Podcast Summary: The Ultimate Money Rules – Simple Steps to Build Wealth Fast
Money Guy Show | Hosts: Brian Preston & Bo Hanson
Release Date: November 14, 2025
Overview
In this episode, Brian Preston and Bo Hanson distill their decades of financial wisdom into a single, powerhouse session brimming with simple, actionable money rules. Their mission: to help listeners build wealth faster by demystifying financial decisions and establishing easy-to-follow frameworks for student loans, car and house buying, debt prioritization, investment strategy, and more. With the end goal of financial independence and true wealth-building, the Money Guys equip “financial mutants” with the confidence to let their assets work for them.
Key Discussion Points & Insights
1. Student Loan Debt: The First-Year Financing Rule
[02:13 – 03:45]
- Rule: Don’t take on more student loan debt than your anticipated first-year salary.
- “Begin with the end in mind…we don’t want you to take on more student loan debt than your first year of anticipated income will be.” — Brian Preston [02:13]
- Stats & Pitfalls:
- 44% of Gen Z holds student loans; 24% of adults with loans think they’ll never pay them off.
- The burden of excessive debt can derail financial progress early.
2. Car Buying: 20/3/8 Rule
[04:04 – 07:14]
- Rule:
- 20: Put down 20%
- 3: Finance for no more than 3 years
- 8: Payments must not exceed 8% of gross income
- Luxury cars must be paid for in cash or within 12 months.
- Car payments should NEVER exceed monthly investment savings.
- “Cars are napalm for your personal finances.” — Brian Preston [04:04]
- Market Context:
- Average new car: $50,080; Median single income: $45,140.
- 1 in 6 car payments >$1,000/month.
- 22% of new car loans span 7+ years.
- “They are never getting out from being underwater on their automobile.” — Bo Hanson [05:58]
3. House Buying: 3/5/25 Rule
[07:55 – 10:06]
- Rule:
- 3% minimum down payment on your first house.
- 5+ years Stay in the house at least 5 years.
- 25% Monthly housing costs <25% of gross income.
- Don’t become “house rich, life poor.”
- “We don’t want you to be house rich, life poor with the inability to build wealth outside of your house.” — Brian Preston [08:40]
- Support: Home-buying calculators available at moneyguy.com/resources.
4. Credit Cards: Use, Don’t Abuse
[10:06 – 11:43]
- Guidance:
- Credit card use for rewards and protection is OK; credit card debt is NOT.
- “Credit card use is a-okay. However, don’t mishear us. Credit card debt, no way.” — Brian Preston [10:29]
- Never carry a month-to-month balance due to predatory interest rates.
- “If you’re paying them off monthly… you’re using it different than the people that are using them as a trap.” — Brian Preston [11:04]
5. Debt vs. Investing: Prioritization via Financial Order of Operations
[11:43 – 14:22]
- Insight: Not all debt is created equal—distinguish between high-interest and low-interest debt.
- Order of Operations (“Financial Mutant’s Roadmap”):
- Step 3: Eliminate high-interest debt first (student loans >7% in 20s, >5% in 30s, >4% in 40s; auto loans >10/9/8% respectively).
- Step 9: Prioritize low-interest debt appropriately.
- Rule of Thumb: “We’d rather people pay cash for cars than touch any car debt whatsoever.” — Brian Preston [14:22]
6. Saving & Investing: The 25% Rule
[17:13 – 19:15]
- Rule: Save/invest 25% of gross income (includes employer contributions, retirement plans, ESOP, HSA if invested, pension).
- “If you can save 25%, the earlier you do this, the more freedom and flexibility you’re going to give yourself later on.” — Bo Hanson [18:23]
- Inclusion: Employer contributions count if income <$200k.
7. Always Be Buying (A.B.B.): Market Timing Isn’t for Mutants
[19:15 – 21:03]
- Rule: Automate regular investments regardless of market conditions.
- “Always be buying.” — Brian Preston [19:34]
- Removes emotion; dollar-cost-averaging wins in the end.
- “It is a win, win, win if you can do it this way.” — Bo Hanson [20:14]
8. Pre-Tax vs. Roth 401(k) Contributions
[21:03 – 23:46]
- Rule:
- If marginal federal + state rate <25% → Favor Roth contributions.
- If >30% → Favor pre-tax.
- 25%-30%: Consider personal circumstances, age, expectations.
- “While you’re young and the government offers you Roth… tax-free growth is massive.” — Brian Preston [21:14]
- Tax Arbitrage: Career shifts or early retirement may present future Roth conversion opportunities.
9. Lump Sum vs. Dollar-Cost Averaging: The Goldilocks Rule
[25:03 – 27:37]
- Rule:
- <10% of total liquid portfolio = Lump sum invest.
- 10–20% = Dollar cost average (DCA) over 4 months.
- 20–30% = DCA over 6 months.
- 30–40% = DCA over 8 months, and so on, up to 12 months if >50%.
- “How about…a rule called the Goldilocks Rule that actually takes into account what does this money mean to you in relationship to what you already have.” — Brian Preston [25:03]
10. Financial Order of Operations (FOO): Your Dollar’s Instruction Manual
[27:46 – 29:11]
- Analogy: Like math’s PEMDAS for personal finance.
- “We have the financial order of operations, the 'foo', and to not do it is foolish.” — Brian Preston [28:36]
- Resource: Free guides available on moneyguy.com/resources.
11. When to Seek a Financial Advisor: The Abundance Cycle
[29:32 – 31:59]
- Three indicators it’s time for professional help:
- Complexity: Tax, compensation, estate, or financial planning needs surpass your comfort.
- Time: Inability or unwillingness to keep up with financial management.
- Gravity: When financial mistakes can be six-figure “oopsies.”
- “Complexity naturally is a side effect that happens from success… That’s where we leave the porch light on for you.” — Brian Preston [30:39]
- Philosophy: The show arms you for DIY success, but complexity and stakes eventually justify hiring expert help.
Notable Quotes & Memorable Moments
- On the pitfalls of student loans:
“When you see a stat like 24%, essentially one out of four people think they'll never pay off their student loans… Once again, begin with the end in mind.” — Brian Preston [03:16] - On cars as a financial trap:
“Cars are napalm for your personal finances.” — Brian Preston [04:04] - On housing:
“We don't want you to be house rich, life poor, with the inability to build wealth outside of your house.” — Brian Preston [08:40] - On weighing debt vs. investing:
“Not all debt is created equal… there are two different steps for debt. There is step three, which is high interest debt, and then there’s step nine, which is low interest debt.” — Bo Hanson [12:58] - On the abundance cycle:
“We actually give you the rules and we tell you how to do it… building wealth is surprisingly simple, but it's not easy. If it was, everybody would do it.” — Brian Preston [29:32]
Timestamps for Key Rules
- Student Loan Rule: [02:13]
- Car 23/8 Rule: [04:04]
- Home 3/5/25 Rule: [07:55]
- Credit Card Use: [10:06]
- Debt vs Investing: [11:43]
- 25% Investing Rule: [17:13]
- A.B.B. (Always Be Buying): [19:34]
- Pre-tax vs Roth Decision: [21:03]
- Goldilocks Rule – Lump vs DCA: [25:03]
- Financial Order of Operations: [27:46]
- When to Seek an Advisor: [29:32]
Conclusion
Brian Preston and Bo Hanson’s “Ultimate Money Rules” act as bulletproof guardrails for anyone seeking to simplify their path to wealth. They weave humor, candid statistics, and hard-earned wisdom into rules that can be applied immediately. Listeners walk away with the frameworks (and free online calculators) necessary to conquer debt, invest wisely, and recognize when expert advice is needed so their money can finally work for them.
Explore free Money Guy resources and calculators at moneyguy.com/resources.