Podcast Summary: "This 22-Year-Old Needs a Reality Check… | Making a Millionaire"

Money Guy Show – Brian Preston & Bo Hanson
Date: October 13, 2025
Guest: Cyrus (22-year-old freelance filmmaker)

Overview

This episode features a candid financial deep-dive with Cyrus, a 22-year-old entrepreneur and freelance filmmaker who has set the ambitious goal of achieving a $1 million net worth by age 30. Hosts Brian Preston and Bo Hanson provide tailored guidance, challenge his expectations, and deliver a reality check on balancing aggressive goal-setting with practical risk management and enjoying life in the present. The conversation is loaded with concrete advice, actionable steps, and thought-provoking reflections for young self-starters navigating wealth building.

Key Discussion Points & Insights

1. Cyrus's Background & Entrepreneurial Journey

• Entry into Filmmaking: Started by taking photos of high school sports, hustling with part-time jobs, and leveraged networking to secure a full-time gig with a prominent YouTuber (04:08, 04:25).
• Transition to Freelancing: Moved from Florida to Chicago for a contract, shifted from employee to contractor, and now operates out of a shared studio (05:31-06:00).
• Current Setup: Works with various clients, focusing on commercial filmmaking and some weddings; prefers project-based work over too many recurring gigs for flexibility and opportunity (07:36, 31:23).

2. Financial Position at 22

• Net Worth: $51,300 (cash, personal/business, investments).
• Income: Anticipated $120k gross for the year, netting around $70-80k after business expenses.
• Savings: Consistently saves but admits income is variable; splits between recurring and "hunt and kill" projects. Emergency fund at ~$15k (07:04-08:42, 32:56).

3. Aggressive Financial Goals & Reality Check

• Goals: $100,000 net worth by end of 2025; $1 million by 30.
• Hosts’ Analysis: Setting stretch goals is motivating, but lacking realism can lead to disappointment and missing out on present joys (10:30-13:32, 16:19).
  • Quote: Brian: “You can turn a power source for good into a cycle of failure... not because you are a failure, it’s because you set bad goals.” (12:19)
• Math Behind the Target: Would need to save $5,300/month at 9.9% return to hit $1 million by 30—over 90% of his net income, which is very aggressive (14:57-15:20, 15:29).
  • Quote: Bo: “If you want to get to a million dollars, you gotta save $5,000 a month. To be able to do that, you have to start like choking out a lot of other stuff.” (17:46)
• Hosts urge Cyrus to focus on the "why" behind his goals and prioritize balance, underscoring real-life data on millionaire timelines (16:19-17:46).

4. Risk Management Blind Spots — The Health Insurance Wake-Up Call

• Health Insurance Gap: Cyrus has been uninsured for 2–3 years—even while traveling, working out, and living in a major city (19:49-20:32).
• Critical Feedback:
  • Quote: Brian: “You’re willing to jeopardize all of it for what’s probably a $250–$300 a month decision… it seems like a blind spot... it hurts my heart because I see so much opportunity, but I see your flame... getting wiped out.” (22:25)
• Alternatives Explored: Marketplace plans, joining mother’s group insurance, trade organizations, MedShare groups (21:41-28:00).
• Action Item: Immediate priority is enrolling in a health insurance plan—either through his mom, the Marketplace, or another group.

5. Financial Order of Operations and Practical Steps

• Step-by-Step Review: Hosts lead Cyrus through the “Financial Order of Operations”—from deductibles and insurance to debt, emergency fund, and investing (28:00-32:40).
• Emergency Fund: Strong, but underfunded for an entrepreneur; should target at least six months’ living expenses (about $25,000+) considering business volatility (34:01-35:23).
  • Quote: Bo: “A true emergency fund should reflect your current lifestyle... not some hypothetical ‘if I had to cut it down, I could.’” (34:37)
• Investing: Roth IRA maxed in last two years, suggested to continue with monthly automation ($583/month); Solo 401k next as income expands (36:39-48:02).
• Compound Growth Examples: Even “just” maxing a Roth IRA from age 22–30 grows to ~$190k; with consistent investing, surpasses $7 million by 65 (via wealth multipliers) (37:25-41:12).

6. Structuring Freelance/Entrepreneurial Life & Taxes

• Business Structure: Single-member LLC electing S-Corp; paying self a salary, collecting distributions; structured based on peer (studio-mate) advice and YouTube research (43:03-46:10).
  • Critical Reminder: Brian cautions to comply with IRS intent—salary must reflect market value of work done in the business (43:48).
• Retirement Accounts: When income and cash flow allow, Solo 401k contributions make sense—salary level affects allowable contributions in S-Corp structure (46:48-48:02).

7. Lifestyle, Spending, & Future Planning

• Budget: ~$3,500/month including wants, basic living, and taxes; health insurance not factored in yet (28:21-29:13).
• Upcoming Major Expenses: Engagement ring, future wedding, purchasing a car for planned move to Austin—should all be included in cash targets/emergency fund (32:56-34:18).
• Purchases & Savings Strategies: For expenses within 1–5 years, hosts advise keeping funds out of the market—use high-yield savings accounts (52:11-53:07).

8. Mindset: Balance Between Dreams, Discipline, and Enjoyment

The hosts emphasize not sacrificing your “now” for an arbitrary number—enjoy life’s key seasons, recognize when to hustle versus when to pause, and let small, consistent habits work their magic over time.

• Quote: Brian: “You’ll never be 22 again... don’t sacrifice your 22-year-old self... you’ll look back and go, ‘for what?’” (16:19)

Notable Quotes & Memorable Moments

• [12:19] Brian: “You can turn a power source for good into a cycle of failure... it’s not because you are a failure, it’s because you set bad goals.”
• [15:29] Bo: “This would be 90% of [your income]... there’s a lot of work we have to do to make this actually happen.”
• [22:25] Brian: “You’re willing to jeopardize all of it for what’s probably a $250–$300 a month decision... it seems like a blind spot.”
• [34:37] Bo: “A true emergency fund should reflect your current lifestyle... not some hypothetical ‘if I had to cut it down, I could.’”
• [40:34] Bo: “If all you did was have $190,000 at age 30, and stop saving, that could become $4.4 million. If you just maxed your Roth IRA until 30 and never saved again.”
• [41:12] Brian: “You’re still in the first year of this enterprise... work your strengths, keep betting on yourself, but also shore up your blind spots.”
• [34:01] Bo: “For an entrepreneur, an appropriate emergency fund for you would probably be $25,000 in liquid cash.”
• [43:48] Brian: “If you go wrong, treat [the IRS] with a level of respect... there needs to be a why.”

Important Timestamps

• [02:10] Start of Cyrus’s story and goals
• [06:02] First review of net worth and entrepreneurship financials
• [10:30] Dropping out of college, supporting rationale
• [13:32] Million dollar goal—reasoning and reality check
• [14:57] Monthly savings required for $1 million by 30
• [19:49] Risk management: health insurance blind spot emerges
• [28:00] Financial order of operations walkthrough
• [32:56] Emergency fund deeper dive
• [36:39] Roth IRA investing strategy
• [43:03] Business structure (LLC/S-Corp, salary, distributions)
• [46:48] When to launch a Solo 401k
• [51:29] Aggressiveness in Roth IRA investment allocation
• [53:14] Homework for Cyrus: health insurance, emergency fund, and automating savings

Practical Takeaways / Homework

1. Immediate:
   • Obtain health insurance—rejoin mom’s plan or use Marketplace/trade group programs.
2. Short-term:
   • Build emergency fund to at least $25,000 to cover 6+ months of living expenses and upcoming known costs.
   • Automate monthly Roth IRA contributions ($583/month).
   • Consider Solo 401k (employee + employer contributions) as income allows.
3. Planning:
   • Think 3D for big expenditures (car, move, marriage): Model “dream,” “down-to-earth,” and “doo-doo” (worst case).
   • Keep short-term savings in high-yield cash, not in the market.
   • Carefully set S-Corp salary, reflecting fair market value.
4. Mindset:
   • Recalibrate expectations—set goals, but don't let them steal joy from the present.
   • Let consistent, systematic investing work; don’t be lured by hustle culture highlight reels.

Closing Thought

This episode powerfully illustrates the balancing act facing young entrepreneurs—between chasing ambitious dreams and making prudent, sometimes unglamorous, decisions to secure their financial foundation. The Money Guys equip Cyrus (and the audience) with clarity, practical steps, and a healthy dose of reality—all while championing the importance of both long-term planning and living fully in the present.