Episode Summary: 11 Great Ways to Build Wealth (SB1692) | The Stacking Benjamins Show

In this engaging episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy and Doug explore "11 Great Ways to Build Wealth" through a dynamic game show format. Joined by special guests Doc G from Earn and Invest, financial expert Paula Pant from Afford Anything, and Jesse Kramer from Personal Finance for Long Term Investors, the trio delves deep into practical strategies for enhancing personal finances. The episode, released on June 6, 2025, balances informative discussions with lighthearted banter, making complex financial concepts accessible and entertaining.

1. Boost Your Income

The conversation kicks off with strategies to increase earnings. Jesse Kramer emphasizes the importance of long-term growth over immediate but limited earnings:

"If you can zoom out to a slightly wider lens, like, say, over the next year... might be a way to boost your income somehow." [12:04]

Poignant advice from Doc G suggests asking for a raise as a straightforward method to enhance income:

"Prove that you've been showing up at work regularly and doing a good job... maybe it's time to say, hey, I'm worth more than you're paying me." [13:03]

2. Spend Less and Budget Effectively

Managing expenses is crucial for wealth building. Doc G advocates for keeping a budget to understand spending patterns:

"Almost anyone can look at their budget and say, do I really need to spend that much?" [17:03]

Paula Pant introduces the concept of an "anti-budget", where savings are prioritized before discretionary spending:

"With the anti budget, number one, when I say savings, I'm referring to anything that boosts your net worth..." [17:29]

This approach encourages setting aside savings first, fostering disciplined spending habits.

3. Invest Wisely

Investing is a cornerstone of wealth accumulation. Doc G recommends starting simple with broad-based index funds:

"Picking a few broad-based index funds or even one very broad-based index fund and jumping in." [20:04]

Joe Saul-Sehy echoes the sentiment of starting easy to build confidence in investing, emphasizing the importance of long-term growth over short-term gains.

4. Pay Down Debt vs. Invest

A critical decision for many is whether to pay down debt or invest. Jesse Kramer highlights the importance of evaluating the interest rates and risk associated with each option:

"The mistake... is like, oh, well, if I invest in the stock market, I will get 10%... whereas this debt I have, maybe it's my car loan, is only 7%, so I'd rather invest." [45:35]

However, both Doc G and Paula Pant counter that paying down debt offers guaranteed returns by eliminating future obligations, making it a safer bet compared to the unpredictable nature of investments.

5. Homeownership as a Wealth-Building Tool

The traditional view positions buying a home as a primary method to build wealth. Doc G acknowledges the statistical correlation between homeownership and wealth accumulation:

"Buy a home is my answer. It is actually the most successful way to build wealth in the United States." [54:10]

Contrarily, Paula Pant challenges this notion, emphasizing geographic specificity:

"I strongly disagree that it is a good path to building wealth, particularly if you live in a high cost of living area... in Manhattan, it's a slam dunk to rent." [55:38]

This debate underscores the importance of evaluating local real estate markets and personal financial situations before deciding to buy a home.

6. Keep Investment Costs Low

Minimizing fees and expenses associated with investments can significantly impact long-term returns. While not deeply elaborated in the episode, this principle aligns with the overall theme of maximizing efficiency in financial strategies.

7. Polish Your Credit

Maintaining a strong credit score is essential for financial health. Regularly reviewing and managing credit reports can prevent unnecessary rate increases and ensure eligibility for favorable lending terms.

"How often do you look at your property casualty insurances... it's like right after your birthday is a great time to take a look." [44:47]

8. Save for Other Financial Goals

Beyond retirement, setting aside funds for diverse financial objectives ensures a well-rounded wealth strategy. Paula Pant emphasizes goal-based investing, allowing individuals to allocate resources according to specific milestones and aspirations.

9. Insurance Review and Optimization

Regularly reviewing insurance policies helps safeguard against unforeseen expenses that can derail wealth-building efforts. Guests discuss the importance of:

• Property and casualty insurance: Ensuring adequate coverage to protect assets.
• Using brokers: Leveraging professional assistance to find optimal insurance rates.

10. Reduce Living Expenses through Smart Living Choices

Adopting cost-saving measures in daily life can free up significant funds for savings and investments. Ideas include:

• Living in rent-stabilized apartments: Beneficial in high-rent areas.
• Geo-arbitrage: Moving to areas with a lower cost of living to maximize financial efficiency.

11. Maintain Low Investment Costs

Keeping investment-related expenses minimal ensures that more money stays invested, compounding over time to build substantial wealth.

Notable Moments and Quotes

• Anti-Budget Strategy: Paula Pant's innovative approach to budgeting highlights the importance of prioritizing savings to boost net worth from the outset.

  "The anti budget is pulling off savings first and then spending the rest freely." [17:29]

• Debt vs. Investment Debate: The hosts and guests engage in a lively discussion about the merits of paying down debt versus investing, providing nuanced perspectives based on individual financial situations.

  "There's some gray area, and it depends on the person and their personal risk tolerance." [46:54]

• Homeownership Controversy: The differing viewpoints on buying a home versus renting spark an insightful conversation about market-specific strategies.

  "In Manhattan, it's a slam dunk to rent." [55:38]

Concluding Insights

The episode wraps up with a humorous yet thoughtful conclusion to the game show segment, reinforcing the key takeaways:

1. Prioritize Savings and Investments: Implementing strategies like the anti-budget and investing in broad-based funds can set a strong foundation for wealth.
2. Evaluate Debt Carefully: Understanding the dynamics between debt repayment and investment opportunities is crucial for optimizing financial growth.
3. Make Informed Real Estate Decisions: Recognizing when homeownership is beneficial based on local market conditions can significantly impact wealth accumulation.

Overall, Episode SB1692 of The Stacking Benjamins Show offers a comprehensive and entertaining guide to building wealth, enriched with expert opinions and practical advice. Whether you're new to personal finance or looking to refine your strategies, this episode provides valuable insights to help you navigate the complex journey of wealth building.