Money Guy Show: "I Save, They Spend - What Do We Do?" Release Date: April 7, 2025 | Hosts: Brian Preston and Bo Hanson

Introduction

In this enlightening episode of the Money Guy Show, hosts Brian Preston and Bo Hanson delve into the complexities of managing differing saving and spending habits within relationships. Titled "I Save, They Spend - What Do We Do?", the episode addresses listener questions that explore the challenges and strategies for achieving financial harmony between partners with contrasting financial mindsets.

Listener Questions and Discussions

1. Navigating Different Spending Habits in a Relationship

Listener: Zachary K.
Timestamp: [00:51]

Question: "I'm the saver and my wife is the spender. Do the money guys have a framework for money conversations with your spouse, especially when you are wired differently?"

Hosts' Response:

Brian Preston emphasizes the importance of fostering win-win situations to transform money conversations from confrontations into collaborative dialogues. He advises against blunt refusals to spending without context, as this approach often leads to conflicts.

Bo Hanson builds on this by highlighting the necessity of goal alignment. He shares personal experiences, explaining how he and his wife prioritize shared financial goals such as financial independence and creating memorable experiences over individual spending preferences. By conducting annual financial planning retreats, they review their net worth statements, assess past financial decisions, and set goals for the upcoming year, ensuring both partners feel heard and aligned.

Notable Quote:

"Every time we go about making a financial decision, we try to back into, okay, what's the why? Why are we doing this? What are the goals we're working towards?" — Bo Hanson [01:58]

2. Applying the 238 Rule to Electric Vehicle Purchases

Listener: Dan G.
Timestamp: [08:11]

Question: "I'm planning on buying a used car and want to follow the 238 rule, which is great. However, I also want to get an electric vehicle. Can I bake the cost savings from an electric vehicle into the 238 rule?"

Hosts' Response:

Bo Hanson enthusiastically confirms that the 238 rule can indeed be applied to electric vehicle (EV) purchases. He outlines a clear framework:

• 20% Down Payment: Ensures initial equity in the vehicle.
• 36-Month Financing Term: Limits the loan duration to reduce interest accumulation.
• 8% of Gross Monthly Income: Caps the total cost to maintain financial stability.

Brian Preston adds practicality by discussing the real-world considerations of EV ownership, such as the convenience of home charging versus the challenges of long road trips.

Notable Quote:

"When you go buy that EV, if you put 20% down, you do not finance it for any more than 36 months, and it does not exceed 8% of your monthly gross income." — Bo Hanson [10:08]

3. Managing Complex Financial Situations with the Financial Order of Operations (FOO)

Listener: Gdash
Timestamp: [15:20]

Question: "How should one approach the FOO if they are new to it? Apply only new money to the FOO steps and then or redeploy assets from somewhere else. For example, I didn't have emergency savings and I bought a new car on a 60-month term. But I have a taxable brokerage. What do you think?"

Hosts' Response:

Bo Hanson introduces the Financial Order of Operations (FOO) as a strategic approach to manage finances effectively. He advises assessing one's current financial standing, identifying gaps such as lacking an emergency fund, and restructuring resources to address these vulnerabilities before advancing to other financial goals.

Brian Preston reinforces the importance of integrating FOO with practical tools available on moneyguy.com. He emphasizes the need for financial triage, evaluating the risk associated with significant financial decisions, and ensuring that new commitments do not destabilize one's overall financial health.

Notable Quote:

"The financial order of operations can be an amazing initial assessment... how can I restructure, redesign, reallocate my resources to cover those risks so that I can continue moving along the FOO." — Bo Hanson [15:47]

4. Investing an Inheritance for a Minor

Listener: David T.
Timestamp: [25:50]

Question: "My 7-year-old niece just inherited $350k from her grandfather's estate. How should she invest it for her future?"

Hosts' Response:

Bo Hanson outlines the necessity of establishing a trust fund or similar legal structures to manage the inheritance for a minor. He suggests consulting state-specific regulations regarding minors inheriting assets and emphasizes defining the financial goals for the funds, such as education or future investments.

Brian Preston complements this by advocating for a long-term investment strategy that aligns with the child's future milestones. He highlights the importance of financial governance to prevent premature or imprudent use of the funds, ensuring they contribute to lasting financial stability and legacy.

Notable Quote:

"You need to have some governance to ensure that you don't squander the legacy and the planning opportunity." — Brian Preston [25:56]

5. Assumable Mortgages and 238 Rule Application

Listener: Zachary B.
Timestamp: [39:10]

Question: "My wife and I are about to close on an assumable mortgage APR 3.57%. Right, great rate. But we'll clear out our cash to buy out the equity. Should we take a 401k loan to keep an emergency fund?"

Hosts' Response:

Bo Hanson explains the concept of assumable mortgages and their benefits, such as securing a lower interest rate compared to current market rates. He advises evaluating various funding options for purchasing the equity, emphasizing the importance of minimizing financial risk by adhering to the 238 rule principles.

Brian Preston elaborates on conducting a risk assessment before committing to such financial decisions. He recommends listing all available options, ranking them by risk and accessibility, and using scenario planning to anticipate potential financial strains.

Notable Quote:

"You have to write down all of your options and rank them by risk of ways you can get to this money." — Brian Preston [41:18]

6. Handling the Absence of Employer-Sponsored Retirement Plans

Listener: Chance
Timestamp: [46:19]

Question: "My new job has no retirement plans to contribute to. Are there any good recommendations as to avenues for investments? Anything I can do to get a percentage match?"

Hosts' Response:

Bo Hanson acknowledges the challenge of lacking an employer-sponsored retirement plan and suggests alternative investment vehicles:

• Roth IRA: Offers tax-free growth and withdrawals.
• Health Savings Account (HSA): Provides tax advantages for medical expenses and can double as a retirement savings tool.
• Taxable Brokerage Accounts: For additional investment opportunities without the constraints of retirement accounts.

He also encourages listeners to advocate for the introduction of retirement plans within their organizations, presenting potential benefits to employers.

Brian Preston reinforces that while employer matches are advantageous, they are not the sole pathway to financial growth. He emphasizes the importance of consistent investing and utilizing available tools to build wealth independently.

Notable Quote:

"There are plenty of opportunities for you to build wealth, maximize the financial order of operations. It just means after you get your highest deductible covered, you go skip two because there's nothing there for you." — Brian Preston [47:48]

Key Insights and Takeaways

1. Effective Communication: Establishing open, positive dialogues about finances can bridge the gap between differing spending habits in relationships. Regular financial meetings foster transparency and mutual goal setting.

2. Financial Frameworks: Adhering to structured financial rules like the 238 rule ensures disciplined purchasing decisions, whether it’s for vehicles or mortgages, thereby maintaining financial health.

3. Adaptive Strategies: Utilizing the Financial Order of Operations (FOO) allows individuals to assess and adjust their financial priorities dynamically, addressing immediate risks before pursuing long-term goals.

4. Protecting Inheritance: For minors inheriting substantial assets, setting up legal structures and focusing on long-term, goal-oriented investment strategies secures their financial future.

5. Navigating Financial Gaps: In the absence of employer-sponsored retirement plans, leveraging personal investment vehicles such as Roth IRAs and HSAs can effectively substitute traditional retirement savings methods.

6. Proactive Financial Planning: Engaging in scenario planning and risk assessments prior to major financial commitments helps in mitigating potential setbacks and ensures sustained financial stability.

Conclusion

"I Save, They Spend - What Do We Do?" offers a comprehensive exploration of managing diverse financial behaviors within personal relationships. Through real-life listener questions and expert advice, Brian Preston and Bo Hanson provide actionable strategies to achieve financial alignment, discipline, and security. Whether navigating shared expenses, adopting financial frameworks, or planning for future inheritances, this episode equips listeners with the knowledge to make informed financial decisions and foster harmonious financial partnerships.

For more insights and resources, visit moneyguy.com or explore their Financial Order of Operations course at learn.moneyguy.com.