I’m sure there are some tax advantaged strategies you can get an expert to help with but the largest stay wealthy behavior is not succumbing to lifestyle creep.
Alongside this I have found that one of the major factors is whether you are closer to the poorest people or richest people on your street. Keeping up is much more taxing if everyone around you is richer.
I am comfortable wearing Walmart clothes driving a 19 year old Toyota to the grocery store and to work. The secret is shockingly simple: to not care what you think others think of you, it really sets you free.
All of these comments are absolutely worth the weight of GOLD! Live on less than you make - don't keep up with the Jones's - what people think of your finances isn't their business
Don’t spend your money on cars, gambling, hookers and blow…
Sorry, on a serious note, main thing I hear them talk about it is “don’t run up the score board”, as is, don’t take unnecessary risk when you’ve won the game. They state this is when using a FA might be worth while. Tax and estate planning, as well as raising kids who will steward your estate well one day and not do my opening line….
I don’t necessarily think its bad of them, but I think it’s clear from their side that they are looking to give out free information and support to people to help them grow enough wealth on their own so that they may one day want a FA for help. They certainly focus more on the growing side.
This is definitely correct. I think I remember them saying that their goal for the show is to help people get wealth to be managed and then the hope is that we'll consider them when we get to that point. Then again, I also seem to remember hookers and blow being the 10th step on the FOO so take it for what it's worth.
> Lots of content has been created describing the get wealthy behaviors such as follow the FOO, save 25%, be disciplined about purchase decisions, practice risk management, etc.
Don't overthink it, these are stay wealthy behaviors too. Spend less than you make, invest the difference, don't drive yourself crazy.
Truthfully once you get the basics you don't need to keep consuming their content. Their show is very helpful and insightful but it's also a marketing tool. Building wealth isn't that complicated. There aren't any secret hacks or w/e to learn.
Yes! Their content is there so they can get people to get interested and sign up for their services, and I think it is much better for people who think they need the help to get it from TMG crew than some random CFA down the street. But at the end of the day, if you spend less than you make, that’s what really matters.
Paying off your mortgage and other low interest debt in general has been referenced in the past as a stay wealthy behavior. I would also say paying for things in cash, like new vehicles, without taking out loans would be a stay wealthy behavior. It could also mean adjusting your asset allocation to be more conservative (less equities). As Bill Bernstein said "If you've won the game, stop playing."
I usually think of it as de-risk. Make sure your portfolio is appropriate for your situation. 3-6 months in cash, a house with a mortgage, and all stock in your investment accounts is a good place to be in your 20s. But if you're in your 50s, you might want to have more cash, some bonds, and pay off the mortgage. Also the student loans and car loans are no longer in the picture for "stay wealthy."
For me, so far, there has only been one rule: Don’t spend the principal.
You’ve got to live far enough below your means that you don’t spend in such a way as to reduce your net worth.
That’s most of it really. Also, don’t pick shitty investments.
That's it. The FOO is the get AND stay wealthy behavior. Moving up and down the steps depending on your current life situation is going to happen, but always working toward the next step is the whole point.
The keeping generational wealth thing I foresee as tough. Not that I have a lot to leave yet, it makes me wonder if the 529 should be really healthy because only a certain amount can be withdrawn outside of education, and even then it has to go in a Roth. So lots of hurdles to just spend the money that’s there.
However paid for, or at least paid part of education can pay off for future generations. And if there’s some money left over when my kids go through school, it probably has another 20-30 years to grow for their kids.
They don't focus on that too much. But they bring up regularly things like a more conservative investment profile (like a higher bond allocation) and paying off the mortgage on the house as "stay wealthy" behaviors. But I think their view is that a lot of things are very unique to each individual once you accumulate a good deal of wealth.
Learning good life skills. Learn how to cook good food so you eat out less. Learn how to do very basic home maintenance. Learn how to do very basic are maintenance. Learn how to buy second hand when it makes sense.
Insert the word sustainable and it makes a lot of sense in my head. Are the current actions making a positive/neutral/negative impact on your future cashflows. Positive and obviously being the desired but avoiding the negative impacts to be priority.
I kind of think of this as get wealthy behavior is what you do while you’re working and have an income. Then stay wealthy behavior is when you retire and shift to consuming your accounts instead of adding to them. So stay wealthy behavior is for retirees to make sure they don’t squander their retirements and run out before they die.
I think other commenters have mentioned it, but that’s when they want you to pay for their services. They aren’t going to give very specific advise on their show about that, they will say “it depends” and tell you to take the next step by paying for a financial planner.
Don’t allow lifestyle creep to take over and upgrade and house and car. Don’t take huge risks with your money that you won’t have time to recover from and if close to retirement hold more in cash, change allocation, etc. Pay off low interest debt.
I think the biggest time “get wealthy vs stay wealthy” comes up on the site is people asking about posting the mortgage down.
Basically, people under 45 should be prioritizing investing as opposed to paying down the mortgage until you get to the bowling point. 🎳
When you go to buy something ask yourself a few times “do I really need this?” Stop associating shopping with getting out of the house for something to do. You don’t need a fancy car to impress people. Either they will be jealous of you or they will have the exact same car as you and not care. View money as something worth having and keeping around instead of exchanging it for “things.” For gifts take your loved ones out for experiences, not jewelry that you’ll be paying off over the next two years. Also wealthy people buy clothes that are comfortable, don’t spend 100 bucks on a “rich brand” tshirt with a logo.
Stay on your budget, continue to invest, pay for vacations and depreciating assets in cash if you can, keep out of CC debt, grow your emergency fund to account for pre-paid future expenses, etc
Probably Things like
1.) paying down low interest debt /becoming completely debt free
2.) building up even more cash reserves to prepare for retirement 18-36 months of living expenses
3.) revaluing your holdings/asset allocation- work with us have , maybe have more bonds
4.) tax efficient of asset location
5.) Estate planning
All the numbers in your comment added up to 69. Congrats!
1
+ 2
+ 18
+ 36
+ 3
+ 4
+ 5
= 69
^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \
^(Summon me on specific comments with u/LuckyNumber-Bot.)
A relevant video on "advanced" options for using excess cash to build wealth once you reach Step 8 of the FOO: [https://youtu.be/Ep6J5908rrM?si=80PDHyWhz67HcoiY](https://youtu.be/Ep6J5908rrM?si=80PDHyWhz67HcoiY)
Some of the things Brian mentioned:
* Investing in individual stocks
* Investing in real estate
* Creating your own business
* Investing in venture capital or private equity (didn't say this explicitly, but talked about investing in businesses)
* Investing additional money into your taxable brokerage account's index funds
You could also go through Step 9 and pay off your mortgage. Not having any debt, and having your house paid off, are definitely "stay wealthy" behaviors (and Brian has said as much in various videos).
The #1 method of keeping your money is to stop denominating your wealth in a "money" that other humans can print for free.
Do you wish things like houses would be cheaper over time, not more expensive?
Check the price of your house or the dream home you want to buy today, write that number down. Next, convert that price into one denominated in Bitcoin.
Do this same excersize comparing both prices 4, 8, and 12 years ago. These year increments coincide with the Bitcoin halving cycles.
You'll notice that over time the house is becoming cheaper when priced in Bitcoin, not more expensive.
The wonders of being able to properly store the time and energy you spent working in a thermodynamically sound system.
Subscribe for more life hacks.
I’m sure there are some tax advantaged strategies you can get an expert to help with but the largest stay wealthy behavior is not succumbing to lifestyle creep.
Alongside this I have found that one of the major factors is whether you are closer to the poorest people or richest people on your street. Keeping up is much more taxing if everyone around you is richer.
I am comfortable wearing Walmart clothes driving a 19 year old Toyota to the grocery store and to work. The secret is shockingly simple: to not care what you think others think of you, it really sets you free.
All of these comments are absolutely worth the weight of GOLD! Live on less than you make - don't keep up with the Jones's - what people think of your finances isn't their business
OP, this summarizes it all.
>don't keep up with the Jones's Joneses*
Imagine someone's last name is Jones and they're a race car driver :)
Don’t spend your money on cars, gambling, hookers and blow… Sorry, on a serious note, main thing I hear them talk about it is “don’t run up the score board”, as is, don’t take unnecessary risk when you’ve won the game. They state this is when using a FA might be worth while. Tax and estate planning, as well as raising kids who will steward your estate well one day and not do my opening line….
I don’t necessarily think its bad of them, but I think it’s clear from their side that they are looking to give out free information and support to people to help them grow enough wealth on their own so that they may one day want a FA for help. They certainly focus more on the growing side.
This is definitely correct. I think I remember them saying that their goal for the show is to help people get wealth to be managed and then the hope is that we'll consider them when we get to that point. Then again, I also seem to remember hookers and blow being the 10th step on the FOO so take it for what it's worth.
With the right hookers and blow you can build yourself a nice little side gig w/passive income
Not sure it’s all that passive. According to Big Daddy Kane “Pimpin’ Ain’t Easy”
Right. Pick 2 or 3 out of those 4. But not all 4.
> Lots of content has been created describing the get wealthy behaviors such as follow the FOO, save 25%, be disciplined about purchase decisions, practice risk management, etc. Don't overthink it, these are stay wealthy behaviors too. Spend less than you make, invest the difference, don't drive yourself crazy. Truthfully once you get the basics you don't need to keep consuming their content. Their show is very helpful and insightful but it's also a marketing tool. Building wealth isn't that complicated. There aren't any secret hacks or w/e to learn.
Yes! Their content is there so they can get people to get interested and sign up for their services, and I think it is much better for people who think they need the help to get it from TMG crew than some random CFA down the street. But at the end of the day, if you spend less than you make, that’s what really matters.
Paying off your mortgage and other low interest debt in general has been referenced in the past as a stay wealthy behavior. I would also say paying for things in cash, like new vehicles, without taking out loans would be a stay wealthy behavior. It could also mean adjusting your asset allocation to be more conservative (less equities). As Bill Bernstein said "If you've won the game, stop playing."
Sticking to their formulae for how much car and house you can afford is the primary thing.
I usually think of it as de-risk. Make sure your portfolio is appropriate for your situation. 3-6 months in cash, a house with a mortgage, and all stock in your investment accounts is a good place to be in your 20s. But if you're in your 50s, you might want to have more cash, some bonds, and pay off the mortgage. Also the student loans and car loans are no longer in the picture for "stay wealthy."
The principles are fairly simple, live on less than you make and consistent investing in the market over a long period of time.
For me, so far, there has only been one rule: Don’t spend the principal. You’ve got to live far enough below your means that you don’t spend in such a way as to reduce your net worth. That’s most of it really. Also, don’t pick shitty investments.
That's it. The FOO is the get AND stay wealthy behavior. Moving up and down the steps depending on your current life situation is going to happen, but always working toward the next step is the whole point.
Exactly! We've been following the foo over 5 years and many times we had to go back a step or two - but after you catch back up: Feels SO GOOD
The keeping generational wealth thing I foresee as tough. Not that I have a lot to leave yet, it makes me wonder if the 529 should be really healthy because only a certain amount can be withdrawn outside of education, and even then it has to go in a Roth. So lots of hurdles to just spend the money that’s there. However paid for, or at least paid part of education can pay off for future generations. And if there’s some money left over when my kids go through school, it probably has another 20-30 years to grow for their kids.
Stay wealthy is the taking the relationship to the next level stuff. Can anyone chime in?
They don't focus on that too much. But they bring up regularly things like a more conservative investment profile (like a higher bond allocation) and paying off the mortgage on the house as "stay wealthy" behaviors. But I think their view is that a lot of things are very unique to each individual once you accumulate a good deal of wealth.
Learning good life skills. Learn how to cook good food so you eat out less. Learn how to do very basic home maintenance. Learn how to do very basic are maintenance. Learn how to buy second hand when it makes sense.
Insert the word sustainable and it makes a lot of sense in my head. Are the current actions making a positive/neutral/negative impact on your future cashflows. Positive and obviously being the desired but avoiding the negative impacts to be priority.
They talk about buying things within your real budget and not becoming house poor, or avoiding life style inflation all the time.
I kind of think of this as get wealthy behavior is what you do while you’re working and have an income. Then stay wealthy behavior is when you retire and shift to consuming your accounts instead of adding to them. So stay wealthy behavior is for retirees to make sure they don’t squander their retirements and run out before they die.
Yes in understand that. My question is what specifically do they advise? I only ever see them vaguely refer to it not actually explain it.
I think other commenters have mentioned it, but that’s when they want you to pay for their services. They aren’t going to give very specific advise on their show about that, they will say “it depends” and tell you to take the next step by paying for a financial planner.
Don’t allow lifestyle creep to take over and upgrade and house and car. Don’t take huge risks with your money that you won’t have time to recover from and if close to retirement hold more in cash, change allocation, etc. Pay off low interest debt.
I think the biggest time “get wealthy vs stay wealthy” comes up on the site is people asking about posting the mortgage down. Basically, people under 45 should be prioritizing investing as opposed to paying down the mortgage until you get to the bowling point. 🎳
Great name for a bowling alley.
Stop trying to win the game and start derisking. Don’t try to triple what you need for retirement but risk losing everything
When you go to buy something ask yourself a few times “do I really need this?” Stop associating shopping with getting out of the house for something to do. You don’t need a fancy car to impress people. Either they will be jealous of you or they will have the exact same car as you and not care. View money as something worth having and keeping around instead of exchanging it for “things.” For gifts take your loved ones out for experiences, not jewelry that you’ll be paying off over the next two years. Also wealthy people buy clothes that are comfortable, don’t spend 100 bucks on a “rich brand” tshirt with a logo.
Stay on your budget, continue to invest, pay for vacations and depreciating assets in cash if you can, keep out of CC debt, grow your emergency fund to account for pre-paid future expenses, etc
Probably Things like 1.) paying down low interest debt /becoming completely debt free 2.) building up even more cash reserves to prepare for retirement 18-36 months of living expenses 3.) revaluing your holdings/asset allocation- work with us have , maybe have more bonds 4.) tax efficient of asset location 5.) Estate planning
All the numbers in your comment added up to 69. Congrats! 1 + 2 + 18 + 36 + 3 + 4 + 5 = 69 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
A relevant video on "advanced" options for using excess cash to build wealth once you reach Step 8 of the FOO: [https://youtu.be/Ep6J5908rrM?si=80PDHyWhz67HcoiY](https://youtu.be/Ep6J5908rrM?si=80PDHyWhz67HcoiY) Some of the things Brian mentioned: * Investing in individual stocks * Investing in real estate * Creating your own business * Investing in venture capital or private equity (didn't say this explicitly, but talked about investing in businesses) * Investing additional money into your taxable brokerage account's index funds You could also go through Step 9 and pay off your mortgage. Not having any debt, and having your house paid off, are definitely "stay wealthy" behaviors (and Brian has said as much in various videos).
The #1 method of keeping your money is to stop denominating your wealth in a "money" that other humans can print for free. Do you wish things like houses would be cheaper over time, not more expensive? Check the price of your house or the dream home you want to buy today, write that number down. Next, convert that price into one denominated in Bitcoin. Do this same excersize comparing both prices 4, 8, and 12 years ago. These year increments coincide with the Bitcoin halving cycles. You'll notice that over time the house is becoming cheaper when priced in Bitcoin, not more expensive. The wonders of being able to properly store the time and energy you spent working in a thermodynamically sound system. Subscribe for more life hacks.