Podcast Summary: Money Guy Show – The Truth About Building Wealth in Your 20s

Hosts: Brian Preston & Bo Hanson
Date: November 28, 2025

Episode Overview

This episode of the Money Guy Show is dedicated to young adults navigating the often overwhelming, sometimes intimidating world of personal finance in their 20s. Brian and Bo break down the practical steps, key mindsets, and critical financial principles young people need to start building meaningful wealth early. They provide reassurance, clarity, and actionable advice on everything from debt management to investing, demystifying what many fear is a confusing path and showing how small, disciplined actions today can lead to substantial rewards in the future.

Key Discussion Points & Insights

It's Normal to Feel Behind (01:23)

• Many in their 20s feel “behind” financially, but this is a universal stage at the beginning of adult life.
• Brian: "Right now we want you to know… it is normal to feel behind right now at this stage."
• Bo: "That fear… that you have so much ahead of you is also the perfect canvas for creating something magical over the long term."

The Reality of Starting with a Negative Net Worth (02:04)

• Nearly half of Gen Z (41%) have a negative net worth—mostly due to student loans and early debt.
• Hosts emphasize that you are not alone if you’re in this position and encourage listeners to avoid shame.

The Financial Order of Operations (03:02)

• Bo and Brian’s signature framework for making the most of every dollar.
• Treat it as an instruction manual for your financial journey: “what to do with your next dollar.”
• Avoiding "the consumption trap": prioritize building, not just spending.

Avoiding and Managing High-Interest Debt (03:45)

• Consumer debt, especially credit cards, can erode wealth-building efforts through punitive interest rates (often above 20%).
• Compound interest can work for or against you—a $5,000 credit card balance at 20% is $1,000 lost annually.
• Brian: "Figure out what in my life counts as high interest debt. It's so important we actually have it as step three..."

Student Loans & Car Loans Guidelines (05:52)

• Student loans under 6% interest: Prioritize investing; over 6%, consider focusing on quicker repayment.
• Car loans: Ideally pay cash, but hosts acknowledge many need to borrow to get to work—lay out “23/8” rule:
  • 23/8 Rule:
    • 20% down
    • Finance no more than 3 years
    • Total loan amount should not exceed 8% of gross income
• Bo: "Cars depreciate, they are napalm for your financial life… but sometimes you need to use debt to jumpstart your future income."

Your Secret Superpower: Time (07:40)

• "You are a billionaire of time." The earlier you start, the more your money can multiply via compounding.
• Small, repeated actions in your 20s have exponentially greater impact than similar actions taken later.
• Brian: "A $1 for a 20 year old can turn into $88 by retirement; wait until 30, it’s only $23."

The Latte Effect and Saving for a Million (09:11)

• For a 20-year-old, saving just $95/month can grow to $1 million by retirement; at 40, it's $1,052/month.
• Small daily choices (like skipping a fancy coffee) make a huge difference thanks to compounding.

Progress Over Perfection: Increase Savings Over Time (12:01)

• Start somewhere—even if it's a low number—and strive to incrementally increase contributions, particularly after each raise.
• Case Study: "Static Sam" saves $100/mo forever ($600k at retirement); "Manny the Mutant" increases savings 10% yearly ($2.3 million).
• Bo: "We want you to start a behavior and then let that behavior get better and better over time."

Debunking “High Risk Means High Reward” (13:14)

• The world tells young people riskier investments mean higher returns—often not true.
• Speculation (stocks, crypto, NFTs, sports betting) is not the same as investing.
• Brian: "High risk does not mean higher reward. It means you need to be compensated for risk, not guaranteed a better return."

Keep Investing Simple – Always Be Buying (15:25)

• Set it and forget it: automate investing, use dollar cost averaging, and stick to index funds.
• Time in the market beats trying to time the market—missing just a few of the best days slashes returns massively.
• Brian: "If you just left $10,000 in the S&P 500 from 1988 to 2023, it'd be $418k. Miss the best 5 days, it drops to $264k…"

Savings Rate > Rate of Return (20:59)

• Early in your journey, how much you save matters far more than your investment returns.
• Case Study: “Sal the Savant” saves 10%, gets 25% returns; “Manny the Mutant” saves 25%, gets 10% returns. It takes Sal a decade of unrealistic returns to catch up.
• Bo: "Your savings rate, especially when you're young, is more important than even rate of return."

Enjoy the Journey – Don’t Defer All Joy (24:04)

• You can and should have meaningful experiences in your 20s, but be intentional and stay within your means.
• Bedazzle your basic life—memorable moments don’t have to be luxurious or expensive.
• Bo: "Focus on what matters… my trip to Italy when I was broke still had gondolas and Rome… just a lower price tag."
• Brian: “A coffee with my wife in a real cup… is more valuable now than a luxury vacation.”

Mindset for 20-Somethings: Begin with the End in Mind (27:47)

• Don’t get lost chasing the “hot dot” or latest trend.
• Adopting simple, repeatable, disciplined behaviors will bring the largest rewards.

Implementing an Investment Plan – Make it Easy (28:56)

• Saving rate is the most important thing—don’t overthink investment choices.
• Target-date funds and index funds are powerful, low-maintenance options—just pick a date and let the fund manage asset allocation.
• Bo: "If you can tell me when you need the money and how much you can save—index target retirement funds do the rest."

The Impact of Your Twenties on Your Life (32:11)

• Your 20s set up your 30s, and so on—choices made now make later decades easier and more successful.
• It’s about simple, replicable habits, not perfection or complexity.

Notable Quotes & Memorable Moments

• Bo Hanson (01:45): “That fear… that you have so much ahead of you is also the perfect canvas for creating something magical over the long term.”
• Brian Preston (04:37): “Compound interest can be the 8th wonder of the world, but it can aggressively work against you.”
• Bo Hanson (07:40): “You are a billionaire of time.”
• Brian Preston (09:11): “A $1 for a 20 year old can turn into $88 by retirement; wait until 30, it’s only $23.”
• Bo Hanson (12:01): “We want you to start a behavior and then let that behavior get better and better over time.”
• Brian Preston (13:14): “High risk does not mean higher reward.”
• Bo Hanson (24:56): “What is acceptable to you is the broadest it's going to be in your life. So to try to use social media to tell you you've got to do luxury… it's a falsehood.”
• Bo Hanson (32:11): "You just kind of need to do some basics and you'll be rewarded immensely just from that action."

Key Timestamps

• 01:23 – Reassuring those feeling behind financially
• 02:04 – Gen Z’s negative net worth statistics
• 03:02 – Introduction to Financial Order of Operations
• 03:45 – Dangers of high-interest consumer debt
• 05:52 – Managing student and car loans; the 23/8 rule
• 07:40 – Emphasizing the value of time for young investors
• 09:11 – Wealth multipliers: $95 a month to a million
• 12:01 – The importance of increasing savings rate
• 13:14 – Risk vs. reward myths
• 15:25 – Keep investing simple; automate and always be buying
• 16:14 – Impact of missing market’s best days
• 20:59 – Savings rate vs. chasing high returns
• 24:04 – Balancing saving with memorable experiences
• 27:47 – The right mindset for 20-somethings
• 28:56 – Index & target-date funds as low-overhead investing solutions
• 32:11 – Why your 20s matter for a lifetime
• 33:15 – Next actions and free resources

Actionable Takeaways

• Don’t stress about being behind—most people in their 20s start from scratch or even negative.
• Avoid consumer debt and be strategic with any “good” debt (student loans, cars).
• Automate investments, focus on index funds, and set your savings rate as high as possible.
• Let your investing behavior mature with your income—don’t stay static!
• Resist the urge for risky, speculative investments—simplicity and consistency win.
• Enjoy your 20s intentionally and within your means—memories don’t have to be expensive.
• Use target retirement funds if complexity overwhelms you.
• Download free resources at moneyguy.com/resources to measure and motivate your progress.

Final Thoughts from the Hosts

• Bo Hanson (33:15): "Just a few behaviors that you can change… is going to set you up. It's not easy, but it is simple."
• Brian Preston (closing): “Don’t let someone tell you in your 20s that the system’s changed and it’s rigged against you… go conquer the world, because you got that billionaire of time component.”

This episode is a reassuring, practical masterclass on why your 20s are rich with opportunity, not obstacles. Master the basics, use your time wisely, and your future self will thank you.