Brian Preston (Money Guy Show): Don't Pay Off Your Mortgage (Yet!)

Brian Preston from The Money Guy Show cautions young investors not to pay off the mortgage too early. Here’s why he feels passionate about not rushing to have that paid-off house.
CHAPTERS
0:00 Intro
4:10 Wealth Building vs. Preservation
12:05 What about the risks of investing?
16:35 Order of Operations
19:45 Emergency Funds
24:35 Hyper-accumulation
30:10 Low-Interest Debt
#PaidOffHouse #PayOffMortgage #MortgageFree #DebtFreeCommunity #DebtFree #PersonalFinance
OTHER VIDEOS TO WATCH
10 Incredible Benefits of a Paid Off House - • 10 Incredible Benefits...
How We Paid Off Our Mortgage in 5 Years - • How We Paid Off Our Mo...
Life After the Mortgage is Paid Off - • Life After the Mortgag...
ABOUT BRIAN PRESTON
Brian Preston, CPA, CFP®, PFS - Brian is founder of Abound Wealth Management and host of The Money Guy Show. Brian is a 3rd generation educator, and this desire to create educated clients led to the award winning podcast and KZbin channel. He has been broadcasting for over 15 years. When not helping clients reach success with simple, smart strategies, Brian loves spending time with his wife, Jennifer, and their two daughters in Franklin, TN.
GUEST RESOURCES
The Money Guy Show: / moneyguyshow
MARRIAGE KIDS AND MONEY:
This award-winning blog, podcast and KZbin channel are dedicated to helping young families build wealth and thrive. Each week, Andy Hill interviews personal finance experts, families who've achieved financial independence and debt-free young parents.
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DISCLAIMER
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[@MarriageKidsandMoney]

What do you think of the advice from Brian Preston from The Money Guy Show?

[@andykline396]

I love the content from the Money Guy team! Fantastic interview with Brian! I love how they stress saving 25% or more, and the FOO is a great guide for everyone!

[@MarriageKidsandMoney]

@@andykline396 Agreed! If you save (and invest) 25% for an extended period of time, you're set for so many goals in life.

[@susanlewis1953]

Fabulous show - excellent content 👍😀

[@pattersonrory1]

I am a Brian fan. Been a fan ever before the KZbin channel. I want to retire early but I can't have the saving rates like alot of the fire crowd. Brian set me at ease with a comfortable saving goal and guidelines. All about the FOO

[@MarriageKidsandMoney]

@@pattersonrory1 I love it! FOO makes so much sense and it works!

[@jaywalk6628]

Every situation is different, I am choosing to get out of mortgage debt soon. Saving money to make a mortgage payment during retirement is being marketed as a "smart" financial decision. I know quite a number of mortgage free folks. NONE of them regret paying off their home early or are in danger of living on the street. Mainly because they DO NOT have a mortgage. 🙂

[@MarriageKidsandMoney]

I'm one of those guys that don't regret paying off my mortgage early. I love the freedom it offers -- both psychologically and financially.

[@MoneyGuyShow]

Thanks for such a great conversation, Andy!

[@MarriageKidsandMoney]

Anytime!

[@slimdawgwoof]

Brian Preston is my Superman. A true American hero.

[@MarriageKidsandMoney]

I love it! He’s doing incredible work!

[@amyjones4007]

Brian Preston explains it all so well and with so much enthusiasm. I love their Order of Operations. Great show!

[@MarriageKidsandMoney]

Agreed! It makes a lot of sense and it’s easy to follow

[@MoneyGuyShow]

Thanks, Amy!

[@karma240883]

I agree with Brian but paying off our $400k house is the best decision for our situation. Our household income is close to 200k, so we were maximizing our 401k and Roth IRA when we were paying off our house.Since paying off the house in 2020, we both are maximizing 401k, Roth IRA, HSA, contributing $24k per year to 529 plan. I also get 12% 401k match and my wife gets 6% 401k match.We are consistently hitting $100k per year towards retirement. Our expenses are at $25k per year. I am still left with 60k in savings every year which I am planning to buy 2 rentals per year for next 4 years. 8 rentals is my sweet spot and can make us financially independent.

[@MarriageKidsandMoney]

Your plan is solid and I bet @themoneyguyshow would agree!

[@thebestthingthatneverhappe6729]

wow how are things going with your plan now in 2024?

[@karma240883]

@@thebestthingthatneverhappe6729Going great. We both got promotion at work and our household income increased to $260000, not including the cashflow from one of our rental property. Still going to contribute $100k to retirement and 529 accounts in 2024. I also bought a vacation home in India all cash. I will buy another rental sometime in June 2024.

[@loljk9443]

I feel like a combination of investing 25% of your gross income and paying off your mortgage early is a nice combination to have built a nice amount of wealth and to have financial peace.

[@MarriageKidsandMoney]

It has worked well for our family!

[@lawrenceporter3723]

Great show, love both of your channels

[@MarriageKidsandMoney]

Thank you Lawrence!

[@seansenske2987]

Loved this one. Spot on everything.

[@MarriageKidsandMoney]

Awesome! Glad you enjoyed it!

[@rubennevarez7409]

Love the Money Guy!

[@MarriageKidsandMoney]

He’s a wealth of knowledge!

[@averyrobbins68]

love the money guy show

[@MarriageKidsandMoney]

They are doing incredible work! Tellin' it to you straight

[@keethakumareswaran9197]

Great show, Congrats!

[@MarriageKidsandMoney]

Thank you!!

[@mwashe]

Love those guys

[@MarriageKidsandMoney]

They are doing excellent work! So happy to chat with Brian

[@adammyrick]

I love the money guy show!

[@adammyrick]

I also love your show ♥️

[@MarriageKidsandMoney]

Yes! They rock. So fun to have Brian on the show!

[@MarriageKidsandMoney]

Thanks Adam!

[@MoneyGuyShow]

Thanks, Adam! Great to collaborate with Andy.

[@kelmike060404]

Is is 25% after taxes? After retirement savings?

[@ganthc]

Yes. It can include both. And they don’t consider matches in that calculation.

[@slimdawgwoof]

@@ganthc He talks about 20-25% of your gross income as the goal.

[@ganthc]

@@slimdawgwoof yep. Agreed. He does set it higher than Dave Ramsey, and it’s a smart move. It’s one area where the FOO is better than the Baby Steps. That plus taking the match and having more than just $1000 in savings.

[@pattersonrory1]

@@ganthc FOO is for people with a money mindset. Dave is a great help for the rest

[@TheFirstRealChewy]

It's 25% of gross, so before taxes. This is accounts for paying taxes on the income you receive in retirement. If you don't have to pay taxes due to it all being roth, then you'll be in an even better position.

[@rachelnavarro2897]

😂😂😂 I already did. 😂😂😂

[@MarriageKidsandMoney]

Ha! Me too 😬🤣 He said he won’t be mad at us 😂

[@brianrond]

FOO FAMILY!

[@MarriageKidsandMoney]

It works!