Summary of THE ED MYLETT SHOW: Episode - "5 Habits To Become a Millionaire: How Everyone Can Build Wealth in 2025!"

Release Date: May 17, 2025
Host: Ed Mylett
Guest: Candy Valentino (Financial Expert and Author of "Rich AF: The Winning Money Mindset")

Introduction

In this episode, Ed Mylett delves deep into the essential habits required to build wealth and achieve millionaire status by 2025. Joined by financial expert Candy Valentino, the discussion centers around practical strategies for saving, investing, debt management, and cultivating the right mindset for financial success.

1. The STRIP Framework for Wealth Building

S - Savings
Candy emphasizes the importance of establishing an emergency fund. She shares a personal anecdote illustrating the necessity of having three to six months' worth of living expenses saved to navigate unforeseen financial setbacks.

“Make sure you have three to six months of living expenses set aside in a high-yield savings account.”
[02:55] Candy Valentino

T - Total Debt
Managing and eliminating debt is crucial. Candy advises ranking debts by interest rates and prioritizing payments to minimize interest accrued and accelerate debt repayment.

“Put additional money towards the debt with the highest interest rate and then pay in that order.”
[03:30] Candy Valentino

R - Retirement
Planning for retirement involves contributing to both employer-sponsored accounts (like 401Ks) and individual retirement accounts (IRAs). Candy highlights the benefits of tax-advantaged accounts and the importance of starting early.

“Contribute to both these accounts because it is going to give you tax benefits and help you save and invest for the future.”
[04:10] Candy Valentino

I - Investing
Investing should be active rather than passive. Candy compares it to grocery shopping—simply opening an investment account without purchasing assets is ineffective. She recommends target-date funds, ETFs, or robo-advisors for diversified portfolios.

“You can't just open the account, you can't just put the cash in. You have to buy stuff.”
[05:00] Candy Valentino

P - Plan
Having a clear financial plan is essential. Candy introduces the concept of calculating one's "FU number," which determines the total savings needed to fund one's desired lifestyle through investment returns.

“Calculate your FU number by taking your perfect year's expenses and dividing by 0.04 to account for a 4% investment return.”
[06:00] Candy Valentino

2. Mindset: Wealthy vs. Middle-Class

Ed and Candy discuss the contrasting mindsets between the wealthy and those who remain middle-class. Emphasis is placed on the importance of not using wealth to impress others but rather to accumulate and invest assets.

“Most people think taxes are going to be lower, but taxes could be higher. So Roth accounts might make more sense.”
[09:28] Candy Valentino

Candy shares her personal transformation from a spender to a saver, highlighting how avoiding debt and focusing on savings and investments has significantly improved her financial standing.

“At 30, I've made quite a lot more money and I spend less on designer goods than I did in my early 20s.”
[14:26] Candy Valentino

3. Budgeting and Saving Strategies

The conversation underscores the necessity of budgeting and paying oneself first. Candy advises listeners to audit their expenses, eliminate unnecessary subscriptions, and prioritize saving and investing.

“Begin to really micromanage and audit where you waste money, where you spend money.”
[56:44] Ed Mylett

Ed shares his personal habits, such as cutting out streaming services and minimizing unnecessary expenditures, to demonstrate disciplined financial management.

“I've owned multiple expensive cars, but now I prefer buying used to avoid depreciation.”
[15:42] Ed Mylett

4. Debt Management

Candy and Ed discuss the dangers of consumer debt and the importance of avoiding debt that doesn't contribute to asset accumulation. They differentiate between good debt (invested in appreciating assets) and bad debt (used for depreciating assets or to impress others).

“Debt on depreciating assets and unnecessary debt can cripple your financial stability.”
[76:51] Ed Mylett

5. Investing with Discipline

Candy emphasizes the importance of understanding investments and avoiding overly complex or opaque financial products. She recommends maintaining a diversified portfolio tailored to individual financial goals and risk tolerance.

“If you can't explain it, you shouldn't be putting your money in it.”
[09:28] Candy Valentino

6. Financial Independence vs. Wealth

The distinction between financial independence (having enough saved to cover living expenses without needing to work) and wealth (accumulating assets beyond basic needs) is explored. Candy encourages listeners to first aim for financial independence before pursuing greater wealth.

“Financial independence means you have enough savings so that you don't need to work anymore.”
[10:56] Candy Valentino

7. Financial Discipline and Habits

The importance of developing financial discipline early, regardless of income level, is highlighted. Ed shares his journey from minimum wage jobs to building substantial savings and investments through consistent habits.

“Even when I was making $20 a month, I found a way to save money. Those habits built my wealth.”
[11:21] Ed Mylett

8. Advice for Young Entrepreneurs and Children

Candy provides actionable advice for young entrepreneurs and parents teaching children about money. She stresses the importance of early financial education, budgeting, and setting financial goals.

“Teach children to budget their allowance and make informed spending decisions.”
[96:46] Candy Valentino

9. Entrepreneurship and Raising Capital

In discussions with additional guests, including Mark Lore, the topic shifts to entrepreneurship, leveraging debt vs. equity, and strategic capital raising. The emphasis is on building businesses that prioritize financial stability and growth without over-leveraging.

“Equity is preferable to debt as it doesn’t impose repayment obligations that could jeopardize the business.”
[90:29] Mark Lore

10. Conclusion and Key Takeaways

Ed and Candy wrap up the episode by reiterating the importance of financial discipline, strategic saving and investing, and maintaining the right mindset to achieve and sustain wealth. They encourage listeners to take immediate action towards financial goals and cultivate habits that support long-term financial health.

“Wealth is built by your habits, disciplines, and routines.”
[94:15] Ed Mylett

Notable Quotes

1. “Make sure you have three to six months of living expenses set aside in a high-yield savings account.”
   — Candy Valentino [02:55]

2. “Put additional money towards the debt with the highest interest rate and then pay in that order.”
   — Candy Valentino [03:30]

3. “You can't just open the account, you can't just put the cash in. You have to buy stuff.”
   — Candy Valentino [05:00]

4. “If you can't explain it, you shouldn't be putting your money in it.”
   — Candy Valentino [09:28]

5. “Even when I was making $20 a month, I found a way to save money. Those habits built my wealth.”
   — Ed Mylett [11:21]

6. “Equity is preferable to debt as it doesn’t impose repayment obligations that could jeopardize the business.”
   — Mark Lore [90:29]

Final Thoughts

This episode serves as a comprehensive guide for individuals aiming to build wealth through disciplined financial habits, strategic saving and investing, and cultivating a mindset conducive to financial success. Ed Mylett and Candy Valentino provide both theoretical frameworks and practical advice, making complex financial concepts accessible to all listeners.

For more insights and practical steps to enhance your financial journey, be sure to follow The Ed Mylett Show on Apple Podcasts and Spotify.