balance That's why when he went into tips. I mean technically that's not a bad answer because he said What's the middle class family that doesn't want essentially any risk? Well, that's the thing with any investing if you're going to get a risk premium or a return that's greater large enough beyond inflation and so forth. There's going to be some form of risk involved with it
“That's why I think that a diversified portfolio”
But a diversified portfolio is still especially if you're starting in younger years that leans heavily into index funds They total market return or S&P 500 that's going to serve you well in the long term. Yeah. I think a risk of Investor might even like a closer dated target retirement index because then you're going to get diversification But you're not just going to have fixed income exposure. You're also going to have equity exposures So I think maybe that was a little misleading and I'm a not like Ray Dalia, but that I don't know that I love that answer
Well, and index target retirement fine because I can see as soon as you say target retirement But oh no, he's talking to this fees are too hot. No, not it go look at what fidelity Vanguard Troll Schwab are doing out there in the index target retirement space the last thing you're going to complain about is the fees Can you afford a $300,000 home if you make $75,000 a year? Well, let's go through the numbers Me buy $300,000 home. Let's say you put down a 3% down payment. Look at 3% of closing costs is going to be
“$18,000 cash upfront then you get a 7% interest rate would put your”
$30,000 interest payment at $1,936 plus $550 a month for taxes and insurances bringing you to a grand total of 2,486 dollars a month. Now let's look and see what you can qualify for. Lenders typically going to use about a 40% debt to income ratio meaning that you would have a $30,000 allowance divided by 12 Putting you at $2,500 a month. So you barely qualify by 14 bucks, but you do qualify. That's if you have no deck. Now here's the next step. Can you afford it? Because if you make 75,000
dollars a year your take home pay after taxes for a 1K and health insurance is going to sit around 43,000. So this 2486 payment would take up 57% of your take home pay. So make sure you sit down with your lender and your family to make sure you can qualify and comfortably afford the payments. So you don't end up houseable. Based on his numbers, he came up with 40% of gross income. You know that our rule when it comes to buying a house is we want you to follow 3,525 and he almost
got us there at least 3% down, but you don't have to do more than 3% down. You want to make sure you can stay in the home for at least 5 years and then you don't want the total housing cost to be more than 25% of your gross income. So in this scenario they're at 40% of gross I would argue
“this is a little more house than this person would be able to. Yeah and that's why he even got”
because he even did after tax you know net of taxes I should say and it was 57% you are as life your life poured house from house rich at that point and that's that's the fear you have to have now what I would challenge on this is that somebody is making 75,000 I'd love to know what their income trajectory is going to be for the next 3 years because I know my own career you hit 75 maybe the next year it's 84 85 next year it's close to 100 you know if you're on an
upward trajectory you know income trajectory you're in a good field like public accounting engineering other things you're probably going to be able to stretch things and be okay but I still like the idea of having some grounding and that's where 3,5, 25 really can help you but also understand that even having good solid rules like that your situation is going to be very specific that's
what we always say personal finances very personal. Hey Bob you remember what it was like in
those early days when we started the company and we were trying to do everything ourselves man we were wearing like 28 different hats you start the day thinking you're going to work on things like revenue and strategy and by the end of the day you're working on payroll forms and onboarding document. Yeah and if we're being honest it wasn't always the best use of our time and that's why we love Gusto Gusto is an online payroll benefit software built for small businesses it's all
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got one more time Gusto.com slash money guy if you have one dollar you can buy a bottle of water
If you have 10 dollars you can buy a barger if you have 100 dollars you can b...
you have 10 thousand dollars you can buy a luxury one if you have 100 thousand dollars you can buy a
“sports car if you have one million dollars you can buy a house if you have 10 million dollars you can”
buy a mansion if you have 100 million dollars you can buy a private island if you have 10 billion
dollars you can buy every formula one team if you have 100 billion dollars you can buy a small country if you have one trillion dollars you can buy Amazon if you have one quadrillion dollars you can buy the earth and if you have one six trillion dollars you might be out of buy Starbucks coffee okay that was a big blowback to get to that part I was waiting for the payout I was waiting for the payout I was waiting I was like what a creative thing because I was from a content creation standpoint I was very
excited and just moving the zeros each time and what he was using to show relative value for each of those changes well done and we've watched we've responded to his content in the past what he's suggesting here is Starbucks as a cup of coffee is an expensive cup of coffee what you spend your money on is subjective what you want to make sure you're not doing is spending your money on things that you don't care about to impress people whose opinions don't matter rather
“you should spend your money on the things that you care about that you find value and so if buying”
a Starbucks coffee is something that you enjoy and you place value and it's not derailing your other financial goals I think that's okay even if it's possible to go out and spend a lot less on a different cup of coffee somewhere up well time in place the latte effect is very important when you first start out in your journey you should be watching where your money goes even on little things like coffee when you're starting out by time you get the level three of the five levels of
wealth which is security you don't have to sweat the small stuff anymore and that's what I'm telling you time or place in the beginning latte effect matters as you make progress in your financial journey you're going to be less and less like a tight one and that's a okay six ways to increase your life quality on a budget outdoor walks stay free they get you out of your own head and they can take you to number five public library not only do you have free books and
photos of the books you also have free classes to raise your skills and free events to stay entertained almost as entertaining as number four trying a new recipe cooking an old name if you're not making anything fun so check your TikToks and Instagrams for more recipes three online workouts if 200 dollars a class is not in your budget and a free YouTube class is ready to film in the comfort of your own home to calling up a friend they'll appreciate it
you'll appreciate it and no one's going to be lonely today number one reading it's a lot healthier than doom scrolling so make sure to follow and then go find a book out man you know made that better if instead of pulling up one of Pat Flans books you would have pulled up millionaire mission if you'd have pulled that up and started reading that would have been ideal but I do love this there are very inexpensive ways to find things that you enjoyed doing
that can increase your your happiness without breaking the budget. Jacy puts so many Easter eggs in that little video he had his Dave Ramsey mug we needed we got to work on seeing how we can get him and uh to you oh millionaire rich and how he did oh yeah we made it thank you Jacy. We were just we were too much too fast just too fast just got over and got that one look off to all traded thought because I saw a millionaire mission golf club. Wow I got a $10,000 bonus in my first
job I'm going to take you on 500 put it my Roth IRA and then never contribute another dollar
until I hit 60. Wow I also got a $10,000 bonus in my job but I'm going to use it to go on vacation I could die tomorrow I have a rest of my life to invest well I guess I should start saving for retirement now I'm going to put $500 in my Roth IRA every year until it hit 65 what about you I don't know I haven't touched my Roth IRA since I put that 6,500 in it when I was 21 years old I've been investing other things but not my Roth well I've put $10,000 my Roth IRA let's see what we got $25,000 okay
what do you have you only put like 6,500 in there when you were kids oh let's see my Roth IRA's currently worth $178,000 wow they had $177,000 completely passively and it's tax free I should have
“invested sooner and she's right you should start saving early that's a wonderful habit but we don't”
want you to stop we want you to start saving early and we want you to keep saving keep saving if you could have combined person A and person B into person C person C has a beautiful financial future
I do like this set it and forget it you kind of you know automatic for the people on the always
be buying it's going to protect you from just the market volatility it's going to protect you from just your desire to go spend more you go set it and forget it and you're going to be much better in the future if you just go with that type of strategy thank you viper did I haven't wait a bit for my order oh no that's no thank you so much that's that's that's that's that's that's just totally legal you're dealing right to jail that's
Not a money hack that's that's stealing right to jail right away it's going t...
versatile but I love living in a free-go lifestyle and living so far below my means just so that I
can reach my financial goals like I don't need the over-priced coffee every single day and I've seen videos people like talking about how they're cutting out getting coffee every day in the small purchases and then people in the comments are like you know the small purchases don't matter like
“if you have to cut they do in the beginning just don't know how to manage your money well with me”
cutting these small purchases out of going to get a coffee every single day I've been able to put an extra $150 towards my financial goals every single month
cutting out all of this spending has honestly made me so much happier because I'm seen how much money
that I'm putting aside for my future and for things that I have planned I love that I'm not spending $150 a month on over-priced coffee is and I'm putting that towards my future instead of now. Now I couldn't help myself because she said a hundred and fifty dollar at a five dollar coffee that is thirty days of five dollar causes a coffee every day that's aggressive that's aggressive but I think there's probably a middle ground because I love what she said if you can cut back
on that stuff if you can put that money to work if you cannot fall into that consumption trap
then you absolutely can deploy those dollars to work for a better future for you. Look I'm all
about this type of lifestyle because I think you're trying to set good habits you're trying to get your army of dollar bills working for you while they had the biggest wealth multiplier possible but there is something to be careful there's too much of a good thing as you get older and have more and more success is there's a fine line between financial mutant and financial miser so enjoy this hobby or habit that is going to help build the foundation of your financial
empire but I want you also to be healthy and if you get enjoyment out of a cup of coffee like full disclosure because I'd pick on boat because you'd have a Starbucks coffee here right now bow loves a cup of coffee I mean he drinks a lot of coffee and likes good coffee it's okay if
“boat gets a ton of enjoyment and if he orders coffee I think that's why you get so excited you know”
it's bothered by the latte but because you feel personally attacked yeah but it's back to happy there's a time and a place in the beginning you should be budgeting and knowing where every dollar is going but as you have enough success you can graduate beyond budgeting you can have a cash management plan where the primary focus through four scarcity is you know automatically what's going into savings and investments and once you've crossed into the barrier
this is enough for what I want to have in the future go live your life without regret and I think if you open it up your loved ones are going to enjoy hanging out with your friends are going to enjoy hanging out with you more and you'll just get a lot more out of life as well so avoid being a miser go more for the financial meeting when it comes to making financial decision when it comes to having financial advice there is good financial advice out there and then there's
“not so good financial advice and you have to discern which camp each thing you let in your mind falls”
into but one of the things that we're going to do is we're going to keep loading you up you go to moneyguide.com/resources you can check out all of our free resources all of our tools all of our calculators because we really do believe there's a better way to do money. Overall I thought the content team gave us some pretty good batch of not bad advice there and we love creating this type of content so y'all y'all keep creating the content we'll
keep reacting to it we'll keep going beyond common sense to help you know what to do with every dollar. I'm your host Brian. Join Bobo. Moneyguard team. Out. 26.
