I was in that 51% up until 2021, I was sitting in a hotel room while working out of town and said to myself where the heck does my money go. I spent 3 days putting 18 months of bank statements into a spreadsheet and since then my spending habits have changed and my savings has skyrocketed.
The thought, "Where the heck does my money go." happened to me too. I spent a couple of weeks coming up with a budget and reducing my spending on trivial items. Now, I spend 1-2 hours a week looking at my budget (20 minutes here and there). I went from 0 saved in January 2022 to 14k as of today. Im 43 and I want to have 1 million in my investment portfolio/savings before Im 50 and then I will slow down.
I had this moment at 18 after a few paychecks because I felt like I was making so much money compared to birthday and babysitting before, but I had no idea what I was spending it on and it freaked me out. I’d go to buy something like an item of makeup and get immense anxiety as to whether i was making a bad decision and spending too much. I had to sit down and budget (which ironically gave me more wiggle room to spend while still saving a lot)
I love how at 1:07:00 Brian starts talking about little ones running around, then Bo and Rebie start losing it, and around 1:07:10 you can see Bo jotting down what must be something like "explain to Brian what a 'carpet muncher' is later" 😅. Thanks as always for the great content!
So long as there’s money in the bank to cover my expenses and my mortgage, I’m happy. I contribute to my Roth 401K automatically, and I had a portion of my paycheck go to a separate bank for my emergency fund. It works, I didn’t even need to use my emergency fund when a drunk driver hit me and totaled my car!
26:15. Love the discussion! Bo's comment re: it's fine to pay cash was funny. It was refreshing to see you hold the line on the 20/3/8 rule. Thanks for another excellent episode!
Everyone got a huge hit on their net worth last year and it will be the same this year. My net worth end of 2021, 7.32 million. End of 2022, 6.1 million, currently 6.6 million. As long as you can live (like myself) off the dividends (cashflow is by far the most important thing IMO) then you are good to go.
Clarification.....the industry hasn't had HUD statements for several years now but the Closing Disclosure is a closing document that replaced that. Lots of things have changed in the mortgage industry in the last 20 years but overall helpful to the public.
When tracking my net worth, I always create a fake liability account to offset closing costs on my house and to reduce the value of my car(s) so it's not over-valued. The house liability tends to be around 10% of the value pulled from Zillow or whatever site used. The car I knock off $1,500. On the other hand, I just use a (lowball) value on my RV.
When I go into a closing on a house, I insist on having the title documents no less than 24 hours before I'm expected to sign. This gives me time to read the documents and verify that there's nothing I object to and that the title company has not made any mistakes. The first happened once when I actually had a problem with the wording in the title policy. The second happens all the time and I've never signed off on the first draft of closing documents.
With SECURE 2.0, Roth 401(k) employer matching is only available if the employer changes the terms of the plan. At the earliest employers probably won't start making those changes to 401(k) plan documents until later this year.
We have a company ESPP and a pension. It makes it easier when we all get the same deductions because you know the guy beside you gets paid the same and can survive. I'm saving 40+% of my old gross. I increased my gross but don't have any numbers yet. I spent more last year but was running bare bones for 2 years. I had leveraged investments and dedicated a huge weekly payment to eliminate the money I borrowed. It all worked out great. When the rates rose, I had the money to pay off the investment loan. I've got nothing to buy (seriously, I have a lifetime of prosumer and luxury type products) and the government in Canada has some new investment tools. I'm looking forward to keeping all that I can. Next year long term investments are coming due and I will be tax efficient when they do. Car payments done this year (I beat the interest rate by over double the entire time). I am using the LOC again even at crazy rates to bridge a loan for someone exiting. I still get interest payments and they are covering the interest costs. I have an interest free loan!!
I was a 51 / 59 / 65 dweller, only bcz I didn’t know any better .. and like the guys are saying, it got worse from there - it did not get better on its own.
I have no problem with the idea of having a car loan. As long as I have relatively liquid assets that are paying more than the loan, why wouldn't I keep the loan? I have an RV loan that's about $100K. The rate is 4.99% for 20 years. But I have more than $600K in fixed income investments and much of that is paying more than 6.5%. I could sell those tomorrow to pay off the RV loan, but then I'd lose the leverage on my investments.
I check on an almost daily basis. Mostly as an exercise in discipline and to remove any tendency to react emotionally to changes. I have to say, watching the decreases in 2022 and the fact that those losses have still not been made good in 2023 indicates that my risk tolerance is high. Now my plan has to be how to mitigate the dips, so I will have to figure out how to use leverage to do that in retirement.
Only watched the first few minutes but could not disagree more. The first step is determining what you are saving money for, not discipline. If you don't know why, you will never put real effort into saving, and you have no idea if you are saving too little or too much.
Pay cash for your car .. beg borrow bike ber or bus for 3-4 months while u put ur $500 / mo payment in the bank 4 times, add the 800 u don’t spend (but will be shortly) on insurance, and buy a car for $2800 .. won’t last long, doesn’t have to.. 6 months later u have 3000 in the bank, sell the first one for 2000 and buy a car for 5000 .. a year later u have 6000 in the bank, sell what u drive for 3000 and buy a car for 9000 .. 2 1/2 years later u have 15,000 in the bank, sell what u drive for 5000 and buy a car for 20,000 .. 5 years later u have 30,000 in the bank, sell what u drive for 10,000 and buy a (new) car for $40,000 cash. Repeat every 5 years.
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I was in that 51% up until 2021, I was sitting in a hotel room while working out of town and said to myself where the heck does my money go. I spent 3 days putting 18 months of bank statements into a spreadsheet and since then my spending habits have changed and my savings has skyrocketed.
Wow! Jacob awesome! Seriously that takes a lot of work and self reflection, good for you!
The thought, "Where the heck does my money go." happened to me too. I spent a couple of weeks coming up with a budget and reducing my spending on trivial items. Now, I spend 1-2 hours a week looking at my budget (20 minutes here and there). I went from 0 saved in January 2022 to 14k as of today. Im 43 and I want to have 1 million in my investment portfolio/savings before Im 50 and then I will slow down.
Excellent
I had this moment at 18 after a few paychecks because I felt like I was making so much money compared to birthday and babysitting before, but I had no idea what I was spending it on and it freaked me out. I’d go to buy something like an item of makeup and get immense anxiety as to whether i was making a bad decision and spending too much. I had to sit down and budget (which ironically gave me more wiggle room to spend while still saving a lot)
For once I want to hear Bo open with.. " You know Brian, I'm not really excited about this."
And also, “Have I mentioned I hate people with eyebrows?”
"Brian, not gonna lie this topic bored the hell outta me."
I think I'd fall out of my chair if Bo came out of the gate like that!
Bo with the classic 5K meaning 5,000m joke. Absolute legend.
a 5k is 5000m…
Brian referred to kids as “carpet munchers” at 1:07:04. Bo noticed and couldn’t stop laughing. Haha
I love how at 1:07:00 Brian starts talking about little ones running around, then Bo and Rebie start losing it, and around 1:07:10 you can see Bo jotting down what must be something like "explain to Brian what a 'carpet muncher' is later" 😅. Thanks as always for the great content!
Rugrats, Brian….not carpet munchers😂
I was so flabbergasted when he said that. I was like... "am I crazy? I'm pretty sure thats not what that means"
So long as there’s money in the bank to cover my expenses and my mortgage, I’m happy. I contribute to my Roth 401K automatically, and I had a portion of my paycheck go to a separate bank for my emergency fund. It works, I didn’t even need to use my emergency fund when a drunk driver hit me and totaled my car!
Was down about $80k last year. It sucked but guess what folks? You'll see this at least once in retirement. Either plan accordingly or buy bonds.
Wait... did Bo really think a 5k was 5,000 miles? It sounded like a joke, then there was no laugh...
Hahaha I think he just misspoke. Hes clearly fit so I'm sure he's run a 5k. S funny tho
I thought I was the only one you caught that, until I looked at the comment section! “Five thousand miles that’d be awful”
He said it was a joke after 5,000 minutes lol
That was my fault- it was clearly a joke but I was too busy writing my three points to laugh - sorry Bo 🤦♂️
It was so funny we all forgot to laugh
I know Brian misspoke but at 1hr 7 min and 4 seconds he says "carpet munchers" and Bo can't hold in his laugh 😂😂😂
26:15. Love the discussion! Bo's comment re: it's fine to pay cash was funny. It was refreshing to see you hold the line on the 20/3/8 rule.
Thanks for another excellent episode!
First and most important bill of the month is the one to yourself! ALWAYS pay yourself first. You are worth it!
Everyone got a huge hit on their net worth last year and it will be the same this year. My net worth end of 2021, 7.32 million. End of 2022, 6.1 million, currently 6.6 million. As long as you can live (like myself) off the dividends (cashflow is by far the most important thing IMO) then you are good to go.
Can anyone confirm if Bo was excited about this topic?
8:24 haha I was literally so excited I pre prepared mine on the 31st and finalized it on the 1st lol..
Yup
Clarification.....the industry hasn't had HUD statements for several years now but the Closing Disclosure is a closing document that replaced that.
Lots of things have changed in the mortgage industry in the last 20 years but overall helpful to the public.
Glad to know Bo is excited about start of the New Year.
I hope next week is about secure act 2.0! This is the first I'm heading about it
Lmao. “Carpet munchers”. Hahahahha
Uh, that refers to something else. Cringe. Kids are rug rats. The other term is part of the activity that gets them into existence. 🙈
@@genxx2724 No, the other term is meaningless.
I'd rather go for a run than cut back on spending. My spending is already cut, and probably could use a little more excercise 🙂
When tracking my net worth, I always create a fake liability account to offset closing costs on my house and to reduce the value of my car(s) so it's not over-valued. The house liability tends to be around 10% of the value pulled from Zillow or whatever site used. The car I knock off $1,500. On the other hand, I just use a (lowball) value on my RV.
Loved the live show! Keep up the great work
When I go into a closing on a house, I insist on having the title documents no less than 24 hours before I'm expected to sign. This gives me time to read the documents and verify that there's nothing I object to and that the title company has not made any mistakes. The first happened once when I actually had a problem with the wording in the title policy. The second happens all the time and I've never signed off on the first draft of closing documents.
In order to fund 5 to 10 year goals open a after-tax account put it in the s&p 500 let it grow and then when you need money borrow from it
That’s what I do. It doubles for starting that third bucket
How do you borrow from it? Is that margin on the account?
I am currently waiting for my statement from my 401k so I can get the breakdown of pre and post tax since it doesn't show it on the dashboard.
With SECURE 2.0, Roth 401(k) employer matching is only available if the employer changes the terms of the plan. At the earliest employers probably won't start making those changes to 401(k) plan documents until later this year.
We have a company ESPP and a pension. It makes it easier when we all get the same deductions because you know the guy beside you gets paid the same and can survive. I'm saving 40+% of my old gross. I increased my gross but don't have any numbers yet. I spent more last year but was running bare bones for 2 years. I had leveraged investments and dedicated a huge weekly payment to eliminate the money I borrowed. It all worked out great. When the rates rose, I had the money to pay off the investment loan.
I've got nothing to buy (seriously, I have a lifetime of prosumer and luxury type products) and the government in Canada has some new investment tools. I'm looking forward to keeping all that I can. Next year long term investments are coming due and I will be tax efficient when they do. Car payments done this year (I beat the interest rate by over double the entire time). I am using the LOC again even at crazy rates to bridge a loan for someone exiting. I still get interest payments and they are covering the interest costs. I have an interest free loan!!
I was a 51 / 59 / 65 dweller, only bcz I didn’t know any better .. and like the guys are saying, it got worse from there - it did not get better on its own.
Yes sling shot, keep market low now , love it buying low😊
Would like to hear their thoughts on vehicles for work as a contractor/self employed (say a truck for hauling a trailer).
I have no problem with the idea of having a car loan. As long as I have relatively liquid assets that are paying more than the loan, why wouldn't I keep the loan?
I have an RV loan that's about $100K. The rate is 4.99% for 20 years. But I have more than $600K in fixed income investments and much of that is paying more than 6.5%. I could sell those tomorrow to pay off the RV loan, but then I'd lose the leverage on my investments.
18:09 This is a year later but I was wondering, is an after tax account same as a personal brokerage individual account? (separate from retirement)
Bo!
Love y’alls channel man.
Miles vs meters 😂
As your college roommate, I know you know what a mile is 😝
Keep up the good work 👍
I never realized how nice the mic quality of the show was
I just can’t bring myself to get into a fidelity index target date…. The returns are just, bad
How can we get a copy of the Fidelity survey results? 😮
“Even if you’re gonna drive it for ten years.” Bo must know that fifteen years is often achievable, right?
I check on an almost daily basis. Mostly as an exercise in discipline and to remove any tendency to react emotionally to changes. I have to say, watching the decreases in 2022 and the fact that those losses have still not been made good in 2023 indicates that my risk tolerance is high.
Now my plan has to be how to mitigate the dips, so I will have to figure out how to use leverage to do that in retirement.
It’s no longer a HUD, it’s a CD now 😎
Where can people ask questions for you guys to answer on your show?
I think you have to be on the live stream and submit them in the chat.
@@Lucky008aau Thanks, Chris!
“Piggy back policy for practically pennies on the dollar”
Do you think it's wise to spend 3% of my net worth on a new car? I plan to finance it for 1 year. No other debt.
What if you have less than 1% interest? BTW my cars are all paid off, but I don't see the benefit to paying of a zero percent interest loan early.
As long as you have a proper emergency fund then you would be correct
@@masonhock6442 Yep easily 2 years.
Can we have a financial mutant show for us 20 year olds? Give us the numbers for being in the top 5%, 1% of people.
You are going to love the Net Worth show dropping this Friday 🙌
38:00 that question really seemed to stump them they didn’t have a good response tbh
Only 7 mins in and my eyes have popped out of my head. WTF America
Can't you always take out what you put into a Roth? Even under 59
Yes that's the "basis" they're referring to
Step 0 for next year? Already dropping 45% into the market due a kid coming soon.
Maybe just to redo the budget is step 0
Lol. Does Bo know that a 5K is 5000 meters and not miles?
Seller always pays closing cost. Only a sucker would pay twice.. once when they bought and then when they sold… Bad advice guys!!!
LOL don't include jewelry on your net worth. Also don't look at the resale value of your jewelry compared to what you paid for it, it'll make you cry.
Did Brian refer to kids as carpet munchies around 1:07:05?
Did he say "Carpet munchers running around...!?" ahahahahahahahah 1:07 (what the hell is he talking about) hahaahahahah
No mention of that at 1:07, did you get the timestamp right?
Did he mean to say Curtain Climbers? 😂
@@tessacaldarella I think he did! But hilarity ensued instead 😆. Btw the correct timestamp was 1:07:00
@@amireallythatgrumpy6508 correct timestamp was 1:07:00 🙂
@Nic Stevens I think he meant to say "curtain climbers" but hilarity ensued instead 😆. Btw the correct timestamp was 1:07:00
Did Bo say a 5k is 5000 miles? 😂
Did he say carpet munchers???😂
Only watched the first few minutes but could not disagree more. The first step is determining what you are saving money for, not discipline. If you don't know why, you will never put real effort into saving, and you have no idea if you are saving too little or too much.
I think I'm thr only person who made money in the stock market for 2022
Pay cash for your car .. beg borrow bike ber or bus for 3-4 months while u put ur $500 / mo payment in the bank 4 times, add the 800 u don’t spend (but will be shortly) on insurance, and buy a car for $2800 .. won’t last long, doesn’t have to.. 6 months later u have 3000 in the bank, sell the first one for 2000 and buy a car for 5000 .. a year later u have 6000 in the bank, sell what u drive for 3000 and buy a car for 9000 .. 2 1/2 years later u have 15,000 in the bank, sell what u drive for 5000 and buy a car for 20,000 .. 5 years later u have 30,000 in the bank, sell what u drive for 10,000 and buy a (new) car for $40,000 cash. Repeat every 5 years.
I feel your wife’s pain. 😂
: )
I had a $25 baby in 2000. The other three were free…courtesy of Uncle Sam and my Army Service. Do you hate me also Bo?
Maybe do a show for those 60% of people struggling to get by instead of making fun of them for not being as rich as you.