Brian Preston (Money Guy Show): Financial Order of Operations

[@MarriageKidsandMoney]

Check out the full interview with Brian Preston here: kzbin.info/www/bejne/r3LLZaadbrRshqM

[@sydney58279]

27 and currently working on Step 5 🥰 Learning all of this has hugely changed my mindset on “needing” a new car, “needing” new clothes all the time, “needing” to eat out.

[@MarriageKidsandMoney]

The fact that you're learning this and taking action on it at 27 is MASSIVELY impressive. At 27, I had a -$50,000 (negative) net worth and was spending way more than I earned. Keep it up!

[@abc123abc99]

Two of the best in the business. I love the positive, informed, optimistic, and non-political approach you both take to personal finance content.

[@MarriageKidsandMoney]

Much appreciated! It was fun having Brian on and learning from him.

[@Davewhipped]

The Money Guys! My favorite show.

[@MarriageKidsandMoney]

They rock!

[@kylemorgan7822]

Love the money guy show! What a great guest to have on.

[@MarriageKidsandMoney]

Their content is so helpful! It was an honor to chat with Brian

[@MRkriegs]

good little chat, we love Brian Preston

[@MarriageKidsandMoney]

Thank you for watching! Yes, Brian is helping so many with his smart financial advice 👍

[@ldbdawg]

Incredible! Great person to have on the show! I love Brian Preston & his channel/podcast.

[@MarriageKidsandMoney]

He’s a guy I really trust and he’s out there to help us all win 👍

[@davidkassab8960]

Very helpful and clear advice. Fantastic interview !

[@MarriageKidsandMoney]

Brian is doing incredible work! Glad you enjoyed it David!

[@dorisbenedith8664]

I love ❤ 😍 The Money Guy and team!

[@MarriageKidsandMoney]

Aren’t they great?!

[@appleztooranges]

My job only gives a Pension. They also give you an optional 457b which I max out. Just started a Roth IRA too

[@MarriageKidsandMoney]

Incredible! Future millionaire if you aren't one already!

[@appleztooranges]

@@MarriageKidsandMoney house paid off and completely debt free at 36 too.

[@MarriageKidsandMoney]

@@appleztooranges That's incredible!

[@eddieslittlestack7919]

Good stuff brother. Lucky you to interview him. Thumbs up brother!

[@MarriageKidsandMoney]

Brian is a great guy!

[@robertmorris2576]

Too cool! Great video. Definitely would like more videos like this. Awesome

[@MarriageKidsandMoney]

That’s great feedback Robert! I’m on it 👍

[@victorbaird8220]

It’s Brian Preston the money guy 😊

[@MarriageKidsandMoney]

An honor to chat with Brian!

[@seansenske2987]

Great Show, those guys are great.

[@MarriageKidsandMoney]

Thanks Sean! You know from experience this stuff works 🤑

[@financialorderofoperations4721]

I love them so much I named my reference channel after them!

[@MarriageKidsandMoney]

Nice!

[@tuomio5043]

How do you save up for a down payment on a house? Should you allocate some of the money to a HYSA instead of the roth IRA and HSA? What priority is getting out of a rented apartment?

[@MarriageKidsandMoney]

Depending on your timeline for buying that house, a HYSA could be a smart move! Investing might be risky with a shorter timeline. More thoughts here: kzbin.info/www/bejne/b32Ud6aYp5KkrK8si=3O2qyKt3aVtpTu9K

[@drewfortune9165]

Can anyone tell me what that number tracker behind Brian's head is called or where one would buy one? I Googled the crap out of it, but can't find it

[@MarriageKidsandMoney]

When you find out, tell me too. I want one to track the progress of this channel!

[@matthines7832]

My highest deductible is my health care. Do they recommend the deductible only, or- tge out of pocket max? For context: The deductible i have gets my insurance to cover 80/20...

[@MarriageKidsandMoney]

My assumption would be the deductible. But yes, for your healthcare, auto insurance, homeowner's insurance, etc. It can be a lot when you add them up! After a recent flood at our house and then a car accident all within 6 months, I'm glad we had our deductibles saved up!

[@matthines7832]

@@MarriageKidsandMoney to clarify - they suggest step 1 being your highest deductible and then moving on to step 2, right? I could see benefits in having all deductibles saved as well as the out of pocket max. Obviously it'll take time, but I see the benefits.

[@MarriageKidsandMoney]

@@matthines7832 You got it! From their website (moneyguy.com/article/foo/#foo1): Do I need to save all my deductibles? Or just one? To complete step one, you only need to save enough to cover your highest insurance deductible. The biggest risk is of a single emergency to happen, and while it is possible for multiple financial emergencies to happen at once, you’ll build savings for that later in step four, emergency fund.

[@TheBlurr3dVision]

So is step 0 getting insurance? Because I don't have health insurance...

[@griffenspellblade3563]

Yes. American healthcare is very expensive. One ambulance trip can be over 1,000. A hospital bill gets very big very fast. I broke my shoulder and hit the out of pocket max just on the initial ER visit let alone the follow up care and rehab.

[@BiffcheeseSpinoccoli]

So much financial advice seems to depend heavily upon having the kind of job that provides insurance, stocks, and a salary that covers all of your expenses PLUS extra leftover. Lots of people don’t have that, even after going to university for exactly that purpose. How do these orders apply to them?

[@MarriageKidsandMoney]

@@BiffcheeseSpinoccoli I hear you! My wife and I both currently do not have jobs with any benefits (outside of some paid vacation days). We have healthcare coverage from healthcare.gov for our family of four. If I wanted to invest for my retirement further, I would use a Roth IRA with a brokerage partner like Vanguard, Fidelity or Schwab. Keep it simple with low cost index funds/ETFs that track the US market (like a VTI). Eliminating high interest debt still takes priority as those interest rates are often higher than anything you’d earn in the stock market. Please let us know if you have any other questions!

[@JVoltz92]

can you do an episode about starting your own company to be a broker-dealer in an LCC of one (yourself)

[@JVoltz92]

SEC, SIPC, FINRA, CRD, IARD - start with defining those terms and explain the annual fees

[@JVoltz92]

1.) create LCC 2.) fill out form BD through the SEC 3.) join FINRA or another SRO 4.) ??? 5.) Profit

[@lioncrud9096]

how does risk factor in? For example, should you prioritize paying down high interest debt over 3-6 month emergency fund if you work in an industry being hit with layoffs?

[@MarriageKidsandMoney]

Great question! I believe "steps" or "orders of operation" are good guideposts for us to view, but we need to factor in our own unique situations into the equation. If your industry is being hit hard with layoffs and you have a feeling you'll be out of work for a bit, having money in the bank is a smart move.

[@natekadlecek9973]

FWIW y'all missed something about the deductible. You need to save more than that as their is usually co-insurance. Really, you should have whatever your out-of-pocket max, is. If you're self employed it can be sky high, unfortunately. Our out of pocket family max when I was self employed was $14,400.

[@MarriageKidsandMoney]

Great feedback! Our family uses an HSA to set aside money for deductibles, co-insurance, etc. Depending on the medical issue, it could be quite expensive!

[@jkleczewski]

Should that max deductible be my Max out of Pocket for my health care? That is a higher number than my 'deductible' (nearly double).

[@edgargarcia5771]

That's what I do...yes.

[@KarmaCifer]

I recently started seeing Money Guy's content, but I can't understand any of this. I'm not a native english speaker and I have no idea what Roth, employer match or HSA is and no matter how many times I try to see them explaining it, they just jump into it without really explaining what it is

[@MarriageKidsandMoney]

That sounds frustrating. What questions do you have?

[@General8675]

They have stuff back in their catalog, they talk through it, but not every episode.

[@ethanbarrieau7917]

Is it possible you are not in the US? A lot of their advice is specific to programs and tax rules in the US - you can pick universal tips out of that, but it will definitely be hard to understand if you don't know the available programs.

[@Greg766]

Roth 401k/ira means you use after tax income to invest in a type of retirement fund (called a Roth) and the gains aren’t taxed. Traditional 401k/ira means you invest with before tax income, you don’t pay taxes now but you pay later when you withdraw money from your retirement account. Ira is a personal retirement account 401k is sponsored by your employer. Some employers will match your retirement contributions up to a certain percentage depending on your employer that is employer match. Hsa is a health savings account. You use pre tax money and when you buy health care related stuff you don’t pay sales taxes on the healthcare bill.

[@Northstar2000]

This is all americanized you need to find the equivalent in your country

[@johnfernandez5237]

If you have a 401 k, but it doesn’t offer any company match is it basically a rip off?

[@MarriageKidsandMoney]

It's hard to call it a rip off without knowing the investment options and the fees associated with those investment options. A Roth IRA with a low-cost brokerage partner like Vanguard, Fidelity or Schwab can be a great place to start. Here's a video on how to open a Roth IRA with Vanguard - you can start with $1: kzbin.info/www/bejne/eoXUda1jitZjrs0si=ca5uIOeiFW4iyyV_

[@surfnbacker84]

There are no retirement loans

[@MarriageKidsandMoney]

That’s the truth!

[@MCPlatinum-MCP829]

Im 21 i get butthurt when they use 20 year olds for examples lol im older than that 😂

[@MarriageKidsandMoney]

You should absolutely be offended! haha

[@tmusa2002]

Disappointed they skipped talking about HSA.

[@cheonglee300]

I need help growing my wealth, I want to hyperaccumulate. can someone save me from the stagflation

[@Frank020]

Im eating rice and beans 🫘 beans and 🍚 . Inflation is kicking me hard. Saving for retirement. Sadly, only an extra job will increase my income..

[@MarriageKidsandMoney]

Inflation has been very rough for so many over the past few years. I wish you the best on your journey.

[@joeys7519]

Really tired of 22 year olds being used as an example, I’d bet the audience is primarily in their 30/

[@sbman436]

Most likely

[@admiralmurat2777]

Started listening to Bo when I was 22. Now 25. Car Paid Off. Joined Military. Invested 60k. Bachelor's degree is paid off. Gi Bill will pay for PhD.

[@mycarshit]

Same! I turned 40 this year and I feel pretty f**ked

[@sbman436]

@mycarshit You're not, though. If you wait any longer, you will be. You have to crack down now. 20s is ideal. 30s is ok. 40's is almost too late, but there's a chance. 50's you're fucked.

[@kyledavis2751]

23 lol

[@alishacuddy2473]

He kinda skips over HSA and what you're supposed to do with it.

[@MarriageKidsandMoney]

Here's some information I put together about HSAs - kzbin.info/www/bejne/ooHQapltiMarhrMsi=rnA5cFiuLHGMbx2X

[@RobertBeedle]

This video needs an updated thumbnail and it will get a second life.

[@MarriageKidsandMoney]

I appreciate your feedback, thanks!

[@tracywilliams7929]

I truly don't like the idea of not paying for the child's college and burdening them with lifelong debt just because you are too lazy to work until 65. Its a form of throwing them under the bus, isn't it? 9:39

[@donaldlyons17]

Yep a specialist education is a requirement even if it is not college. Getting good jobs requires special knowledge...

[@alishacuddy2473]

I don't have kids but really it seems like parents stuck between forcing kids to potentially get loans for college or taking care of parents because they can't afford to live on their own and maybe not able to work.

[@tomr9074]

Or your kids could work their way through college.

[@BiffcheeseSpinoccoli]

@@tomr9074it doesn’t really work like that anymore. What job could a kid out of high school get that would cover their college expenses?

[@user-kpkxgtj]

With the way things are working out these days, securing their retirement so they are not a burden in the future might be the best thing people can do for their children. Young people may not be able to afford to look after themselves, a family and their ageing parents. Also it's not necessarily lazy to not want to work till 65 - some jobs wreck havoc on the body and on people's mental health. If one has the finances to support themselves, there's nothing wrong with leaving the workforce, or at least cutting back significantly on the time and effort spent at work.