Money Guy Show: X% of Americans Don't Have $1,000!
Release Date: March 10, 2025
Hosts: Brian Preston and Bo Hansen

I. Introduction: Addressing a Critical Financial Shortfall

In the March 10, 2025 episode of the Money Guy Show, hosts Brian Preston and Bo Hansen tackle a pressing financial concern: the alarming statistic that a significant percentage of Americans lack a $1,000 emergency fund. This episode delves deep into the implications of this shortfall and offers actionable strategies to help listeners build their savings effectively.

II. The Alarming Statistics: A Nation Unprepared

Bo Hansen opens the discussion by expressing optimism about improving the dire savings statistics. He states, “I really believe deep down in the fiber of my being that we can improve this” (00:43). Despite this optimism, Brian Preston presents a stark reality: according to Bankrate, approximately 60% of Americans struggle to come up with $1,000 for emergencies (01:36).

Bo reflects on previous data trends, noting a slight decrease from 60% to around 56-57% post-pandemic, suggesting some progress. However, recent surveys indicate a regression, with 59% of Americans again unable to secure $1,000 (02:03). This regression underscores the persistent challenge in financial preparedness among the populace.

III. Strategies to Build the Essential $1,000 Emergency Fund

Recognizing the gravity of the situation, Brian and Bo shift focus to practical solutions aimed at helping listeners bridge the savings gap.

A. Auditing Subscriptions

Bo emphasizes the importance of reviewing and auditing all personal subscriptions. He uses the example of cutting cable and replacing it with multiple streaming services, highlighting how hidden costs can drain finances (03:30). Brian adds a practical tip: leveraging credit card benefits to access subscriptions at reduced or no cost, such as using an Amex credit card to obtain a free Walmart Plus subscription (04:07).

Notable Quote:
Bo Hansen: “If you are going to participate in [subscriptions], find the best ways to do it. One, cut down on the ones that you don't need and two, if there are less expensive ways or hacks, make sure to.” (04:23)

B. Meal Prep and Affordable Grocery Shopping

Brian introduces the concept of meal prepping and shopping at more affordable grocery stores as effective ways to save money. He references his own book, Millionaire Mission, discussing the "$200 a month challenge" and the benefits of conducting a pantry audit to prevent unnecessary purchases (03:30 & 05:43).

C. Pantry Audits to Prevent Overbuying

The hosts share personal anecdotes about the consequences of not conducting pantry audits, such as overstocking condiments while neglecting essentials like mayonnaise. This practice ensures that grocery spending aligns with actual needs, reducing waste and conserving funds (05:43).

D. Tracking Expenses and No-Spend Challenges

Bo advocates for meticulous expense tracking and introduces creative methods like the "no-spend challenge." This involves restricting discretionary spending for a set period (e.g., from Monday to Friday) to accumulate funds for an emergency reserve (06:22).

Notable Quote:
Bo Hansen: “Maybe you should try something creative like a no spend challenge... to see if we can get that thousand dollars built up.” (06:22)

E. The Importance of Budgeting

Brian acknowledges his personal aversion to budgeting but underscores its necessity in gaining financial control. He emphasizes living below one's means as a foundational principle for financial independence (06:44).

Notable Quote:
Brian Preston: “If you're not disciplined living on less than you make, you'll never have the opportunity to own your financial life.” (06:44)

IV. Emphasizing Financial Discipline and Long-Term Planning

Bo and Brian stress that initial financial discipline paves the way for long-term financial freedom. By adopting small, consistent changes in spending habits, individuals can master their finances and focus on pursuing their passions rather than merely surviving financially.

V. Listener Q&A: Navigating Complex Financial Scenarios

The second half of the episode features a Q&A segment where listeners pose personal financial dilemmas. The hosts provide tailored advice, incorporating their financial order of operations framework.

A. Building a House with Variable Income (10:51)

Listener Question (Foolish Mortal):
Considering building a house in the fall, with plans that a spouse might reduce work hours upon having children, what income should be used for the 25% gross income rule for housing costs?

Hosts' Response:
Bo outlines the importance of adhering to the 25% rule to prevent financial strain from high housing costs, especially when future income might decrease. He recommends using the reduced income estimate to ensure affordability. Brian adds the significance of scenario planning through the "3D Plan"—Dream, Down-to-earth, and Doo-doo plans—to account for various potential futures.

Notable Quote:
Bo Hansen: “When it comes to your housing costs, you need them not to exceed 25% of your monthly gross income...” (11:24)

B. Prioritizing Mega Backdoor Roth After 401k Match (17:23)

Listener Question (Alec M.):
Is it advisable to prioritize Mega Backdoor Roth contributions after maximizing the 401k match, especially when behind in the after-tax bucket and aiming for FIRE (Financial Independence, Retire Early)?

Hosts' Response:
Brian and Bo explain that Mega Backdoor Roth is a later-stage financial strategy and should not supersede foundational steps like securing the employer match. They advise that maintaining a balanced approach aligned with one's financial goals and current stage is crucial.

Notable Quote:
Bo Hansen: “Mega backdoor Roth... comes much later in the financial order of operations.” (19:38)

C. Converting a Home to a Rental and Roth Maxing (26:10)

Listener Question (Joshi J.):
After converting a first home into a profitable rental property, is it out of order to maximize Roth contributions?

Hosts' Response:
Bo reassures Joshi J. that diverging from the prescribed order is acceptable based on individual circumstances. He emphasizes leveraging the positive cash flow from the rental to catch up on Roth contributions and recommends using available resources to identify and fill any financial gaps.

Notable Quote:
Bo Hansen: “What we love to see... you have a lot of free capital and free liquidity. I would take a look at the financial order of operations and see where you have holes.” (26:32)

D. Managing HSA Funds When Changing Health Insurance (31:52)

Listener Question (Matthew M.):
What happens to an HSA fund if one leaves their company's health insurance to join a spouse's plan upon having a baby?

Hosts' Response:
Bo explains that HSA funds remain yours regardless of employment changes. If switching to a non-HSA-eligible plan, contributions to the HSA cease, but existing funds can still be used for medical expenses or continue to grow tax-free. He shares a personal anecdote to illustrate the flexibility and benefits of maintaining an HSA.

Notable Quote:
Bo Hansen: “You can leave your HSA where it is. If you change health plans to one that's not HSA-eligible, you can still use the funds but cannot make new contributions.” (33:01)

VI. Conclusion: Empowering Listeners with Financial Knowledge

Wrapping up the episode, Brian and Bo reinforce the importance of financial literacy and proactive planning. They encourage listeners to engage with their resources, such as visiting MoneyGuy.com for tools like the home affordability calculator and the "Know Your Number" course. Additionally, they invite listeners to participate in future shows by submitting questions and sharing their financial stories.

Final Remarks:
Bo emphasizes the uniqueness of each individual's financial journey, advocating for flexible yet structured approaches to building wealth. Brian highlights the value of transparency and community engagement, ensuring that the Money Guy Show remains a trusted resource for financial empowerment.

Notable Quote:
Bo Hansen: “No two paths and journeys are the same. The financial order of operations is a probabilistic path to success, but it’s adaptable based on your unique circumstances.” (26:32)

Resources Mentioned:

• MoneyGuy.com Resources:

  • Home Affordability Calculator
  • Know Your Number Course
  • Free Financial Order of Operations Guide

• Courses and Books:

  • Millionaire Mission by Brian Preston
  • Financial Order of Operations

• Upcoming Episodes:

  • Future Q&A sessions addressing listener questions
  • Episodes focusing on specific financial strategies and personal stories

By addressing both the statistical concerns and providing tangible strategies, the Money Guy Show equips its audience with the knowledge and tools necessary to achieve greater financial stability and confidence. Whether it's through managing subscriptions, optimizing grocery spending, or navigating complex financial decisions, Brian Preston and Bo Hansen offer a comprehensive guide to overcoming financial hurdles.