Money Guy Show: Can You Really Become a Millionaire in 10 Years?

Release Date: August 15, 2025

Hosts: Brian Preston and Bo Hanson
Description: Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Introduction

In the episode titled "Can You Really Become a Millionaire in 10 Years?", hosts Brian Preston and Bo Hanson delve deep into the feasibility of achieving millionaire status within a decade. They critically examine five commonly touted paths to wealth, debunking myths and laying out the realities behind each strategy.

1. Chasing the Hot Trend: Speculating vs. Investing

Timestamp: [02:34]

Key Points:

• The allure of "get rich quick" schemes is prevalent, especially with the rise of social media influencers promoting hot stocks, cryptocurrencies, and options trading.
• Speculating involves short-term strategies aimed at quick profits and is akin to gambling.
• Investing is a long-term strategy focused on holding assets for years to generate sustainable growth.

Notable Quotes:

• Bo Hanson: “Speculating is definitely a short-term strategy that involves buying and selling assets in the hopes of making that quick profit. Investing is a long-term strategy that involves holding assets for years, if not decades.” ([03:04])
• Brian Preston: “Don't buy some stock or invest in some type of holding simply because someone told you it was the thing to do. If you don't know what it is you're investing in or why your dollars ought to be going into it, maybe it shouldn't take your time.” ([04:23])

Insights:

• The hosts emphasize the importance of distinguishing between speculative trading and genuine investing.
• They caution against following stock tips without thorough personal research and understanding.

2. Leveraging in Real Estate

Timestamp: [05:06]

Key Points:

• Real estate is often marketed as a straightforward path to wealth, but leveraging (using borrowed money) introduces significant risks.
• High monthly mortgage payments can strain finances, especially if market conditions turn unfavorable.
• Real estate requires active management, including handling maintenance, vacancies, and tenant issues.

Notable Quotes:

• Brian Preston: “Levered debt has risk. And that's the big thing we're trying to make sure is that this fits into your timeline, your financial order of operations, so you don't get left holding the bag because you were skinny dipping and we're swimming naked without the resources to keep you safe financially.” ([05:53])
• Bo Hanson: “Real estate, when we talk about market recoveries, real estate can drag the bottom. All you have to do is go ask anybody from that period, from really 2007 all the way to 2011, real estate kind of struggled through that Great Recession period.” ([21:07])

Insights:

• While real estate can build wealth, it is not a passive investment and requires substantial financial resilience to weather market downturns.
• The hosts advise ensuring a solid financial foundation before venturing into leveraged real estate investments.

3. Real Estate Flipping

Timestamp: [14:17]

Key Points:

• Flipping houses—buying, renovating, and selling for profit—can be lucrative but carries high risks and requires significant capital and expertise.
• The median house flip profit is around $72,000 gross, necessitating the flip of approximately 14 homes to reach a million dollars.
• Challenges include high upfront costs, potential market downturns, and the difficulty of scaling flips within a decade.

Notable Quotes:

• Bo Hanson: “It's not uncommon that in a bull market everything is going up. Those things that you speculated on may have worked and someone may talk to you at the cocktail party about the success that they had. And while it may be true, it's likely not replicable.” ([03:04])
• Brian Preston: “Every single time, you're going to have to come up with a down payment. Now, maybe you never buy the second flip until you've sold the first flip, but if not, you're going to come up with multiple down payments.” ([16:56])

Insights:

• House flipping requires meticulous planning, substantial funds, and the ability to manage multiple transactions simultaneously.
• The volatility of the real estate market can significantly impact profitability, making flipping a high-risk endeavor.

4. House Hacking

Timestamp: [09:51]

Key Points:

• House hacking involves purchasing a primary residence and renting out a portion to cover mortgage payments, thereby accelerating wealth accumulation.
• This strategy combines property appreciation with cash flow from rentals.
• Assumptions in case studies often overlook additional costs like maintenance, property taxes, and potential vacancies.

Notable Quotes:

• Brian Preston: “This is the closest to the brochure. If you can find other people's money to help you buy your primary residence and you take advantage of the low interest rates plus the ability to bring this together, it can work out pretty nicely when you're easing into the wonderful world of real estate.” ([11:37])
• Bo Hanson: “There's also the missing costs. I mean, there's going to be closing, maintenance, interest because you're renting property. So this is, this is not a passive.” ([12:10])

Insights:

• House hacking offers a more sustainable approach to real estate investing by generating rental income that can be reinvested.
• It requires active management and financial readiness to handle unforeseen expenses and vacancies.

5. Entrepreneurship

Timestamp: [23:34]

Key Points:

• Starting a business is often touted as a pathway to financial independence but comes with a high failure rate.
• Statistics: 20% of new businesses fail within the first year, 50% within five years, and only 35% survive beyond a decade.
• Success in entrepreneurship demands substantial capital, resilience, and a clear, purpose-driven approach.

Notable Quotes:

• Bo Hanson: “If you have an idea and start a business, it doesn't mean that starting tomorrow you're going to be profitable. Most small businesses take somewhere between two to five years before they even become profitable.” ([25:04])
• Brian Preston: “Make sure that you are patient when it comes to investing. We know that a lot of millionaires, that takes them about 28 years of saving, investing before they actually get their first million.” ([37:26])

Insights:

• Entrepreneurship requires a realistic understanding of the time and resources needed to achieve profitability.
• Passion and a strong conviction are essential to persevere through the challenges of building a business.

6. Index Investing

Timestamp: [30:10]

Key Points:

• Index investing is presented as the most passive and achievable path to wealth among the five discussed.
• To become a millionaire in 10 years through index investing, one would need to save approximately $5,000 monthly and achieve an average annual return of 10%.
• Flaws: Market volatility can impact returns, and saving such a high amount monthly may not be feasible for most individuals.

Notable Quotes:

• Brian Preston: “Assuming a 10% annual rate of return, if you invest $4,882 every month over the course of the next 10 years, you would have a million bucks.” ([30:56])
• Bo Hanson: “Index investing is probably the most passive. Where you can decide how much you need to save and then automate that process, you're probably setting yourself up for the most automatic way to get to your goals and build these assets up.” ([33:04])

Insights:

• Index investing emphasizes steady, disciplined contributions and compound growth over time.
• It requires realistic expectations regarding savings rates and market performance, highlighting the importance of patience and consistency.

7. Building a Financial Foundation

Timestamp: [36:13]

Key Points:

• The hosts advocate for a strong financial foundation before pursuing aggressive wealth-building strategies.
• Key components include increasing income, reducing expenses, disciplined saving, and investing wisely.
• Understanding and managing risk is crucial to prevent financial setbacks during economic downturns.

Notable Quotes:

• Brian Preston: “Figure out ways to increase your income. The bigger your shovel is, the more useful your shovel can be.” ([36:13])
• Bo Hanson: “Make sure you are patient when it comes to investing... If you get to the first million, the second million comes out much easier, the third million even faster.” ([37:26])

Insights:

• Wealth building is a marathon, not a sprint. Incremental progress through disciplined financial behavior is key.
• Automation of savings and investments can significantly enhance the effectiveness of financial strategies.

Concluding Thoughts

Brian Preston and Bo Hanson conclude the episode by reiterating that while becoming a millionaire in 10 years is possible, it requires a combination of disciplined saving, smart investing, and realistic expectations. They emphasize that passive strategies like index investing offer a more sustainable path compared to high-risk ventures like speculative trading or real estate flipping. Additionally, they highlight the importance of building a robust financial foundation to support long-term wealth creation.

Final Notable Quotes:

• Bo Hanson: “You control that through how you field general your army of dollar bills to maximize this moment, building wealth does not have to be incredibly complicated.” ([39:02])
• Brian Preston: “Do not quit just because the market goes down 20% or 25%. Take that financial mutant perspective and see it as an opportunity to get more value instead of quitting.” ([35:01])

Key Takeaways

1. Distinguish Between Speculation and Investment: Focus on long-term investing rather than chasing quick profits.
2. Understand the Risks of Leverage: Real estate leveraging can amplify returns but also increase financial vulnerabilities.
3. Realism in Entrepreneurship: Starting a business requires patience, capital, and resilience due to high failure rates.
4. Embrace Index Investing: A disciplined, automated approach to investing can yield substantial growth over time.
5. Build a Strong Financial Foundation: Increase income, reduce expenses, and invest consistently to pave the way for wealth accumulation.
6. Patience is Crucial: Wealth building is a long-term endeavor; maintaining discipline through market fluctuations is essential.

For more insights and resources on building your wealth, visit moneyguy.com.

Disclaimer: Abound Wealth Management does not offer personalized investment or tax advice through the Money Guy Show. The information provided is for informational purposes only and does not constitute financial, tax, investment, or legal advice. All investments involve risk, including the possible loss of principal.