Financial Advisors React to BONKERS Financial Advice

Summary

Money Guy Show: Financial Advisors React to BONKERS Financial Advice
Release Date: June 2, 2025
Hosts: Brian Preston and Bo Hanson

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Episode Overview

In this engaging episode of the Money Guy Show, hosts Brian Preston and Bo Hanson, alongside co-host Chris, dissect and react to some unconventional and, at times, questionable financial advice circulating on the internet. The trio delves deep into various financial strategies, debating their efficacy and offering listeners valuable insights into building wealth wisely.

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Critique of Unconventional Financial Strategies

Hustling for Quick Cash vs. Passive Investments

Bo Hanson kicks off the discussion by challenging a provocative piece of financial advice that suggests aggressively hustling to obtain quick cash. He summarizes the advice as follows:

Bo Hanson [01:03]: "Real estate doesn't make money. Making money is me going on the street corner right here and say, stop at cars. Can somebody give me 500 bucks right now? I need it right now."

He criticizes the notion of seeking immediate funds through unconventional means and investing them into real estate, questioning the practicality and sustainability of such an approach.

Brian’s Counterpoint:

Brian Preston [02:03]: "Here's what doesn't make sense to me though, right? Like, hey, I'm going to. You give me money. I'm going to. And I'm going to use. Borrow here."

Brian highlights the mismatch between short-term borrowing and long-term investment returns, emphasizing the lack of alignment in the proposed strategy.

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Debt: Productive Tool vs. Financial Burden

Bo Hanson’s Stance on Debt:

Bo vehemently opposes Dave Ramsey's anti-debt philosophy, advocating instead for the strategic use of debt to generate wealth. He states:

Bo Hanson [06:24]: "I'm teaching people to be poor because... Everything is about eliminating debt. If you have credit cards that are like at 18, 19, 20%, you should probably get those eliminated."

However, he distinguishes between consumer debt and productive debt, promoting the latter as a means to leverage funds for higher returns.

Chris’s Perspective:

Chris champions a balanced approach, coining the term "financial mutant" to describe individuals who skillfully navigate between eliminating bad debt and leveraging good debt for investments.

Chris [08:16]: "There is a walk here in the middle that's actually going to let you be that financial mutant that Bo was just describing."

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Evaluating Mortgage Strategies

Bo Hanson’s Advice Against Refinancing:

Bo warns against refinancing mortgages solely for the purpose of lowering monthly payments, arguing that it often leads to longer repayment periods and increased interest costs.

Bo Hanson [04:30]: "You need to go pay on the same timeline and you're going to pay it off much more quickly, going to save yourself tons of interest."

Brian Preston’s Rebuttal:

Brian offers a counter-argument, advocating for the prudent use of refinancing as a financial tool when aligned with strategic repayment plans.

Brian Preston [05:30]: "I love refinancing. I think it's a wonderful tool to use."

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The Pitfalls of Speculative Investments

Bo Hanson’s Experiment with Lottery Scratchers:

In a humorous yet insightful segment, Bo shares his experience of purchasing 662 lottery scratchers in hopes of winning big. Though he ultimately earns a modest return of $454, he underscores the futility of gambling as an investment strategy.

Bo Hanson [09:29]: "In total I made $454."

Brian’s Reflection:

Brian contrasts this approach with the Money Guy’s wealth multiplier tools, suggesting that informed investment strategies yield better results.

Brian Preston [11:16]: "I bet his mind would have been blown away. And I bet it would have been more than $454."

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Debating Precious Metals vs. Stock Investments

Bo Hanson on Gold and Silver:

Bo discusses the merits of investing in precious metals, highlighting their historical ability to hedge against inflation.

Bo Hanson [12:46]: "Silver's become way underpriced relative to gold... In 100 years, these will have beaten inflation."

Chris’s Counterpoints:

Chris challenges the practicality of holding physical precious metals, pointing out storage costs and the lack of tangible returns compared to stock investments.

Chris [14:10]: "You have to actually, if you want to have them in the physical form, you have to pay someplace to keep it."

Brian’s Insights:

Brian references Warren Buffett’s perspective, emphasizing the intrinsic value and long-term viability of stocks over shiny metals.

Brian Preston [13:20]: "Warren Buffett wrote this in one of his recent letters... a bar of gold is still going to be a bar of gold."

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Estate Planning and Tax Strategies

Bo Hanson on Revocable Living Trusts:

Bo explains how revocable living trusts can benefit heirs by offering a step-up in basis, thereby minimizing capital gains taxes on inherited properties.

Bo Hanson [15:47]: "The revocable living trust allows my daughter to get that step up in basis that 800,000 gets stepped up to a million."

Brian’s Additional Insights:

Brian elaborates on the mechanics of step-up in basis, clarifying that a trust structure isn't necessarily required to achieve tax-efficient inheritance.

Brian Preston [16:11]: "They get a step up in basis without having to do a complicated trust structure."

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Smart Car Buying vs. Costly Financing

Bo Hanson’s Negative Experience with Car Financing:

Bo narrates a scenario where he encounters unfavorable car financing terms, highlighting the importance of informed decision-making when purchasing vehicles.

Bo Hanson [18:10]: "There's no deal. We can't do it. It would be at 1244."

Brian’s Advisory:

Brian contrasts Bo’s experience with the Money Guy’s recommended car buying strategies, advocating for sensible financing aligned with one’s financial capacity.

Brian Preston [19:04]: "Do not buy a car that way... You need to be putting 20% down and financing for a shorter term."

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Concluding Insights and Takeaways

Throughout the episode, Brian, Bo, and Chris emphasize the importance of informed and strategic financial decisions. They advocate for a balanced approach to debt, prudent investment choices, and the utilization of their own Money Guy resources to navigate the complex financial landscape effectively.

Brian Preston [20:54]: "Building towards financial independence is incredibly simple, but it's not always easy. You have to make sure you're careful of who you let in your ear so you don't fall into one of the traps these people are laying."

Chris [20:54]: "We have the financial order of operations so you can live your best financial life."

Listeners are encouraged to visit moneyguy.com for free tools and resources, including a nine-step financial order of operations to guide their wealth-building journey.

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Final Thoughts

This episode serves as a critical examination of various financial advice trends, urging listeners to discern and adopt strategies that align with their long-term financial well-being. By balancing skepticism with actionable insights, the Money Guy Show empowers its audience to make informed decisions and avoid common financial pitfalls.

Transcript

[Brian Preston]

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[Bo Hanson]

Why do you hate Dave Ramsey? I don't hate Dave Ramsey. I just hate everything he teaches.

[Chris]

Are we going to finally have a video where you and Chris are like, united?

[Brian Preston]

It makes me so mad.

[Bo Hanson]

You need emergency money. Just go to the street corner and say, stop the car. Give me 500. I'll give it back to you.

[Chris]

When are we going to put an eagle scream? In our closing, the content minions have been busy and put together some more crazy content.

[Brian Preston]

Brent, I am so excited about this because oftentimes the Internet is unhinged and I have a feeling today is going to be no different. Let's dive right in.

[Bo Hanson]

Real estate doesn't make money. Making money is me going on the street corner right here and say, stop at cars. Can somebody give me 500 bucks right now? I need it right now. If you need emergency money, just go to the street corner and say, stop the car, give me 500, I'll give it back to you. I can get somebody out there to give me 500 bucks. You can't get that out of a real estate deal. But I would take the 500 and throw it in a real estate deal and go back to the street corner because I was out hustling 500. In that case, I was 30 years old hustling car dealers for money. I would get the money from the car dealer, the 1 out of 10 that said yes to me, take the money, throw it in a real estate deal, go hustle another car dealer.

[Chris]

He's basically saying, go out there and hustle. You got to go make the money. And then you got to put it into passive type investments like real estate. Grant kind of gives the his whole game up because that's been. He's one of those, he's smooth talking. He's like the, the Ric Flair of personal finance. You know, he's, it's all about how he looks and smoothly puts things. And then he gets you to. He basically is sharing, go buy his course, go his, you know, buy into this so he can go put it into his own passive strategy.

[Brian Preston]

He said, I was out There hustling. And I went to car dealer and the car dealer gave me money and I took the money, I went invest in real estate.

[Chris]

I'm assuming he's doing deals. Yeah, that's what he meant.

[Brian Preston]

Here's what doesn't make sense to me though, right? Like, hey, I'm going to. You give me money. I'm going to. And I'm going to use. Borrow here.

[Bo Hanson]

Yeah.

[Brian Preston]

I'm going to borrow money. You're going to give me money and I give it back to you in a year when I go put in a real estate deal. I don't get that money back in a year. That's not the way that real estate returns work. It's not something that it returns in a short term timeframe. So if you're doing like short term borrowing, but you're doing long term investing, which real estate is it doesn't even line up. Like, I don't even understand how he does that. I don't know that that's. I don't know. That's the advice that I would take to start building my financial.

[Chris]

I look at it as more of a confession grant. Just let us know. He's a great salesman. Take that into consideration.

[Bo Hanson]

A bad economy is a great opportunity.

[Brian Preston]

Is what I always say. If I had to start over again right now, could be really hungry for a slim job.

[Chris]

Now. How many people are on this planet? 7 billion.

[Brian Preston]

And how many people do you need to give you $1 to be a millionaire?

[Chris]

A million.

[Brian Preston]

That' Patriot Pete. I can't argue with Patriot Pete. The math checks out.

[Chris]

Did you not hear that? Closing the math. When are we going to put an eagle scream in our closing that? I mean, I think I want an eagle scream in every one of our intros.

[Brian Preston]

Like, you know what, Patriot Pete, when you are ready to come on making a millionaire, you just let us know.

[Chris]

That's not a real podcast.

[Brian Preston]

I'm saying skit. No, I bet Patriot Pete's a real thing. That's a skit. Here's, here's what I think.

[Chris]

Well done. If that's a real thing.

[Brian Preston]

You know what I agree with? Becoming a millionaire is so surprisingly simple. It's not going and asking 1 million people to give you $1 and come with a million. But if you can take a little bit of your money today, a little bit of your earned income today, and you can start just putting a little bit of it aside and investing those dollars, you would be amazed that. Would you believe for a 20 year old, if you want to have A million dollars by the time that you retire. Less than 100 bucks a month. They'll get it done. It does not take a lot if you have time to let your money work so you can become a millionaire. And I would argue you don't have to go, you know, beg people to give you money to do it.

[Chris]

I'll do you one better. We'll do it Patriot Pete style. You start out when you're in your early 20s. 95% of the account when you're a millionaire is growth from the investments, not what you put in, but from the growth.

[Brian Preston]

I knew beyond a shadow of a doubt you were going to do Eagle Scream. I knew it was coming.

[Chris]

It's true.

[Brian Preston]

Didn't doubt it for a second.

[Chris]

So my strategy is a little more realistic on the on in life, but it doesn't have the razzle dazzle that Patriot Pete had, unfortunately.

[Brian Preston]

Let's keep going.

[Bo Hanson]

You take your entire paycheck, you deposit it into the home equity line of credit to pay down your mortgage. You then write all of the checks for your bills out of the home equity line of credit. You use money from your home equity line of credit to pay your mortgage.

[Chris]

Your electric bills could be some life insurance.

[Bo Hanson]

You will pay off your mortgage depending on how much money you make in somewhere between 3 and 12 years instead of 30 years. Whatever you do, don't ever refinance a mortgage. Refining a mortgage to get a lower payment is a con job. They tell you the bank tells you the lower interest rate is that while you refinance line of credit to lower your payments. But you buy into that. But what they know they're not telling you is when you refinance that mortgage, you restart the terms of the loans and the majority of the payments for at least the first seven years goes to interest. So you're going to end up paying more at a lower interest rate with a lower payment on a refi than you would have ended up paying the bank if you had just kept on making the same old mortgage payment.

[Brian Preston]

Unless. Unless you either keep making the same mortgage payment just like what he said, because I agree with that, or you just recalculate a paid off of the same timeline even though the mortgage company will let you spread it out for another 30 years or spread it out for another 15 years depending on the mortgage. You do not have to pay over that amount of time. You can continue paying on the same timeline and you're going to pay it off much more quickly, going to save yourself tons of interest. I love refinancing I think it's a wonderful tool to use.

[Chris]

If you refinance only take the lower interest rate and reset the amortization, that's a problem. But you don't have to make that choice. And I also worry he was starting to dabble into the infinite banking type structure. So there's going to be another video or there was. There's a part two to this where he's going to buy you some life insurance in the background. You don't have to fall into the trap he laid out. You can make better choices with your money.

[Bo Hanson]

Should I pay off my house? Why do you hate Dave Ramsey? I don't hate Dave Ramsey. I just hate everything he teaches. He's teaching people to be poor because.

[Chris]

Why is he doing the interview barefooted?

[Bo Hanson]

40 years of time that they have to make money and he wants to donate it to getting out of debt and paying graphic. You can't eat no debt. You can't travel on no debt. There's a flaw in the practice. It's. Everything is about eliminating debt. If you have credit cards that are like at 18, 19, 20%, you should probably get those eliminated. When people have most moderate debts at 4, 5, 6%, you fire people up in a frenzy to, oh my gosh, hurry, you shouldn't be able to sleep at night. Get your debts paid off as if the world's worst thing. It's called positive arbitrage. I borrow money at 5% all day long and get it making 20%, 30%, 1,000%. And when I borrow at 5 and I'm earning 20, the difference is 15. I'm making 15 on debt. That is a productive debt. It is a good debt. That debt makes me money. And Dave just wants to act like all that's bad. I'm like, no, no, consumer debt is bad, but debt is what this country is built on. Debt is what the wealthy are built on. Debt is about controlling money to make money. And that has fallen on deaf ears in his community.

[Chris]

Are we going to finally have a video where you and Chris are like united?

[Brian Preston]

It makes me so mad. Sing it. Sing it, bro. It makes me so mad because the content team knows they don't need to give me something or me and Chris are like. But I don't disagree with him entirely and completely because I do think a lot of people and even people that follow Dave, they get so passionate about being completely debt free that they end up making suboptimal financial decisions like paying off very low interest mortgages or focusing on satisfying debts. That maybe don't make sense to satisfy based on where they are in their financial order of operations. But here's what, where I do disagree with Chris a little bit because I can never agree with him fully. You got Dave on one extreme. No debt. No debt, no debt. And you got Chris on this other extreme.

[Bo Hanson]

All the debt.

[Brian Preston]

All the. All the debt. I think that financial mutants can actually live somewhere in the middle. That there are debts that make sense that you should utilize. But that doesn't mean that you ought to go in his terms. Borrow at 5% all day long. So you can go out there and make a thousand by the way. Make a thousand percent. How about let's just borrow at 5% and we could go make, I don't know, 8 to 11% which is much more reasonable long term rate of return.

[Chris]

Dave is a debt crusader. And then Chris out here wants to leverage, leverage, leverage. There is a walk here in the middle that's actually going to let you be that financial mutant that Bo was just describing that lets you leverage debt as a tool. But also understand the power of putting your money to work and being a financial mutant with your army of dollar bills so that you can navigate this in the perfect kind of balance of these two forces. You don't have to go on the extremes. The happy place is right there in the middle where you know what a tool is. Because money is only a tool. And we're just trying to help you maximize every opportunity you have.

[Brian Preston]

And if you want to know how to do it right and how to approach this, it's why we came up with a financial order of operations. You can go to moneyguy.com resources and download your free nine step process to figure out exactly what to do with your next dollar Foo for you.

[Chris]

Who can make the most money in an investment account?

[Brian Preston]

Warren Buffett Trust.

[Bo Hanson]

This stock market. It's rigged. I'm going to how the people make their money scratch. So I went to eight different liquor stores and I bought 662 scratchers. That is so bad.

[Chris]

Oh my God.

[Bo Hanson]

Specifically pumpkin patch Cash.

[Brian Preston]

What show is this?

[Bo Hanson]

The possibility of winning.

[Chris]

This is great though.

[Bo Hanson]

Thousand dollars. My God. And then spent almost three weeks in between meals when I would wake up early. So in this session I think I only scratch about a third of the total amount. Look at the sun.

[Chris]

Yeah.

[Bo Hanson]

You can watch the sunset on. And also the thought that this was a good idea. So in total I made $454.

[Chris]

Wow. He actually made money though.

[Brian Preston]

Sorry.

[Chris]

That is.

[Bo Hanson]

600 and something in that video. I really think this is going to be.

[Chris]

None of you take into account how.

[Bo Hanson]

Much time in that video I keep going, oh, is that 1,000? Oh, it's only 10. Don't gamble, kids. There is no cash in the pumpkin patch.

[Brian Preston]

That's me on an emotional roller coaster because I thought this was going to be legitimate. And he arrived at the conclusion. Hey, this doesn't work. Now, I do have a confession. Can we. Can I confess?

[Chris]

Confess them.

[Brian Preston]

I do love the narrative around whenever I got to get a white elephant gift. Or maybe if I'm doing stocking stuffers, I'm a big scratcher, stocking stuffer, white elephant guy. And what I say is, this is better than a present because what you can do is, this is a dream. If you scratch this thing off, you can imagine all the things you're going to do with all this money you're going to win. I have yet to give a jackpot winner away.

[Chris]

When I worked at Delta loading luggage, we had a lot of downtime between the planes coming in and they always were playing lottery. You know, the pictures. Maybe it's because I was too close coming out of UGA with the HOPE scholarship, I was just like, you can't pay for all this education if everybody's winning the money. Casinos, anything is speculative like that, you never go get ahead.

[Brian Preston]

It'd be interesting. I'd wonder how much that guy spent on all those scratchers. And if you went to moneyguide.com resources and checked out our wealth multiplier tool, I bet his mind would have been blown away. And I bet it would have been more than $454.

[Chris]

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[Brian Preston]

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[Chris]

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[Brian Preston]

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[Bo Hanson]

16 of these was the same value as the gold coin. Now is three of these. Silver's become way underpriced relative to gold.

[Brian Preston]

Before 2005, gold and silver tracked pretty.

[Bo Hanson]

Much at the same relative price. So does that mean we should all be buying silver or gold? I don't think you should choose between them. I think if you don't have thousands.

[Chris]

Of silver, buy them all from me. That's what he's thinking.

[Brian Preston]

Silver is a great way to start.

[Bo Hanson]

In 100 years, these will have beaten inflation. So you'll be able to buy more or at least the same with these.

[Brian Preston]

So this is real money, which is why I talk about it.

[Chris]

That was a true statement. They will beat inflation. That's really the only thing they.

[Brian Preston]

That's what they're pegged against. That's exactly right. It's a fear index. Right? Like all that really happens is the price of these precious metals increase when fear is high and they decrease when fear is low. You know, Warren Buffett wrote this in one of his recent letters. I don't know what the price of one bar of gold is going to be 50 years from now. But here's what I do know. 50 years from now, a bar of gold is still going to be a bar of gold.

[Chris]

Gold.

[Brian Preston]

It's not going to create anything. It's not going to manufacture anything. It's not going to change anything. It's not going to innovate anything. It's literally just going to be a hunk of shiny metal. And the only thing that's going to make it more valuable is if the person who comes behind you is willing to pay more for it than you paid for it. So you better hope that you're going to buy it when things aren't scary and sell it when things are scary. He said American business is very, very different than that. And he walked through how stocks perform much differently than precious metals.

[Chris]

I like my investments to actually create and make money. When you do precious metals, you have to actually, if you, if you want to have them in the physical form, you have to Pay someplace to keep it. And if you don't want to personally hold it, you have to pay somebody else to keep it safe. So there's a cost there. All the people who think that this is what's going to protect you when the world comes to an end, how is that going to keep you break off a corner of it? I mean shave off or what's to keep somebody from just coming in, taking it from you? Yeah, I just don't think it's giving you the full, full spectrum coverage of catastrophic failure that you think it is. So that's why I'm not a big fan of, of buying precious metals. You can dabble in it, but just don't let that be your, your driving force of your portfolio, mate.

[Bo Hanson]

Excuse me, can you swap these for.

[Chris]

A ten dollar bill please? Yeah, that'll be, that'd be really great. Fantastic. Did you count to make sure it's 10? Count it, make sure for me. That's definitely 10. It's nine.

[Bo Hanson]

Nine.

[Brian Preston]

Yeah.

[Chris]

Oh, okay. Hang on. There you go. That'll be 10. Fantastic. In fact, wait, hang on. If I give you that, that's 20, could you give me a 20 bill? Yeah, that'd be even better. Yeah. Thank you so much, mate. Cheers for that. Okay. Thank you mate. Have a good one. You'll ever make you see this at the cash register all the time is that somebody will miscount and give you the wrong check. You just always need to be paying attention that you get the right change and other things. That was just the shifted his focus to something else and then took $10 from it.

[Brian Preston]

Yeah. There's no financial lesson here other than don't steal money from people. That's the takeaway. Don't be a thief because that's exactly. I want to somehow tie this to like investing strategy and why Roth IRAs are amazing, which they are. But also just don't be a criminal.

[Bo Hanson]

If I bought a property for $200,000 and at the time that I die, it's worth $1 million, that's an $800,000 gain that my daughter would have to pay taxes on if I didn't have a revocable living trust. The revocable living trust allows my daughter to get that step up in basis that 800,000 gets stepped up to a million. Now she can turn around and sell a million dollar property and pay no capital gains taxes on it. Right. That's tax free wealth.

[Brian Preston]

It's going to get a step in basis either way. Even if there's not a Trust structure there. Whenever you die holding an asset, your people that inherited, they get a step up in basis and the value of that asset, it makes the capital gang go away. It's not required to have that held inside of a revocable trust for this to happen. You could just have something held in your individual name. Or if, you know, mom and dad pass away and they owned a home that they bought 30 years ago and now the home is way up in value, it gets a step up in basis without having to do a complicated trust structure to make that happen.

[Chris]

Now, look, you definitely want to have trust and other things potentially as you get more sophisticated. But sometimes when you get more sophisticated and more complex, trust do come into play. Especially depending on if you live in a estate that's good versus bad with probate and so forth. But I don't know. I don't. I think. I feel like I was missing some context there.

[Brian Preston]

And I think you also need to be careful following someone's tax advice or estate planning advice or financial advice that has something they want to sell you. So if you talk to someone who's on the legal field and they're going to recommend for an estate plan, that's probably going to be very, very complicated from a legal standpoint or if you talk to a tax person, it may be very, very complicated from a tax standpoint. You want to make sure that the strategies you're implementing actually make sense for you. So for most people, a trust structure might not be absolutely necessary unless there's some reason to substantiate having that in place.

[Chris]

And they need to be good for also who you leave behind. Don't leave your. Your. Your loved ones, some complex structure that they spend years trying to unwind.

[Bo Hanson]

How many miles are on it? 26. Only reason I haven't serviced it yet because I'm literally planning on buying a new car, bro. So you know what I'm saying? Yeah, yeah, yeah. I'm about to get flamed. Let us do this through the service.

[Chris]

It's all good.

[Bo Hanson]

You said you owe 29, I owe 29. Well, you can work with your brother here, man. We'll try. Call my brother and see. It's a cool car.

[Brian Preston]

You don't see.

[Bo Hanson]

It's. It's a super sick car. How much money down you got, bro? Honestly, like five.

[Chris]

Five.

[Bo Hanson]

Like, dude, the thing is, like, if the numbers work with the glee, like, I'm not going to waste your time, bro. If this nice. Go next door, park it there, and I'll see you back in the office. I'm not feeling too confident to be.

[Brian Preston]

Honest with you yet.

[Bo Hanson]

Cuz it's a lemon. But let's see. 1348 is where we at now. I can't just roll negative X equity onto my next like. I'm just not doing that. I just can't go out of pocket like that, bro. Where did you think you want to be? I want to be at 12, bro. So even if we gave you 30, 500, you're at 1464. Yeah, we're not that far. No, it's not super far in the 12s, bro. I don't think we can get there. That's pretty far. Even if I discounted my car like to 75, you're $10,000 apart. What's the max you can put down? Max would be.

[Chris]

There's no way.

[Bo Hanson]

If you can get me at 1280, I'll do.

[Chris]

If he can only put down seven grand, he'll need to be buying.

[Bo Hanson]

Honestly, George, I like, bro, I want to make the deal happen with you, but I really can't be in the 13.

[Chris]

He should have $75,000.

[Bo Hanson]

Okay, it's going to be cosign 84 months. 84 months. If I 84 months. I need a payment to be lower than that though, bro. No, it's not going to work. There's no deal. We can't do it. It would be at 1244. I'm doing everything I can for you. We're going to go off of these numbers right here and see if we can get it done. Let me know, all right? If we can get it done, we'll get it done.

[Brian Preston]

There was not one negotiation around the really good the sales price of the car. All that he cared about was the payment. Hey, Give me the 12s, bro. Okay, let's go to 120 months, bro. Do not buy a car that way. When it's. When it comes time to buy a car, we want you. And you're going to say why this doesn't apply here. But when we want you to do 23 wants to put 20% down, which he was not doing. We only want you to finance it for three years or 36 months, which he was not doing. In your monthly payment cannot exceed 8% of your gross income. Which if he was trying to be in the 1200s, bro, I doubt that he was staying within 8% of his monthly gross income. And more than that, Brian, what should you do if you're going to go buy Mercedes?

[Chris]

Gl Merced Mercedes should be same as cash.

[Brian Preston]

Same as cash.

[Chris]

So he should have $75,000. The other thing it just broke my heart to think about, they're talking about 1200, 1400amonth car payments. Do you know somebody his age that was investing say 7, 800amonth and then had a reasonable 4 or 500amonth car payment? We're talking millions upon millions of dollars versus he's this car that's going to depreciate like a rock. It's going to cost a fortune to service. When he has the opportunity of being a billionaire of time that he could leverage and turn his dream into something pretty amazing instead, he's just going to look cool for a small period of time.

[Brian Preston]

He ought to go to moneyguy.com resources and check out our car buying checklist, our car buying calculator, our car buying affordability guide, so that way he will know how much car he can afford versus how much car he should not be buying. Brian I love that we get to do these reacts. I love that we get to see what people are putting out there on the Internet. We want you to be careful, we want you to be informed. We want you to make wise financial decisions. Building towards financial independence is incredibly simple, but it's not always easy. You have to make sure you're careful of who you let in your ear so you don't fall into one of the traps these people are laying.

[Chris]

That last video, being rich is so much better than looking rich. So just take that to heart. You don't have to fake it until you make it. You can actually we have the financial order of operations so you can live your best financial life. I'm your Host, Brian Preston. Mr. Bo Hanson. Moneyguy team out the Money Guy show.

[Brian Preston]

Is hosted by Brian Preston and Bo Hanson. Brian and Bo are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the securities and Exchange Commission. In accordance and compliance with the securities laws and regulations, Abound Wealth Management does not render or offer to render personalized investment or tax advice through the Money Guy Show. The information provided is for informational purposes only, may not be suitable for all investors and does not constitute financial tax, investment or legal advice. All investments involve a degree of risk, including the risk of loss.