Podcast Summary: Money Guy Show

Episode: Do THIS to Fix Your Finances in 2026
Date: December 3, 2025
Hosts: Brian Preston and Bo Hanson

Episode Overview

In this episode, Brian and Bo focus on actionable, foundational steps to gain control over your finances in the coming year, with a special emphasis on the power of tracking your net worth. They walk through how and why to use a net worth statement, discuss the right mindset for financial growth, answer listener questions on investing and budgeting, and share practical, real-life strategies to accelerate wealth building and avoid common money pitfalls. Their tone is energetic, approachable, and occasionally humorous, mixing high-level concepts with down-to-earth personal stories.

Key Discussion Points & Insights

The Net Worth Statement: Personal Finance’s Swiss Army Knife

[00:44–11:13]

• Why Start with Net Worth:
  Brian calls the net worth statement the universal “Swiss army knife” of personal finance; it’s “the statement that gives a detail of where you are right now… Because how on earth can you know where you’re going if you don’t know where you are today?” (Bo, 01:12)
• Who Should Do It & When:
  • “No age restriction… whether you are 18 or 88… any age or stage of life, if you have debt or you’re crushing it, high earner or low earner.” (Bo, 01:44–02:25)
  • It’s not about whether your number is positive or negative. “Even if you have a negative net worth, you should start tracking it today.” (Bo, 02:55)
• Components of Net Worth:
  • Assets: cash, checking/savings, investments (all tax buckets), business interests, real estate, cars, collectibles, etc.
  • Liabilities: credit cards, personal/auto/student loans, mortgages—even negative balances.
  • Unique Money Guy take: Value your home at the lower of cost plus improvements, not inflated market value: “Home equity can’t be used without selling or debt, so don’t let a housing bubble give you a false sense of security.” (Brian, 04:52)

The Why and How of Annual Net Worth Tracking

[07:44–12:52]

• Annual Ritual: “We love closing out the year end… it’s the annual tradition that Bo and I have to do our net worth statements.” (Brian, 07:44)
• Using the Money Guy Tool: They invite listeners to use their net worth tool, the same spreadsheet they use, with a dashboard for tracking liquid net worth, debt payoff, and asset accumulation.
• Communication & Spousal Teamwork: “Not only does my wife know where this is if I was not here, but… we use this in our annual… date day.” (Brian, 11:27)
• Memorable Moment: Brian shares his tradition of taking a whole day off with his spouse for an annual financial review, combining the hard numbers with future dream planning—showcasing how money tracking, when done together, fosters teamwork.

Listener Q&A Highlights

Investing: Total Stock Index vs. S&P 500

[13:27–17:35]

• Diversification: “Total market index gives more exposure to small/mid caps… but overlap is high. Both are fine for beginners, but as your assets grow, get more specialized for better rebalancing and tax planning.” (Bo, 14:32)
• Generalist vs. Specialist: Early investors can stick to generalist index/trgt funds; as you accumulate, move to more specialized funds for granular control.

Car Buying: The 23/8 Rule with Multiple Cars

[19:46–24:27]

• Rule Clarified: “23/8 means 20% down, finance for max 36 months, payments no more than 8% of gross income—across all cars.” (Bo, 22:09)
• “Cars are napalm for your finances...the biggest mistake I see is people taking on massive car debt. That’s why we say ‘think Corolla, not Land Cruiser’ until you hit level 8 in the Financial Order of Operations.” (Brian, 22:48)

Savings Rate & Early Retirement

[24:27–29:55]

• Audience Case Study: Nathan, 28, drops from saving 26% to 19% due to a big pay raise (losing employer match). Brian and Bo say:
  • Early start, high savings, you're ahead.
  • If planning early retirement, savings must ramp up (think Fire movement at 40–50% rates).
  • “Money is just a tool for your goals. Get specific about what you want, assess progress, then decide if you need to ramp up savings.” (Bo, 26:38)

Asset Location & the Three Bucket Strategy

[34:07–41:43]

• Growth & Tax Efficiency: “Stick your growth (but not speculative) assets in the Roth first—‘don’t we all want to be tax-free millionaires?’—then taxable, then tax-deferred. But always prioritize correct allocation over location!” (Brian, 36:00, Bo, 41:07)

Tracking and Footnoting Special Assets (529s, Pensions, etc.)

[56:14–60:00]

• 529s and similar accounts shouldn’t count as your assets on your net worth statement—they’re prepaid future expenses or for your kids, not your wealth.
• Maintain footnotes for clarity (insurance, pensions, guardians, etc.)—the net worth statement as “decoder ring” for your estate and family.

Financial Miser Mentality

[48:30–55:44]

• Listener Issue: Doubling income, but still penny-pinching—hurting lifestyle.
• Advice:
  • Ask yourself why you’re penny-pinching—is it old habits, anxiety, or a real need?
  • “25% savings is the unlock—if you hit this, you can ‘spend freely without guilt.’ Don’t lose the plot—money’s a tool, not the goal.” (Bo, 50:00, 53:00)
  • Don’t let extreme frugality ruin relationships or prime life experiences.

Notable Quotes & Memorable Moments

• On Annual Tracking:
  “If you can start tracking it today, you will be amazed at how much ground you can cover in one year. You’ll be blown away by how much ground you can cover in five years. And you will not even believe how much you can cover in 10 years. But you won’t know if you’ve not started tracking it.”
  – Bo, [10:15]

• On Home Equity Illusion:
  “You would have a false sense that, hey, I made a gazillion dollars last year because my house… It wasn’t because of your behavior. And that skews your dashboard view as the executive of your financial situation.”
  – Brian, [06:13]

• On Car Buying:
  “Cars are napalm for your personal finance. The car payment is usually the first huge mistake I see people making—even beyond student loans.”
  – Brian, [22:48]

• On Financial Communication with Spouse:
  “We use this [net worth statement] as a communication tool… we do a whole date day… planning around what does the dashboard from the net worth tool say, what are our goals for next year?”
  – Brian, [11:27]

• On Avoiding Regretful Frugality:
  “When your kids don’t want to go on vacation with you because you still got them sleeping in the closet in a sleeping bag in a blow-up mattress because that’s cheaper…you might be losing the plot on what money as a tool can and cannot do for you.”
  – Brian, [52:30]

Important Timestamps

• Net Worth Statement Essentials: [01:04–02:55]
• How to Value Your Home & Real Estate: [04:52–06:13]
• Listing Debts and Liabilities: [07:02]
• Why Track Net Worth Now: [07:44]
• Customizing Net Worth Tools & Comms with Spouse: [11:13]
• Q&A – Total Stock Index vs. S&P: [13:27]
• Q&A – Car Buying Rule (23/8) with Two Cars: [19:46]
• Q&A – Savings Rate/Early Retirement: [24:27]
• Q&A – Asset Location (Three Bucket): [34:07]
• Q&A – Avoiding Miser Habits: [48:30]
• Q&A – Should 529s Appear on the Net Worth Statement?: [56:14]

Tone & Takeaways

Brian and Bo mix actionable advice with humor and sincerity. They emphasize that personal finance is about knowing your numbers, being intentional, and using simple but powerful tools (like a net worth statement) to set the tone for your financial life. Their underlying message is one of confidence and encouragement—whether you’re just starting, in the “messy middle,” or nearing financial independence, these foundational habits will take you further, faster.

Action Step:
Start your own net worth tracking tradition, be honest and consistent, use your numbers to communicate with your household, and don’t let fear (or over-seriousness) deprive you of a balanced, fulfilled life.

For more resources and tools mentioned on the show, visit learn.moneyguy.com.