Podcast Summary: The Stacking Benjamins Show – Episode SB1664

Title: Top 5 Eye-Roll Financial Tips You Should Ignore
Host/Authors: Joe Saul-Sehy, OG, and Doug
Release Date: April 2, 2025
Network: StackingBenjamins.com | Cumulus Podcast Network
Award: Named 2023 Best Personal Finance Podcast by Bankrate.com

Introduction

In this engaging episode of The Stacking Benjamins Show, hosts Joe Saul-Sehy, OG, and Doug dive into the often misguided world of personal finance advice. With a lighthearted and conversational tone, the trio discusses the top five most frustrating and ineffective financial tips they've encountered. Throughout the episode, they blend humor with insightful critiques, making complex financial concepts accessible and entertaining for listeners.

Top 5 Worst Financial Tips

#5: Extreme Couponing

Discussion Highlights: The hosts kick off their list with the pervasive yet counterproductive advice of extreme couponing. They argue that while using coupons can offer genuine savings, taking it to extremes often leads to unnecessary purchases and wasted resources.

• OG: “A lot of times it makes you buy stuff that you don't necessarily need or want. You end up wasting more money because you're like, I got a good deal on 700 rolls of toilet paper.”

• Joe: “We get this financial advice that you and I hear daily, weekly, monthly that just makes me stumble like I just did. Makes you go what? What? Why would you do that?”

Key Insights:

• Psychological Pitfall: Extreme couponing can create a false sense of savings while increasing overall consumption.
• Practical Advice: Focus on using coupons for items you already purchase regularly to maximize genuine savings without overbuying.

Notable Quote:

“The ROI on an emergency fund is not the crappy interest rate you get. You can take it from 1 to 4, whatever you want by using a High Yield Savings Account.” (20:24)

#4: Skipping Emergency Funds

Discussion Highlights: Skipping the establishment of an emergency fund is highlighted as a perilous financial mistake. The hosts emphasize that relying solely on credit can lead to substantial debt during unforeseen circumstances.

• Joe: “Number four is... Why would I have an emergency fund? There is absolutely zero reason for an emergency fund.”

• OG: “Skipping insurance is like a terrible, terrible, terrible idea... It can't go without it.”

Key Insights:

• Financial Safety Net: An emergency fund provides a buffer against unexpected expenses, preventing the need to incur high-interest debt.
• Long-Term Benefits: Beyond just having savings, an emergency fund offers peace of mind and financial flexibility.

Notable Quote:

“An emergency fund allows you to be aggressive with your investing, allows you to be aggressive with your interest deductibles... It gives you the breadth of life.” (21:32)

#3: Buying the Biggest House You Can Afford

Discussion Highlights: The advice to purchase the largest house one can afford is dissected, with the hosts arguing that it often leads to financial strain and underutilized space.

• OG: “I think it's important... to not buy the biggest house you can afford. The upkeep on that house with just two of us and all the wasted space is just an albatross around our neck.”

• Joe: “The house you live in should not be thought of as an investment because you're doing so many things that are counter to the ROI on this house.”

Key Insights:

• Hidden Costs: Larger homes come with higher maintenance, taxes, and insurance costs that can outweigh the benefits.
• Lifestyle Alignment: It's crucial to match home size with current and foreseeable life needs to avoid unnecessary expenses.

Notable Quote:

“Having a million-dollar house means planning on spending on average ten grand a year in just normal maintenance and upkeep.” (31:09)

#2: Making Big Purchases to Motivate Earnings

Discussion Highlights: The hosts critique the strategy of making significant purchases, such as luxury cars, to drive earnings through higher monthly payments.

• Joe: “He bought a Porsche... because he wanted to make sure his paycheck was big and he's motivated, so he's going to buy a bunch of crap he can't afford.”

• OG: “Nothing will get you motivated like having your car potentially repossessed.”

Key Insights:

• False Motivation: Acquiring expensive items for mere motivation can lead to financial instability rather than genuine financial growth.
• Sustainable Practices: Building skills and seeking career advancements are more effective and sustainable ways to increase earnings.

Notable Quote:

“The ROI on an emergency fund is not the crappy interest rate you get.” (20:24) (Note: This appears under #5 but emphasizes the importance of sustainable financial practices.)

#1: Skipping Insurance to Save Money

Discussion Highlights: The pinnacle of poor financial advice, as identified by the hosts, is the recommendation to forgo insurance as a cost-saving measure. They share personal anecdotes illustrating the severe consequences of such decisions.

• Doug: “Skipping insurance is like a terrible, terrible, terrible idea... You can't go without it.”

• OG: “If you skip insurance, you're taking a gamble with your financial stability and future.”

Key Insights:

• Risk Management: Insurance acts as a crucial safety net against significant financial losses due to accidents, health issues, or disasters.
• Cost vs. Consequence: The immediate savings from skipping insurance are often outweighed by the potential financial devastation from unforeseen events.

Notable Quote:

“Skipping insurance is a really, really, really tough call.” (45:07)

Listener Question: Investing an Inheritance

Question from Rob, Minnesota: Rob and his wife have recently received an inheritance and are considering various investment avenues, including impact investing in women-owned and immigrant-owned businesses. They seek advice on balancing charitable intentions with potential returns.

Hosts’ Advice:

• Joe: Advises caution, emphasizing the high risk associated with non-publicly traded investments and the possibility of not recovering the invested funds.

• OG: Suggests focusing on traditional investments for financial stability and using tread carefully with micro-investing platforms like Kiva for socially responsible investing.

• Doug: Highlights the importance of understanding the criteria and risks associated with being an accredited investor, cautioning against unregulated and inherently riskier investments.

Key Insights:

• Risk Assessment: Investments in private or impact ventures carry higher risks and often lack the protections of publicly traded securities.
• Diversification: It's essential to balance high-risk investments with more stable, traditional options to protect overall financial health.
• Social Impact vs. Returns: Aligning investments with personal values is commendable, but it should be done within the bounds of one’s financial capability and risk tolerance.

Notable Quote:

“If you're going to invest money in something that's not regulated, you better be getting a 20 or 25 or 30 or 50 or 100 percent return.” (60:29)

Final Thoughts and Wrap-Up

The episode concludes with the hosts reiterating the importance of discerning financial advice and making informed decisions based on personal circumstances rather than popular but flawed recommendations. They encourage listeners to engage with them through social media and their website to share their own experiences and questions.

Closing Remarks:

• Doug: Reminds listeners to seek professional financial advice and not solely rely on casual or anecdotal recommendations.

• Joe: Emphasizes the significance of surrounding oneself with knowledgeable individuals to foster better financial habits and decisions.

Notable Quote:

“Before making any financial decisions, speak with a real financial advisor.” (72:14)

Conclusion

Episode SB1664 of The Stacking Benjamins Show serves as a valuable guide for listeners navigating the often-confusing landscape of personal finance. By debunking common but ineffective financial tips, the hosts provide actionable insights that promote sound financial habits and strategic planning. Through humor and relatable anecdotes, Joe, OG, and Doug make complex financial topics approachable, empowering their audience to make informed decisions that align with their long-term financial well-being.

Tune In: For more insightful discussions and financial tips, subscribe to The Stacking Benjamins Show on your preferred podcast platform or visit StackingBenjamins.com.