fbpx
U

Bear Market Investment Opportunity: Are You Missing Out? #trending

March 6, 2023

Maximizing every dollar that comes your way is so important when it comes to building wealth. In this highlight, Bo and Brian share valuable insight on how you should approach building wealth and saving money while in a bear market.

Want to know what to do with your next dollar (whether the economy looks great… or not so great), you need this free download: the Financial Order of Operations. It’s our nine tried-and-true steps that will help you secure your financial future. 

Transcript

Let’s dive into Singer 117’s question. It says, “I’m 29 and just started my Roth 401k and Investments almost exactly two years ago, almost 10K value in both which is awesome. I’m conflicted on adding cash to save for a home and miss out on this bear market. Thoughts?”

Yeah, this is a common thought that a lot of young people aspiring to build wealth have. They think, “okay, I’m in these early stages. I listen to The Money Guy show. I know how powerful one dollar can be. I know that one dollar can turn into 88. So everything that I do, I want to focus in that direction.”

We see people making decisions like in your situation – not saving for a house down payment. Or maybe a more aggressive one that we see is people not actually having an emergency fund. They want to get those dollars working and going in the right direction. And I love the fervor, excitement, intention, and intensity at which you’re approaching building wealth.

However, you do have to stop and pause and say, “okay, what’s the goal here?” Money is nothing more than a tool that allows us to do the things that we want to do. So one of the things that you might want to do one day is retire. You might want to have a portfolio large enough that you can live off of it. You might want it to provide for your needs. But before that point, you may have the desire to own a home, to start a family, to set roots, to establish yourself. And so, if that is one of the goals, I think it’s okay to make one of your top priorities building up that cash and starting to save for that down payment so that you can satisfy that goal, because that’s more of a near-term goal than a long-term goal.

Now in our world right now, I’m curious to hear your thoughts on this. I love when it’s not all or nothing. I love when people still do things like, “Okay, I’m going to save for a down payment, but I’m not going to walk away from that employer match. And I’m not going to carry the high-interest debt. I’m going to have an emergency fund. And maybe I’m even going to do my Roth IRA, my HSA, and I’m going to do both. And I’m going to do both so I can actually be building towards both of those goals simultaneously. It’s not necessarily either-or.”

Well, let’s first make sure we leave the question with some type of nuggets of information that they can consider seeing how this reply applies to them. When we do the Financial Order of Operations, steps one and four are cash-heavy. Step one is just deductibles covered. That’s where you’re just going to add up your health insurance deductible, you’re going to find out what your car insurance, homeowner’s insurance, and take the highest number that gets you passed step one. That just keeps you out of catastrophic trouble. Step four, after you get the employer match, after you pay off the high-interest debt, that’s to get to the three to six months. That’s the way we think you ought to do about cash.

But here’s the trap: a lot of financial mutants (because I fell deadhead first into this trap) start getting excited about watching their money grow. There is something truly fabulous about watching your money, especially when you hit some up points where it makes more in a week than you made in a month. I mean, there are some really cool things that happen with compounding growth. But do not, and I repeat, do not fall into the access to cash versus actually having cash in step one of the Financial Order of Operations.

I’m just telling you, you don’t have to feel like you have to get creative. You’re not in this journey alone. We’ve been there, done that, and we’ve helped thousands and thousands of people with this process. Go check it out moneyguy.com/resources. You too can see our tried and true systems.

Connect

Subscribe

Most Recent Episodes

What I Learned From Being BROKE!!! (And Why I Wouldn’t Change It)

No one disputes the fact that being broke isn’t great. We want to spread the word that no matter where you came from, you can build wealth. In this episode, Brian and Bo share personal stories about their journey to wealth and lessons they learned along the way....

Top 10 Mind-Blowing Money Stats (2023 Edition)

These 10 money stats will blow your mind! We’ll discuss the unbelievable amount of money Americans save, when most reach millionaire status, and how many Americans carry a credit card balance. Research and resources from this episode: Most Americans don't have enough...

Wealth Multiplier Revealed: The Magic of Compound Interest!

There’s a reason why Albert Einstein called compounding interest the eighth wonder of the world! Do you know exactly how it works and how much your dollars could turn into by retirement? The Money Guy Wealth Multiplier can show anyone just how powerful every dollar...

From $0 to Millionaire in 10 Years (Is it Possible?)

How can you become a millionaire in 10 years or less? We’ll discuss common ways we see millionaires build wealth quickly, including through real estate, entrepreneurship, and the stock market. Discover how real wealth is built and why building wealth quickly may not...

Financial Advisors React to INFURIATING Money Advice on TikTok!

Brian and Bo are BACK to react to some more TERRIBLE financial TikTok advice! Join us as we take a look at some of the worst financial advice on the platform and tell you what to actually focus on in your own financial life. Enjoy the Show? Sign up for the Financial...

Investing Showdown: Dollar Cost Averaging vs. Lump Sum!

It’s a debate as old as time: what’s better, dollar cost averaging or lump sum investing? In this episode, we’ll cover the nuances and pros and cons of both, including in-depth case studies comparing investors at different times. Research and resources from this...

Is Inflation Really Ruining Your Finances? (You Won’t Like the Answer)

Inflation has changed our daily living expenses dramatically over the last few years. While we can’t control all of our expenses, there are many things in your control that can help you become a Financial Mutant and build wealth better than your peers. Enjoy the Show?...

Are $1,000 Car Payments Becoming the New Norm?!

New data shows more Americans than ever have car payments over $1,000. Is this becoming the new normal? How much could having a car payment of $1,000 be costing you for retirement? For more information, check out our Car Buying Checklist!