Podcast Summary: Money Guy Show – "The HIDDEN Costs of Moving"

Release Date: February 19, 2025

Hosts Brian Preston and Bo Hanson delve into the often-overlooked financial implications of relocating in this insightful episode of the Money Guy Show. Through listener questions, personal anecdotes, and expert advice, they uncover the myriad hidden costs that can accompany a big move, ensuring listeners are well-prepared to navigate their own transitions smoothly.

1. Introduction to Hidden Moving Costs

Brian opens the episode by highlighting the theme: the concealed financial burdens that come with moving. Bo expresses excitement about tackling such significant life decisions, emphasizing the importance of understanding all facets to make informed choices.

Bo (00:09): "Sometimes those life decisions have hidden costs or hidden things that we need to think about to make sure that we're doing it well."

2. Listener Question: Moving from Chicago to Colorado

Megan, the senior content developer, presents a question from Thomas S., who plans to relocate from Chicago to Colorado with his wife. They have secured employment and savings but seek advice on additional considerations.

a. Social and Logistical Challenges

Bo reflects on the personal challenges of moving away from established family networks, sharing his own experience of relocating from Georgia to Tennessee. He underscores the importance of anticipating the lack of immediate support systems in a new area.

Bo (02:50): "Things that I didn't think were going to be an issue all of a sudden become an issue if I need help moving furniture, moving in."

b. Financial Implications of Housing

Brian discusses the significant variation in housing costs between regions, using his move from Georgia to Tennessee as an example where his housing budget unexpectedly increased by 40%.

Brian (04:07): "My budget increased by 40% because the housing was a lot more expensive here in the Nashville area than it was south Atlanta."

c. Moving Services and Costs

The hosts explore the costs associated with hiring professional movers, especially for interstate moves. Brian shares a cost-saving strategy where he combined professional loading and unloading with personally driving a U-Haul.

Brian (06:35): "I paid professional movers to load up the U Haul and then I drove my... hired professional movers to help me unload the U Haul. So that's a hack because they're not allowed to drive across state lines unless they're licensed."

d. Additional Expenses: Furniture and Decorating

Brian warns against the Diderot effect, where acquiring new items during a move leads to increased spending. He advises meticulous planning to avoid unnecessary costs.

Brian (05:30): "Furniture and decorating... measure twice, cut once and plan for it."

e. Logistical Considerations Beyond Finances

Bo brings up practical aspects such as finding new healthcare providers and mechanics, highlighting the broader scope of moving beyond just financial planning.

Bo (07:28): "What doctors are you going to see? What kind of doctors do you need to see?"

3. Personal Anecdotes and Community Insights

The hosts share personal stories about moving and the ripple effects on their families. Bo mentions the joy and challenges of having grandparents move closer, strengthening familial bonds.

Bo (08:22): "It's not all bad. There's a lot of pros and it makes the time when you are together much sweeter."

4. Upcoming Projects and Community Engagement

Brian and Bo announce the upcoming premiere of their passion project, "Making a Millionaire", set to launch on February 3rd. They encourage listeners to engage with the content and share feedback.

Bo (13:16): "It's the world premiere of Making a Millionaire... Monday, February 3rd at 8am Central."

5. Listener Question: Balancing Student Loans and Savings

Megan presents a question from Bob B., who, along with his wife, grapples with managing $74,000 in student loans while aiming to build an emergency fund and invest in a Roth IRA.

a. Financial Order of Operations

Bo introduces the concept of a financial order of operations, a nine-step process designed to prioritize financial decisions effectively.

Bo (09:00): "We came up with the financial order of operations. Brian, you hold the thing up."

b. Assessing Debt Interests

The discussion emphasizes determining whether student loans are high or low interest to decide their priority in the financial hierarchy.

Bo (09:16): "Where do you classify the student loans—high interest debt or low interest debt?"

c. Layering Financial Goals

Bo advises layering financial goals based on personal priorities, suggesting that one must align financial actions with their ultimate objectives.

Bo (10:27): "He has to layer his goals that way before he can decide exactly how to tackle them."

Brian complements by recommending tools like the Know Your Number course to assess financial standing and make informed decisions.

Brian (11:00): "Use the know your number in conjunction with the financial order of operations."

6. Listener Question: Investing vs. Paying Down Mortgage

Megan shares a question from Colton J., a young couple deciding whether to pay down a 7% mortgage or invest, given their plans to upgrade their home in four to seven years.

a. Evaluating Mortgage Debt

Bo congratulates the couple on their financial discipline and discusses the nature of mortgage debt, distinguishing it from other high-interest debts.

Bo (15:16): "At 25 and 23 years old, have I gone to moneyguy.com resources and checked out the wealth multiplier."

b. Long-Term Financial Planning

Brian discusses mortgage refinancing opportunities and the benefits of adhering to the financial order of operations over solely focusing on debt repayment.

Brian (17:53): "Don't treat that 7% as itself necessarily a step three... consider refinancing opportunities."

c. Future Housing Goals

Bo encourages forward-thinking about future housing needs, such as saving for a down payment on a new home, to mitigate financial risks.

Bo (18:55): "Decisions you're going to begin making today so that you're prepared for that 20% payment seven years in the future."

7. Listener Question: Sell or Rent Out Home When Relocating

Megan introduces a question from John M., contemplating whether to sell his home or rent it out due to a new job requiring relocation.

a. Behavioral Considerations

Bo emphasizes the importance of assessing personal willingness to handle the responsibilities of being a landlord, beyond the mathematical aspects.

Bo (27:04): "Do I want to be the person who's having to source your tenants? Do you want to have to pay a management company?"

b. Financial Calculations and Practical Challenges

Brian shares his experience with renting out a property, highlighting unforeseen maintenance costs and the complexities of managing rentals from a distance.

Brian (29:52): "The house just wouldn't sell... so we rented it out to capture paying the mortgage."

c. Assessing Financial Readiness

Both hosts advise ensuring that pursuing a rental doesn't jeopardize financial stability, urging adherence to the financial order of operations to avoid taking on excessive debt.

Bo (28:25): "Ensure that you are making wise financial decisions based on where you are in your financial order of operations."

8. Closing Remarks and Community Engagement

Towards the end, the hosts share light-hearted moments and personal insights, discussing the longevity of their podcast and the unexpected journey from hobby to financial advisory roles. They encourage listeners to subscribe and engage with upcoming content.

Bo (21:22): "Would you have thought back then 20 years, 19 years in the future, this is where you'd be sitting doing this. How wild is that?"

Key Takeaways

• Comprehensive Planning: Moving involves more than just securing a new home; it requires detailed financial and logistical planning.

• Assess Hidden Costs: Be aware of unseen expenses such as increased housing costs, moving services, and setting up new utilities or services.

• Behavioral Readiness: Decide whether the responsibilities of renting out a property align with your personal preferences and lifestyle.

• Financial Hierarchy: Utilize tools and structured approaches like the financial order of operations to prioritize financial decisions effectively.

• Future-Proofing: Anticipate future financial needs, such as saving for a down payment on an upgrade home, to ensure long-term stability.

By addressing these aspects, Brian and Bo empower listeners to approach moves with greater confidence and financial prudence, ultimately fostering a more secure and fulfilled life.

Note: The Money Guy Show is hosted by Brian Preston and Bo Hanson, partners with Abound Wealth Management. The information provided is for informational purposes only and does not constitute financial, tax, investment, or legal advice.