← Money Guy Show
Money Guy Show
Financial Advisors React to RIDICULOUS Money Clips
00:16:59
Money Guy Reacts | RIDICULOUS Clips
Loading summary
Transcript86 lines
- [00:00]
A
Predator. Badlands now streaming on Hulu and Hulu on Disney. Here you're not the predator, you're the prey. Prey, prey, prey, prey. Critics are saying it's epic, stunning, and breathtaking. Many have come here.
- [00:23]
B
None have survived.
- [00:25]
A
Badlands now streaming on Hulu and Hulu on Disney. Rated PG 13. So good, so good, so good.
- [00:33]
C
Spring styles are at Nordstrom rack stores now and they're up to 60% off. Stock up and save on Rag and Bone, Madewell, Vince, All Saints, and more of your favorites.
- [00:43]
A
How did I not know rack has Adidas?
- [00:44]
D
Why do we rack for the hottest deals? There's so many good brands.
- [00:48]
C
Join the Norty club to unlock exclusive discounts. Shop new arrivals first and more. Plus, buy online and pick up at your favorite rack store for free. Great brands, great prices. That's why you rack.
- [01:00]
B
Lookity, lookity here. Content crew has been busy with some ridiculous financial content. Everyone.
- [01:06]
A
I am so excited to see what the Internet has in store for us today.
- [01:11]
E
Today I'm show y' all how to turn $60 into a thousand dollars. The first thing you want to do is go to your nearest gas station and pump some gas.
- [01:17]
B
You can go to your job. Go to your job, I bet.
- [01:19]
E
And all you gotta do is wait for your truck, whatever vehicle you're driving, to fill up with gas.
- [01:23]
B
Okay.
- [01:23]
E
While you wait for your vehicle to finish pumping, you can clean your windshield wipers. Oh, look at this. It wasn't even $60. It's 58, 53. And now that you have a full tank, you can drive yourself to work in two weeks and make a thousand dollars.
- [01:34]
B
So you're right. You're not supposed to ruin the plan.
- [01:36]
A
You ruined the plan.
- [01:37]
F
Whatever.
- [01:37]
B
I think I might have given him the idea for that. How often do I say that the best way, sometimes you have to even do 238 because your first wealth builder is going to be your job.
- [01:48]
A
That's right.
- [01:48]
B
He might be a financial mutant that saw our content and actually said, you know what, Let me make something out of this.
- [01:54]
A
I love that. It's not get rich quick. It's not get rich overnight. It's hey, I need to go recog how do I have a shovel? Create an income, have resources, defer a little bit of those resources through discipline, through saving, through building for the future and build for my future self. I love it.
- [02:11]
B
Well done.
- [02:12]
G
Everything that I wanted to see, I saw this week. And again, the market is so distracted with so many things. I'm not. I'm not distracted, guys. I'm spending about 15 to 20% on this meme stock stuff because it's hot and it's early. Early. And the one thing that we learned from 21, by the way, I forgot to say this. He's like the most important thing when trading meme stocks. When trading any of this stuff, the most important thing is being a little bit early. The last time we did this, I was fortunate enough to aggressively get early on all these trades. Sometimes I exited early on others, like GameStop. Do you remember this, Dave? When I posted my exit on GameStop on Twitter and I don't know what happened, maybe there was some random algorithm attached to my Twitter. It just triggered some type of domino effect to bigger money. I. I don't know. But that was maybe the luckiest trade I've ever made.
- [03:06]
B
It's just. There's nothing that's. It's gone. Yes. Hey, you want to get rich? Let me tell you a system that I have that's gonna blow your mind. Get in, er, buy low, sell high. You'll dominate the world.
- [03:27]
A
Yeah, that's great if you can do it and you can replicate it and you can do it over and over again. But think about how many meme coins meme stocks meme fill in the blanks we've seen over the past five, six, seven years and how many have been the one that have ones that have actually created wealth and how many have fizzled into nothing. We think there's a better mousetrap on a better way to build wealth and is not that.
- [03:50]
H
Here's why. This Rolex was one of the dumbest yet smartest financial decisions I've ever made. You see, when I bought this watch back in 2015, at the time it cost me £5,400. Why it was one of the dumbest decisions at that time was that I only bought this watch with the intention of looking cool in front of people that ended up not giving a. The reason why it became one of the best decisions I've ever made is that this Rolex right here, which is a Submariner, is actually one of the most in demand Rolexes on the market. This means that going off current market value, I could sell this exact watch right here for around £12,000, which is more than double the original price I paid for it over eight years ago. And an investment like this completely crushes any kind of returns that I've ever had on any kind of stock investment or property.
- [04:34]
A
What's the takeaway? What's the learning opportunity here? I should go out and buy luxury Goods. I should go spend a lot on watches. Just because a poor financial decision turned out okay for you does not mean that it was a wise financial decision to replicate. It means you got lucky and you ended up at the right place, the right time with the right accident and the right mistake and it didn't burn you.
- [04:58]
B
Just because the market value is listed at that doesn't mean that's actually what your net proceeds would be. There's a lot of friction or transaction costs to actually turn that Rolex into liquid capital for you. If you want proof of this, take it down to a pawn shop, see what they'll give it.
- [05:14]
A
So Brian, here's what I'm trying to figure out. He started off by talking about how bad this investment was, but then he
- [05:19]
B
went to, he rubs our nose in how much money.
- [05:21]
A
And so here's what's not clear to me. Does he think that this was a wise investment and it was a decision that he would repeat? Or does he recognize, oh wow, I made a foolish decision that just happened not to burn me? Because what I worry is, okay, I made a bad mistake, but it had a good outcome. That means I'm going to go make another bad mistake and hope for another good outcome. Oftentimes in our financial life it does not work that way.
- [05:46]
F
The average American makes what, 58,000 a year?
- [05:48]
G
Average worldwide is like 35,000 a year.
- [05:50]
I
All right, 50, right?
- [05:53]
F
Someone working a job, 50 grand a year. If they wanted to start a business, how long would it take them to save up a quarter of a million dollars? With that 50 grand, they'd have to
- [06:01]
G
pay taxes on it.
- [06:01]
F
Oh yeah, taxes.
- [06:02]
B
Living.
- [06:03]
F
Yeah, living in 10 to 15 years. 10, 15 years, would you say about maybe 8 to 10 years? Now ask me how long it would take me to go get a quarter million dollars from the bank. Probably a week, 30 minutes.
- [06:18]
B
Is that all?
- [06:19]
F
So once you understand how money flows and how debt actually works in a debt operated country, which is America, you learn that debt saves you time. And here, here's, here's the craziest thing about it all. Let's say after that 10 to 15 years, you save up that quarter million dollars and you invest in this business and it fails. You want, can you get that money back that you invested?
- [06:36]
B
No.
- [06:36]
F
What if you fail? When it was the bank, you filed bankruptcy, you start, oh, there you go, bankruptcy, file bankruptcy, you're not out of no money.
- [06:44]
B
Yeah, there's a lot of small out there that are based upon what work you do. Think about your attorneys, your accountants, Your doctors, they're all service based businesses. Much lower. It's more about who you are and the skills you have and the service you can offer than building up a big capital nut to go out there and start a company. You really only need like $250,000 if you're going to be doing manufacturing or something. And that's a much different game than what I think when, when, when we're saying the startup of a small business.
- [07:15]
A
Man, it's way more easier to go out and borrow money. Is it to save up? Well, of course. And in some instances that's necessary. Like when it comes to buying a home. Yeah. Instead of saving up cash to pay for a home, it's okay if you save for a down payment. You go out and borrow to be able to do that. But that's a very different thing than what he's talking about. He's using the same logic that man, I could go save up to go buy something at a store or I could just swipe my credit card. You know how much faster I could swipe my credit card. Just because you can borrow, just because debt's available does not mean that debt is always the right solution for, or the purchase that you are making. One, that's not the way that consumption works. And two, that's not the way the business works.
- [07:53]
B
Easier is not necessarily better.
- [07:55]
A
What's the most legit get rich quick scheme in history?
- [07:58]
H
Simple.
- [07:59]
J
Figure out how to make the underground a year and then move to Brazil or Thailand. Now you're a millionaire. It's not how much you make is how much buying power you have.
- [08:09]
A
It's not how much you make is how much you spend. Well, sure, if you want to live in Brazil or if you want to live in Argentina, you want to live in one of those places. A lot of us don't necessarily want to live in those places. We like the place that we live and like where we have relationships where we establish roots. Yeah, there are certainly lower cost of living places, but that's no different than saying, hey, you ought to just go find the absolute lowest cost of living place in the middle of Arkansas and go live there. How far your money goes only one part of the life equation that we get to live.
- [08:38]
B
Bo, can you go home and record the conversation when you, you go home and tell your wife and children that you're moving?
- [08:44]
A
We're Brazil.
- [08:44]
B
Brazil or Thailand.
- [08:45]
A
Let's go.
- [08:46]
B
Tell me how that goes.
- [08:47]
A
Yeah, it's not going to go with
- [08:48]
B
kids and schools and, and all the churches and everything else that you have, you know, roots in the ground with.
- [08:56]
A
Brian do you remember when we decided to go all in on our YouTube channel, but we just didn't know if all the hard work was actually going to pay off?
- [09:03]
B
Oh yeah, it was a little scary at first because you have all the what ifs? What if nobody watches our videos? What if this doesn't work? What if we're just talking to ourselves?
- [09:12]
A
But thank thankfully we took the leap and honestly, it's been one of the best decisions we've ever made.
- [09:17]
B
And if you're thinking about starting a business or launching a side hustle, let me tell you, having the right tools makes all the difference. And that's where Shopify comes in.
- [09:26]
A
Shopify powers 10% of all e commerce in the US from startups to even popular brands like Allbirds and Untuck It.
- [09:34]
B
And they make it simple. You can build a professional online store with ready to use templates plus AI tools that help write product descriptions and even improve your photos.
- [09:43]
A
It's basically like having a market marketing team in your pocket. Email campaigns, social posts, all designed to help you find your customers.
- [09:50]
B
And with Shopify, you can handle everything from inventory to payments to analytics. So you don't need to manage a bunch of tools on different platforms. Everything is all in one place, making your life easier and your business runs smoother.
- [10:04]
A
Look, you don't want to miss out on what's next because you're so worried about a bunch of what ifs.
- [10:09]
B
It's time to turn those what ifs into With Shopify today, sign up for your $1 per month trial shopify.com moneyguy
- [10:19]
A
go to shopify.com moneyguy that's shopify.com moneyguy
- [10:27]
D
this episode is brought to you by Indeed. Stop waiting around for the perfect candidate. Instead, use Indeed sponsored Jobs to find the right people with the right skills fast. It's a simple way to make sure your listing is the first candidate. C According to Indeed data, Sponsored jobs have four times more applicants than non sponsored jobs. So go build your dream team today with Indeed. Get a $75 sponsored job credit at Indeed.com podcast. Terms and conditions apply.
- [10:55]
I
Bought this $52,000 Toyota Sienna less than a year ago. Today, it's fully paid off. But here's the catch. We didn't use any of our salaries to pay for it. We have a baby on the way, so we wanted to eliminate some of our monthly expenses. Originally, we were going to pay cash, but if I wrote a check for $52,000 that money is gone forever. So instead we did something that goes against all financial advice. We financed the whole thing instead. But we didn't buy the van until we had enough assets to cover the payments for the van. For two years, I invested in alternative investments like small businesses and real estate. By the time we signed for the van, those investments were paying us double the return than the interest rate on the loan. Then we used that passive income to aggressively pay down the car note. So the investments essentially paid for our new van. If I had paid cash up front, I'd have a paid off van and then no cash in the bank. But because I did it this way, I have a paid off van and I still have the assets bringing in monthly income. They don't buy luxuries with your labor. Plan ahead and invest in assets and let them pay for your liabilities.
- [11:54]
B
I almost felt like he forced the content creation on. This is because he was like, hey, bought, bought my wife this minivan. How can we make this somewhat deductible? So maybe I can deduct a portion of this. Oh, I'll throw it in this video and say, hey, I set up all this, you know, side hustle businesses over here. And because I didn't use the $52,000, it all paid it back. It felt kind of clunky to me. It didn't make sense.
- [12:14]
A
Here's all he said. If I can save dollars and invest dollars and create passive income, the passive income that I can create can pay for my living expenses. That's all he said. Well, that is the definition of working towards financial independence. I want to put my money to work and that money's going to work harder than I can. And the money that money earns can then be used to pay for my living expenses. That is a true statement. Now, what he did that was a little more aggressive is rather than waiting till he had a big pocket of a big bucket of assets, and in financial independence, he said, I'm going to go out and lever. I'm going to borrow all the money in this van. I'm going to pay an interest rate on that. But the money I'm going to create on my passive investment is going to be greater and I'm going to play this arbitrage game. And in this situation, for him, that worked. But that works until it doesn't work. A better method is build up a healthy, large base of assets where then you're not just counting on those passive investments to pay for a car payment or a note or a loan. You can actually count on your passive investments, your portfolio to pay for your entire life.
- [13:14]
B
But the thing is that video did nothing for me. Like what do I do on my next dollar based upon if I took his guidance, I mean, Roth, IRA or what's going to be pressure washing driveways? What's, what's this thing that's going to actually create the money to pay off the minivan? I didn't find any actionable advice out of that.
- [13:32]
J
We hit upon the idea of co ownership, which is what Picasso allowed to buy a home in eighths. 1-82838 and then you co own it with other people. It's like carpooling time. Share your house people into a single home that's higher end. And so it alleviates demand in the mid tier by aggregating eight people into the upper price tier. Most people can't afford a second home and many can hardly afford a first home. It's very expensive to own a second home because of underutilization. And most second homes are only used six weeks a year. Why is six weeks relevant? Well, that's one eighth of a home. I firmly believe that Pacaso is good for communities, that the problem is empty second homes. Those homes are utilized. Local services and restaurants and bars and wineries, you know, other services are used because the homes are highly utilized. Our typical home's whole home value is around 4 to 8 million. So you divide that by 8 to get your unit value. So 500,000 to a million dollars is what most people are paying for their Pacaso or one eighth of the home.
- [14:22]
B
Yeah, but can we all just say timeshare? He just came up with a timeshare concept without timeshare. But for your luxury property.
- [14:31]
A
Hey, let me ask you a question, Brian. Do you really think that the problem in our real estate market right now is a bunch of empty second homes? Is that the problem is that, hey, for all of you young folks out there in between the age of 20 and 40 that are trying to get in your first home, I think the real, the real estate problem we have right now is empty second homes. And we need to work to figure out how we solve that problem.
- [14:53]
B
Well, when I'm trying to solve housing issues, it's not necessarily even for any secondary home.
- [14:58]
K
You shouldn't need to pay them more. All right? There should be a different way to get employees to want to stay here. That kind of investment isn't necessary. No, we should invest. Excuse me. We will give the people a retirement plan, one where we match the investments yeah, okay. Because we could definitely afford matching. Not all at once. Go on. If they leave after one year, they lose everything. We match nothing. Year two in most of it, you're four. Perhaps enough just to make them hesitate. We don't forbid escape. You simply attach a price to it. Okay, and how long until their 401k plan will fully be vested? I say six, seven years. Actually, no, make it like three, four. To preserve the common section. After every bad day that they want to leave, it becomes a calculation. Because leaving will feel like theft from themselves. Punishment disguised as a benefit.
- [15:54]
A
I don't think this is wrong. One of the things that I tell my people is, hey, I want you guys to be here for a long time and I'm going to give you more money to stay here longer. I'm going to give you this much money if you stay here for six years. I'm going to give you this much money if you stay here for this many years. It aligns the incentives. What the employee naturally wants is more money in their retirement account. And what the employer naturally wants is long tenured employees. I don't think that's a bad thing. I think it mutually incentivizes behaviors to align expectations.
- [16:26]
B
Well, and if we. We have actually went back to the room where this was all invented. There was this whole thing where we had defined benefit pension plans, and then they came up with like, hey, is there a way that we can do defined contribution where we're not actually on the hook for what happens 30, 40 years down the road? There's what if you want to get the cameras inside the room? Be a fly on the wall. It was much nerdier than that, Brett.
- [16:52]
A
I love that the Internet is always rife with tons of financial information, but not all of it's great. But you know a great place where you can go get a. What are you talking about?
- [17:01]
B
I'm headed out right after this to go pick up a new Rolex.
- [17:04]
A
Or that. Yep. Or you could go to moneyguy.com resources. Check out the plethora of free tools and deliverables we have out there, because we really do believe that there is a better way to do money. We believe that you can do money better with that.
- [17:18]
B
I'm your host, Brian, joined by Mr. Bo Money Guy out. Let me tell you a system that I have that's gonna blow your mind. Now hone in, lean in, because this is all you need to know.
- [17:31]
L
This episode is brought to you by Nespresso. Introducing Virtuo up, the latest in a long line of innovation from Nespresso. It's innovation you can touch, sense and taste in every single cup. With a three second start, easy open lever and dedicated brew over ice button, it's even easier to enjoy your coffee your way. Sip for yourself. Shop Virtuo up exclusively at nespresso.
- [17:55]
A
Com.