Money Guy Show: "64% of Americans Are Stuck Here Financially (Are You?)"

Hosts: Brian Preston & Bo Hanson
Date: December 26, 2025
Episode Theme:
This episode tackles the alarming statistic that nearly two-thirds of Americans lack a financial plan and are financially "stuck." Brian and Bo use their signature "Financial Order of Operations" as a roadmap, breaking down where Americans are on their wealth-building journey, where most go astray, and how listeners can advance confidently toward their money goals. The episode is filled with stats, practical advice, and memorable analogies—all aimed at helping listeners stop wandering aimlessly and start making their money work for them.

Episode Overview

Brian and Bo examine why 64% of Americans lack a financial plan. By dissecting each step of their nine-step Financial Order of Operations, they show how Americans get stuck, what the data reveals, and how to move forward. The hosts emphasize the accessibility of wealth-building with the right strategy and discipline, sharing stats, actionable tactics, and the behavioral coaching listeners have come to expect.

Key Discussion Points & Insights

1. The Problem: Americans Without a Plan

• Statistic: 64% of Americans lack a financial plan.
  • "It breaks our heart... because building wealth can be amazingly simple." – Bo Hanson [01:26]
  • Many Americans are unaware a better way exists; the hosts want to illuminate that path.

2. Step-By-Step Breakdown of the Financial Order of Operations

Step 1: Highest Deductible Cover

• Purpose: Protect yourself from catastrophic financial events by saving enough to cover your highest insurance deductible.
• Stat: Mean American holds $8,000 in transaction accounts (checking, savings, etc.), but deductibles often range from $4,500 to $10,000+.
• Key Insight: Many could be unable to handle a major emergency.
  • "[Step one] is the very first buffer between you and life's desperate decision." – Bo Hanson [03:29]
• Tip: Maximize your cash by placing it in high-yield accounts; don’t settle for brick-and-mortar bank rates.
• Memorable Quote: "Just make sure your cash is doing." – Brian Preston [06:03]

Step 2: Employer Match

• Purpose: Get free money through employer-sponsored retirement plan matches.
• Stat: 34% of Americans don’t get their full employer match (Vanguard).
• Memorable Moment: Brian compares ignoring a match to walking past a $20 bill on the street.
  • "We get so excited [to find] $20, but we pass up on thousands in the employer plan." – Brian Preston [06:47]
• Millionaire Stat: In Q2 2025, over 500,000 people reached 401(k) millionaire status.
• Key Insight: 401(k) often first account to reach 7 figures.

Step 3: High-Interest Debt

• Purpose: Eliminate debts (credit cards, etc.) with high-interest rates that sabotage wealth-building.
• Stat: 46% of Americans carry a high-interest debt balance.
  • "Credit card use is A-OK, but credit card debt is a NO way." – Brian Preston [09:19]
• Methods: Snowball (smallest balance first) vs. Avalanche (highest rate first)—just pick one and pay it down.
• Behavioral Impact: Paying off debt is also “leveling up your discipline” [10:34].

Step 4: Emergency Reserves

• Purpose: Bridge the gap during extended hardships (job loss, etc.) by holding 3–6 months' living expenses.
• Stat: 54% of Americans can’t cover three months of living expenses (CNBC).
• Guidance:
  • Three months: If you have high job security, dual incomes, and flexible lifestyle.
  • Six months: If the opposite.
• Quote: "Emergency reserves... are your bridge to not making bad decisions." – Brian Preston [12:04]
• Analogy: Emergency fund = Safety net under a tightrope.
• Psychological Benefit: Reduces worry and creates margin for happiness [14:30].

Step 5: Tax-Free Accounts (Roth, HSA)

• Purpose: Build wealth in vehicles where growth and qualified withdrawals are tax-free.
• Stats:
  • Only 36% of Roth IRA contributors max out their account.
  • Only 13% of Americans invest their HSA (most treat it as a slush fund).
• Quote: "If you can build $1,000,000 in a Roth IRA... that’s literally tax-free money. Your million dollars is really worth a million dollars." – Bo Hanson [17:13]
• Key Message: Max out these accounts because the government limits access for a reason.

Step 6: Max Out Retirement

• Purpose: Move beyond just saving a percentage—fully fund your retirement accounts.
• Stat: Only 14% of Americans max out their 401(k); 53% of those earning $150k+ do.
  • "It’s basically a coin flip... great situation, but half of Americans miss the mark." – Brian Preston [22:04]
• Insight: Maxing out isn’t reserved for “the rich”—for many, it’s possible with a $128,000 household income.

Step 7: Hyper Accumulation (Save 25% of Income)

• Purpose: Build wealth rapidly by saving (and investing) 25% of your gross income.
• Stat: Median American savings rate is 5.3%.
  • "Rather, we would have you aspire for saving 25%... so you can have the freedom to build the future life you want." – Bo Hanson [25:17]
• Tip: Adjust expectations by age—10–15% savings in your 20s is okay, but most people don’t get serious until 36, when you need to save 25% to catch up.
• What Counts: Only contributions towards future financial independence (not 529s, paying off house, etc.).

Steps 8 & 9: Abundance Goals & Debt Prepayment

• Step 8: Pre-pay future expenses or chase "abundance goals" – unique to each person.
• Step 9: Pay off low-interest debt (mortgage, etc.).
  • "Personal finance truly becomes personal." – Bo Hanson [29:37]
• Key Point: No stats—these steps depend on where you want your money to take you.

3. Financial Stress & The Path Forward

• Stat: 71% of Americans say money is a significant source of stress.
• Philosophy: Money shouldn’t be a chronic source of anxiety; the right plan removes regrets and replaces worry with fulfillment.
  • "Besides the birds and the bees, I feel like money is the other thing families avoid talking about." – Brian Preston [30:30]
• Hosts stress the value of lifelong financial education and building wealth by following their system.

Notable Quotes & Timestamps

• "64% of Americans don't have a financial plan. And frankly, that breaks our heart." – Bo Hanson [01:26]
• "If you start a journey and you don't know where you're going, you're basically wandering around woods." – Brian Preston [01:49]
• "Don't assume just because you're covering this risk that money has to sit there doing nothing." – Bo Hanson [05:14]
• "Credit card use is A-OK, but credit card debt is a NO way." – Brian Preston [09:19]
• "Emergency reserves... are your bridge to not making bad decisions." – Brian Preston [12:04]
• "If you can build $1,000,000 in a Roth IRA... that’s literally tax-free money." – Bo Hanson [17:13]
• "It’s basically a coin flip... half of Americans miss the mark." – Brian Preston [22:04]
• "Median American savings rate is 5.3%. We want you saving 25%." – Bo Hanson [25:17]
• "Personal finance truly becomes personal." – Bo Hanson [29:37]
• "Money... is the other thing families avoid talking about." – Brian Preston [30:30]
• "Don't let yourself fall into the statistic of money being a source of stress. Rather let money just be a tool." – Bo Hanson [31:24]

Timestamps for Key Segments

• [01:00]: Main problem statement – two-thirds of Americans are stuck.
• [03:29]: Step 1: Highest deductible cover.
• [06:47]: Step 2: Employer match; why people ignore free money.
• [08:43]: Step 3: High-interest debt; behavior tips.
• [11:42]: Step 4: Emergency reserves; how to size your fund.
• [15:43]: Step 5: Tax-free accounts (Roth, HSA).
• [20:05]: Step 6: Max out retirement accounts.
• [24:20]: Step 7: Hyper-accumulation and savings rate benchmarks.
• [29:08]: Steps 8–9: Abundance goals and personal finance turning personal.
• [30:30]: Money as a source of stress; how to avoid regrets.

Final Takeaways

• Start with a Plan: Wandering financially is avoidable with a clear, tested system.
• Follow the Steps: The Financial Order of Operations acts as a reliable roadmap—protect, save, invest, eliminate bad debt, and then enjoy abundance.
• Mind the Stats: Most Americans are under-saving, not taking advantage of tax-favored and employer-sponsored plans, and carrying too much high-interest debt.
• Aim Higher: Don't settle for "average" outcomes. By saving 25% and following a disciplined approach, you maximize flexibility and financial peace.
• Education is Key: Take advantage of the Money Guy's resources to move past stress and confusion into confidence and fulfillment.

For More Resources:
Visit moneyguy.com/resources for supporting guides, savings rate charts, and more.

Tone:
Friendly, encouraging, a mix of tough love and practical optimism. The hosts blend data with down-to-earth analogies and a dash of humor, aiming to empower listeners toward action.