How To Actually Win Financially In 2024! (Ignore Everything Else)

[@BigRyGuy]

“Pigs get fat, hogs get slaughtered” Best awkward pause EVER!

[@BlakeC341]

People teaching you how to amass wealth for free and some complain about 1min of self promotion in a long video. The entitlement...

[@jttasb]

Thanks!

[@Bosshog-WealthHealthBetterment]

I've been doing a net worth statement for a year and can now see YoY. Jan-23 I finished with £344K, currently in Jan-24 we're at £448K. Managed to contribute £75K (around 32% of take-home) and the market did the rest. Hoping to make it £100K this year, but that's more of an aspiration, £90K more realistic, but got to aim high. It's really rewarding to see, and whenever I feel a bit beaten up by the market, I love looking back at earlier points and remind myself that any pullback is part of the process. Zooming out looks like the start of something :) I really think that's the benefit, at least for me. Numbers = reassurance. Good luck to everybody winning financially in 2024.

[@googleuser1522]

I came of age during the Rich Dad Poor Dad nonsense. And I fell for it. Sure wish I would have had you guys 20 years ago. Oh well, can’t change the past. But I’m sure gonna make the next 20 years a success. Keep up the great work!

[@FIRED13]

What was the nonsense?

[@jacksonbilly9979]

@@FIRED13the fact ever chapter of that book was just repeating the previous chapter. That could’ve just been just a 10 page book. It just repeated itself over, over and over again.

[@stocksxbondage]

It’s the album with a classic song as the first track and the rest of the songs are skips. You can read the first chapter then set the book ablaze.

[@ConserveMore]

I read it cover to cover and it was the first book to inspire my interest in personal finance. So they did something right.

[@chemquests]

Using leverage to build wealth is a questionable strategy

[@mattbenz99]

Edge of Tomorrow was actually based on a Japanese novel by the name (and this is the official translation) "All You Need is Kill". As you can imagine, they decided to abandon the original Japanese name and go with their own name when they made the movie.

[@vincehilaire720]

I understand the utility of revising (downward) the vehicles' asset values with each net worth analysis, but I never include them in mine, thus net asset value = 0. That's a powerful implicit message!

[@Villhelm478]

I've only included mine when I have a loan on it so that I know roughly what I'd owe/gain - especially if I'm aiming to utilize rate arbitrage, I keep the loan and asset balance in my net worth.

[@nodsib]

Same here, our cars are pretty inexpensive, so I don’t bother including them when I calculate that

[@FIRED13]

Just one point in regards to budgeting & the the journey to FI, from someone who's reached FI. At least in regards to the traditional budgeting, you DO NOT NEED to create a budget, per say. You simply need to pay yourself first (in the form of saving & investments), and spend the rest. There are more details behind the mechanisms to help with this have (like two stash of cash, one to pay bills from and one to serve as a reserve bucket/emergency bucket, auto investments each month/quarter, etc) We tried budgeting many times, but the effort of tracking just was just not our cup of tea.

[@Camie2030]

Thank goodness for your comment! Ive been trying budget and got so loss. And take up too much time.

[@r4accb227]

It seems what's being done there IS (simple form of) budgeting though unintentionally. When you set an amount for pay yourself (and keeping the rest for spending) is the a kind of a budget. You may not be tracking the expenses and income. But do see your point on some people finding difficult to track expenses in a detailed manner.

[@fellow_servant_jamesk8303]

Exactly. “Budgeting” is a waste of energy if you’ve already set up recurring investments/ forced scarcity based on your investment goals. Invest heavy in the future, enjoy the leftovers in the short term.

[@testit1902]

The target date fund vs the SP500 question was a good one, but the answer didnt mention international allocation, which is likely the primary driver of tue return. All target date funds are going to have an international component. They mentioned the diversification but only mentioned risk on vs risk off assets. Glad they told him to go look at the fund allocations, but didnt tell him what to look for. Most people are surprised to see the bulk of Vanguard target funds are 40% international which has lagged the US the last 10 years. Feels high to many but if your Roth is US only and your taxable account is US only it is likely going to bring your total portfolio international allocation down a lot from that 40%.

[@bribradt3450]

I started out in a target 2055 fund while I learned more about investing. I like having some international but not upwards of 35-40 percent like most tdr funds. Also at 32 I didn't like the idea of bonds with still a 30 year time horizon. I landed on roughly an 80/20 and I'll start adding fixed income in my 40s

[@jeremyhavard88]

Proof that bad things hang out together. Lost my job, my side hustle, and my investments all within the same 8 month period. Tough.

[@LawrenceTimme]

The edge of tomorrow is a great film. One of the few modern films i enjoyed

[@jillyhawk_4581]

I love my Corolla, it’s a great car! 😂

[@Shedderdude1]

Someone please correct me if I'm wrong. For the question about the commercial real estate, shouldn't their business be paying rent that would cover the mortgage as a business expense? That would come out of business revenue. Personal savings rate of 25% should come out of their personal gross income from the company which would be separate from the business expense paying for the property.

[@kinglasher84]

Not if the business owns the building.

[@Austin-fc5gs]

17:40 Beau is throwing so much shade lmao

[@carieyounginsurance]

Just watched the Firm! Love that movie and I completely get what you were saying Brian! 😝😜

[@BDK86]

Omg my emergency fund is this.... is it to much? Heard this question so many times.

[@ConserveMore]

The Firm was a great movie.

[@myrajavier1547]

Love your team where I even got to laugh with you all. I feel I’m with you 😂

[@BiggMo]

(Brian’s Troll here) Takes money to make money… wish I had chosen the burden of student debt when I was younger. My career has had limits without a degree. These tactics don’t work some of us scraping by.

[@Austin-fc5gs]

You can still do it, if it makes sense. Their rule (iirc) is the debt should be less than 1 year of your expected income.

[@BiggMo]

@@Austin-fc5gs time is the enemy now, hard to get payback at age 58

[@15minuteworkout20]

Love a good Q&A

[@BenFranklin1776]

Due to work commitments, I cant watch live, but Im hoping someone can help. We are in our first home (5% down but appreciation has us now under 80% loan to value) but it is not our forever home. Plan to move in 4-5 years. Savings 25% but not yet maxed out 401k (wife and I both work). Where in the FOO should we be saving for a future down payment? How does that fit? I like TMG rule about 20% down once you are past the starter home. With closing costs, in this area, saying $100k is a decent, round estimate for that. Should we drop to 20% for a while to set cash aside for this?

[@LOLZHAHANOTFUNNY]

I think dropping down your retirement savings for a set amount of time would be a good move. PMI is a tough pill to swallow, sure you'll be missing out on a little bit of investment gain but 80% loan to value is literally cash back in your pocket every month for years. It sounds like you guys are disciplined savers and don't need to worry about being caught unprepared. Great job!

[@Lucky008aau]

Yep, in your situation, I would lower my savings rate. If you're under 35, I'd probably get through step 5 of the FOO, then save the rest for the next home down payment. Or simply, lower your savings rate to the rate that allows you to save up $100k in the next 4-5 years. Hopefully, that's around 20%.

[@jonniwright224]

Yes I’ve seen the firm! Tom Cruise baby!! 😂

[@adeyemiolaogun4512]

They don’t even make Toyota Tercels anymore!!! 😂

[@MikeBlankinship-c7o]

I am retired and have 3 short term rental properties and want to sell 1. With current prop values I will have a $350k cap gains and I don't want to 1031. What are some alternate tax solutions for the cap gains?

[@jdmulloy]

If you move into it for 2 years it would be your primary residence and you could not have to pay the capital gains, but you have to do that 2 years before selling and it also requires moving into and living in a home that might not be the size or location you want to live in.

[@nrivera567]

Did u ever lived there for 2-3 yrs? You can have 500k in capital gains as a couple, without paying them. $250k as an individual.

[@MikeBlankinship-c7o]

@@jdmulloy it is purely investment property an hour from my house. I actually want to sell it to scale down on time and responsibilities.

[@jdmulloy]

@@nrivera567 has to be 24 months within the last 5 years. Even if you lived in it a decade and moved out 6 years ago it's then considered an investment property.

[@chemquests]

Got to find a capital gains loss or a deduction like charitable giving

[@ericanderson5487]

What platform would you say covers majority of the following features? ■ Allowance to input historical data ■ Bank Connectivity (including credit cards) ■Financial Investment Connectivity ■ Follows the Zero-Based Budget ■ Ease of Use with Budgeting Category ■ Ease of Use with Fund Tracking ■ Ease of Use with Net Worth Tracking ■ Ease of Use with Net Worth Forecasting ■ Ease of Use with Monthly Budget Exporting ■ 2+ users can use the same account ■ Smart Tracking Recommendations

[@bribradt3450]

Empower

[@TheAeCProductions]

man i love me some foo

[@ImVeryBrad]

Egg foo young

[@eddiebrugal8660]

excellent info

[@Riverbend1752]

Last year, I graduated from university and started a job. I got a welcome bonus as part of my compensation. If I quit or lose my job in the first two years, I owe some or all of that welcome bonus back. Should I include the amount I would owe back in my emergency fund on top of 3-6 months of expenses? I can't make the streams, but I would appreciate the thoughts of fellow commenters.

[@MoneyMace]

It depends on the likelihood of you either quitting or lose your job within the next two years. If you feel like either of those are going to happen, maybe put that money on top of 3 to 6 months emergency. I’m not a financial advisor but that’s kind of what I think

[@sharonoddlyenough]

A lot of the job-hopping influencers say hopping at 2-3year intervals is optimal, so if you're so inclined, it's in your best interests to stick around for that 2 years. If you can see yourself becoming so miserable that you would jump ship, save that money aside and invest the chunk later if you don't use it.

[@vulpixelful]

For the future, try to negotiate those clauses out of the bonus offer. At least have it only contingent on if _you_ decide to move on, not if they decide to dismiss you. Layoffs don't have to depend on performance, and they can choose to dismiss you at any time.

[@Riverbend1752]

@@vulpixelful I tried to negotiate my compensation package, and they flat-out wouldn't even discuss it. I still accepted their offer because it was substantially better than the other offer I received. My company has never done layoffs, and I'm in one of the fastest-growing divisions, so I'm not worried about getting laid off. I've also heard of people who perform poorly being allowed to voluntarily leave while keeping the bonus.

[@nathanlee8053]

I keep missing these Q&A live sessions but my wife and I are currently both working and have a 6mo old. We are trying to set ourselves up for my wife to stop working in the next year or two and I am having trouble calculating how much we should be saving for retirement with the knowledge that our household income will be cut in half in the next couple years. Do you have any advice for people in situations like ours for setting savings goals.

[@Strategies2010]

Start with the FOO or other resources on their website - it has a mix of “accumulation of wealth” and “maintaining wealth” steps. Hiring a professional CPA/fiduciary is probably also a good move as you transition to retirement

[@Austin-fc5gs]

Net worth for early retirement = 30 * yearly expenses (~3.3% SWR) Net worth for traditional retirement = 25 * yearly expenses (4% SWR) Average real return (adjusted for inflation, 100% US equities) over last 50 years = ~5% I'd make a spreadsheet with 2 columns: Net Worth, yearly savings. Next years net worth = (this years net worth + this years savings) * 1.05 Now input your expected savings each year, reducing when your spouse plans on leaving the work force. Now you can play with the values to see the relationship between her leaving the workforce and your expected retirement date

[@thelozanos5757]

You should determine your budget for when your wife stops working and try it out for a bit now. Once you’re comfortable after a month or two use the time to set aside the extra cash she’s making now per the FOO on the website. My family lives off of my income and saves my wife’s so it’s a similar situation here

[@Zombiebeast1995]

I agree, start saving 100% of her income before she quits and if you can do that for 6 months you should be good. Make sure you have a bigger emergency fund (6 months). Once she quits and you are comfortable living on your salary then plan based off that salary, and if you are saving 25% you’ll likely end up ahead.

[@LawrenceTimme]

She might be able to change to some kind of work from home. Even if it's just part time or a side job, the extra can help a lot. If she can make 15-20% of her current income while being a stay at home mom, then her retirement is sorted without relying 100% on you :) the tax on such a low income will be very insignificant as well so she'll be able to save almost 100% towards her retirement.

[@googleuser1522]

Great show. Good choice hiring Katie. She’s got a fantastic radio voice and stage presence. Well done!

[@arh1234]

I think that's Rebie - Katie sends the tumblers. I agree, she's great!

[@txbiker15]

Ya'll should do some movie reviews or tier rankings. I think that would be pretty entertaining.

[@singlemomadvice2921]

I saw The Firm, but I’m 57. Lol

[@ryanbaileyboxing]

By the time i save the 6 months expenses an emergency happens and i have to start over. Better to allocate 10% to emergency savings 10% to invest and 10% to roth while paying debt with 20% dont you think?

[@vstravis]

What happened to fte Daniel

[@scottwible1532]

I’m a prodigious accumulator of home decor 😅.

[@jasonbenton508]

When calculating net worth, should we enter the current value of our primary residence or its current value?

[@ImVeryBrad]

They say you should use the purchase price to avoid your net worth ballooning too much. I added 1.9% to my home when I factored it in

[@jdmulloy]

You said current value twice, I assume you meant to compare with cost. They usually say they go with cost. That's what I do for the same reasons they do. Since I can't easily sell my home to get the equity out I don't count market appreciation as an increase in my net worth, but I am still counting the equity increase due to paying down the mortgage. Home equity isn't really useful for income until you sell to downsize.

[@nordicxs]

You kinda repeated yourself, TMG suggest to use the purchase price - mortgage in calculating your primary residence in your NW. NOT the market value.

[@Lucky008aau]

TMG say to due cost + the cost of any improvements you've made (i.e., new furnace). Personally, I look at my home equity as something that could be used if my life goes bad. I've also used a cash-out refi to invest in the past, so for me, home equity has been an integral part of my wealth building journey. For home value, I look at Redfin and Zillow and take the lower of the two. If I was pedantic about it, I could subtract 6% for realtors fees + a bit more for closing costs and moving expenses, but I don't.

[@joeshmoe001100]

I miss the brick wall background

[@BigPapiNick]

Look at so of the oldest vanguard target date funds. Over the life of the fund which is about the 30-40 years. Average return since inception is only 6% they suck. Just invest in s&p 500 for a straight 20-30 years then stop investing in it and start investing in bonds and cash

[@Isaacleeyeahthatsme]

I agree man. Target date funds don’t have the 500 index fund, but the total market index fund as part of its asset allocation. They’re different funds! A combination of a target date fund and an index fund accelerates to that critical mass point they talk about.

[@BigPapiNick]

@@Isaacleeyeahthatsme but wouldn't it be easiest just buy s&p from 20-50. Then just start trickling in bonds, cash, ECT more heavily until retirement. You want the max return for as long as possible before you start having to neuter your returns

[@Isaacleeyeahthatsme]

@@BigPapiNick Maybe…Id like to think investing in bonds a small amount from the start is good. That way you don’t have to rebalance a small part of a huge portfolio into bonds. The book “The Simple Path to Wealth” is a book The Money Guy Show recommends. I read it on Christmas break. It advocates for what you are talking about, except the author, J.L. Colins says to invest in a Total Market Index fund, then do around 20-25 percent into a Total Bond Index Fund. Like I said, the book was on The Money Guy Shows post about their recommended holiday reading. Give it a look if you want. It’s a great book!

[@testit1902]

​@@BigPapiNickyou are describing a US only portfolio allocation. Backtest from 1980 vs 2000 and the total return on a zero international allocation is going to look very different. There is no way to know how smart a US only allocation is going to look in 2030 or 2050.

[@mlsasd6494]

pure return data does not say much without doing a risk adjustments. They are different products with different risk profiles. Most private investors suck at investing, so if you go with a TRF with 6% overall you are already better than 80% of private investors. If you know what you are doing sure you can do better, but only if you actually do it properly and have your nerves in check.

[@chrisord7863]

Where does budgeting for vacations be in the steps of the FOO?

[@Austin-fc5gs]

Pre paid future expenses

[@BenFranklin1776]

​@@Austin-fc5gsCan't be. They talk about simple vacations a lot when they speak of bedazzling your basic life. That type of thing would not be after maxing out all accounts and 25%. That might apply for top deck balcony on a cruise, but a buried internal cabin would be earlier, no? (Not necessarily speaking about cruises, but just to illustrate the difference)

[@Austin-fc5gs]

@@BenFranklin1776 i think it is after 25% (hyper accumulation) which for some might not be maxing out retirement accounts. Im not able to find an applicable step before that, but please correct me if im wrong

[@philipcooksey3422]

I believe that would just need to fit into the wants category of your budget.

[@chemquests]

It’s the 75-80% not involved in saving & investing

[@yourface2616]

State of the union 😂

[@kaitlyncranwick]

Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market

[@StellaMaris-lv2uq]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a-lot of wealth transfer in this downtime if you know where to look.

[@maryHenokNft]

I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than $600k within just a year, and I've entrusted my advisor with the task of determining entry and exit points.

[@maggysterling33254]

@@maryHenokNft Do you mind sharing info on the adviser who assisted you?

[@maryHenokNft]

Definitely! All of this happened in less than a year after *Camille Alicia Garcia* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.

[@BiancaSherly-qt6sb]

Appreciate this recommendation, hopefully I can get some insight to where the market is headed and strategies to beat the downtrend with when I hear back from Camille.

[@CessnaPilot99]

The show is kind of becoming a sales tool for all the courses and stuff almost. Don't get me wrong I love the show but I've noticed recently a big increase in sales pitches.

[@kevintheshane]

Maybe a little bit, but to me, selling something they believe in is so much better than taking sponsorships or, heaven forbid, selling financial products at a commission. Brian and Bo are the real deal.

[@CessnaPilot99]

@@kevintheshane $249 for the FOO course...$99 for the know your number course? Thats too much... would Frugal Brian 20 years ago spend that money on the course? Probably not LOL. I agree that they're the real deal but those courses are not affordable for the average person. I'm conflicted but on the whole I totally support what they do and I'm on their side. Just dial back the advertising a little bit guys

[@stocksxbondage]

What’s more annoying is people receiving free high quality content from ACTUAL professionals (not “KZbinrs”) yet have the nerve to complain that they plug their own business… You understand they wouldn’t even waste their time with this channel if they couldn’t sell anything. They have employees 😂 less than 500k subscribers and you think they’re making enough on YT ads to pay themselves and their overhead? I’ll never understand y’all in every comment section complaining about someone harmlessly doing their job at NO cost to you. Just don’t buy it…

[@uhnonymous2374]

@@CessnaPilot99the majority of their free content on youtube is enough for anyone to do well on their own. the courses are there for people who want those personalized deep dives or just need more help and have the money for it lol. i don’t think they ever pitch their courses as must-haves

[@ljefferies2012]

I’d say their target demographic for listeners and clients are not the average person. “Average person” listeners might do better with something like a Dave Ramsey course, which is probably like $100. So truly $250 for their listeners who maybe have higher incomes but not good habits or are just starting out, is way cheaper than paying a financial advisor.

[@Camie2030]

I haven’t watched the Firm either. 😅

[@nickleonard7826]

Can I get a Stanley tumbler?

[@TheParkingLotGarage]

What?? You don’t think it would be appropriate or advisable to take care of your known issues first before going to see a doctor? Moneyguy, come on now that was such a bad example.

[@DannyNomad]

Target date funds are awful advice for someone with decades long time horizon. Stop telling people to invest in that crap.

[@eddiebrugal8660]

There are some who are not as financially savvy for who Target date funds are appropriate.

[@Austin-fc5gs]

what would you suggest instead? A more monetarily efficient alternative would be investing directly in low cost index funds, but then you would need to understand US/INTL allocation as well as stock/bond allocation as well as optimal asset location. Some people don't want to get that into the weeds for a slightly higher expected return

[@DannyNomad]

You're better off just doing an index fund and holding it for the coming decades. People with long time horizons do not need any bonds in their investment portfolio.

[@Austin-fc5gs]

@@DannyNomad i agree, but holding bonds can be a behavioral hedge. I dont think the average person can stomach the volatility of a 100% equity portfolio.

[@ramq96]

​@@DannyNomadAs time goes on your risk profile will change and you'd have to change allocation manually which not everyone is going to remember to do.