Financial Advisors React to INSANE Money Clips

Introduction: Insane Financial Reacts (0:00)

Brian: I’m a little nervous today because the content team seemed a little too giddy about these insane reacts.

Bo: And Brian, I am so excited to see what our production team has put together for us. Let’s dive right in.

A $1,400 Car Payment Disaster (0:13)

Video: What’s going on, folks? It’s your boy Steve-o. Got me rolling today. I got my dog Money approved. $1,400 for 72 months. Diesel 4×4. How was the experience here today, bro? Hey, bro. Look, Steo and Chris, they’re the truth. Come with him. Get you a car. They’re going to get you rolled up. That’s all you need.

Brian: He should have put that money down. Put that money on that car. Why does he still have all the money in his pocket?

Bo: Deep breaths. Deep breaths. Deep breaths. Just because you can do something does not mean that you should do something. Just because Steve-o can get you rolling in a $1,400 car payment for 72 months with only $9,000 down—does not mean that you should do that. You do not want Steve-o to get you rolling.

Brian: Think Corolla, not 2500.

Bo: That doesn’t have the same ring to it.

Apple Pay Confusion: Real Money, Not Apple Dollars (1:05)

Video: If you use Apple Pay, honestly, just be so careful. When you use Apple Pay, that’s real money. That’s true American dollars from your credit card. If you have your credit card connected, that’s where the money is being sourced from. It’s not like a special form of Apple Pay. Apple, why they don’t just say this is real money while you’re paying, I don’t know. Because I thought that I had accumulated a bunch of Apple dollars to use for Apple Pay by spending so much time on my phone, giving my data very freely and willingly to any place that asks. Like whenever they say, “Are cookies okay?” I say, “Yes, yes, yes.” Because I thought that’s how I was getting prizes, getting rewards, getting Apple dollars. So, I didn’t think that was real money till I checked my credit card bill. I’ve been spending money like I’m a freaking millionaire. I call Apple to straighten things out. I go, “Could I please speak with Mr. Steve Jobs.” They go, “He’s no longer with us.”

Brian: Okay. Now, well done. Well done. She had it. She had me going. First of all, content team, I felt so awkward to be in the room with this person with the tears and everything. I was like, why would they put us in the room with a crying lady?

Bo: I do think a lot of people fall into this trap that when they start using things like buy now, pay later, they start using credit cards, they start using things that you don’t tangibly and tactilely feel your dollars leaving you. It becomes far too easy.

Brian: Hey, by the way, I’d be all about if Apple would give me some rewards. Cookies? Yes. Yes. Yes. I love cookies.

The Gambling Doubling Strategy: A Recipe for Devastation (2:36)

Video: You were gambling and like consistently winning. How are you able to do that? I always just raise a bet until I win. So, say I lose $50,000 on a blackjack hand, the next one just put down $30,000 and you lose, put down $50,000, put down $60,000. And either it ends in devastation or you’re good and you win. So now you’re sitting at 90% chance that I win and there’s a 10% chance that I’m fully devastated and the loss is so bad that there’s a huge problem. So we’re just going to pray that doesn’t happen. It has never happened. Yet. But now I got $4 million and I’m definitely not paying no taxes.

Brian: Gosh, don’t say that out loud.

Bo: Me and my buddies have had this conversation before. Hey, we’re just going to go in. We’re going to get the closest to 50/50 odds we can do and we’re going to bet $20. If we lose, we’ll bet $40. If we lose, we’ll bet $80. You just keep doubling, doubling, doubling. The reason that strategy often doesn’t work inside of gambling scenarios is because often tables or games have limits where eventually you will hit the limit. You will no longer be able to recoup your losses. If it were that easy and you could play the math game to come out ahead, casinos and gambling institutions would not be set up the way that they are. The house always has the edge. The longer you play, the longer you participate, the higher your likelihood of losing your money.

Brian: Well, you realize the finger is already on the scale. It’s just like you play roulette, you think, okay, it’s going to be red or black. That’s 50/50. No, there’s a few other slots on there. There’s green, there’s the double zero. They put other slots on there to skew the odds even more. Why would you challenge yourself? And emotionally, you’re also going to be a wreck. That’s crazy. That’s not the way that I would go about building. That is insane.

Why Not a Trillion? The Million Dollar Mindset (4:07)

Video: You just worked 10 years and you have $15 million in the bank. I know that sounds like a lot of money, but it ain’t a lot of money because you can spend it really fast. Or I could just work for 10 years and go for $100 million. Why not a trillion? Why not work for 10 years and go for a trillion at that point? See, because I get you think $100 million is a lot, but it’s not a lot because you could spend it. You should go for—you’re working for 10 years for $100 million. I’m working for 5 years and I’m going for a trillion.

Bo: This is so funny because so often in our comments, Brian, we see this. Someone will be like, “Oh, a million’s nothing.” Yeah, a million dollars doesn’t do anything. Why do you care about being a millionaire? And so often people dismiss this. Oh well, a million’s nothing. So why would I even try to do anything? A million dollars even today, even where we sit right now is still a lot of money. You can’t get to $2 million, $3 million, $5 million, $15 million, a hundred million unless you get to $1 million.

Brian: Well, I even think it cuts into the fact of social media culture. You don’t know what’s real and not real. I mean, how many times have we heard about influencers who are renting the Lamborghinis or the McLarens that they have? And that doesn’t mean it’s reality.

Credit Card Loop Schemes: Too Good to Be True (5:12)

Video: You could use a credit card to buy a gift card and then use that gift card to go to like Walmart, the grocery store, the post office. And a gift card is essentially a debit card. Has a number on there. It has like a pin. So, you’re exchanging cash for cash. A money order is a check. You take that check and deposit into your bank account. Then, you take the money in your bank account and you pay off your credit card. Essentially, you have like a full loop. And if you’re doing that at a multiplier, then you’re able to make 1% or 2% or 3% back on that. And so that was like level one. Level two was you could go to the store and you could buy an item on a credit card and then return that item back to a debit card a few days later. Now you bought it, you got the multiplier on the credit card. You return the product, no cost to you. The money goes back to a debit card and then again you complete the loop.

Brian: Yeah. But the rebate, the rewards go back too.

Video: That way it’s still very possible. I mean, we have some people in our community that are doing $3,000 to $5,000 to $7,000 a month.

Brian: One of the biggest hacks that you can do, like when you’re going on a Disney cruise, you go to Costco, you buy the Disney card, you buy the prepaid, then you buy your cruise. You essentially got a 2 to 5% discount because you use the rebate cards, but you wouldn’t go buy, return, and then expect to keep the rewards. It just doesn’t work. Do you think the banks are that dumb? They’re smarter than that.

Bo: Often times there are transaction costs associated with these when you’re buying or when you’re returning or when you’re trying to buy gift cards or whatever the case may be. If this were possible and these loopholes would exist, they would immediately be closed where you couldn’t do it anymore. They’re not out to lose money. I would be careful following advice from someone telling you it’s that easy.

$168,000 in Debt with Blue Seats (6:44)

Video: How much debt do you have? Like $168,000. None of which is a house. What do you have? Two car loans. I have two vehicles. So it’s 58 miles for me to drive to work every day. And the truck is an 8-cylinder Silverado. Get rid of it. I can’t. I end up getting like a really great deal on that truck. Yeah, really great deal. $60,000 at 72 months making $24,000 a year. Did you have a truck? How do you get a—my truck has blue seats on the inside?

Brian: Oh, no. It’s a custom truck.

Bo: Oh, I didn’t think about the blue seats.

Brian: He’s exactly right. You know, think Corolla, not Land Cruiser. Don’t buy your cars in pairs. He acted like a 58-minute commute was justification for two cars.

Bo: We think there’s a better way to buy cars and it’s 20/3/8. What he did is, you know, he had 20 bucks down. It looks like he paid three times the cost of the car. And I can’t figure out what the eight was. You want to follow 20/3/8. 20% down. Don’t finance it for any more than 3 years or 36 months. And the total car payment cannot exceed 8% of your monthly gross income.

Brian: $24,000 a year. You know, if you’re going to go below the 8%, his car payment is going to have to be less than $200.

Ashley Got Me Rolling: The Steve-o Franchise Expands (8:00)

Video: We got a new character. Meet Ashley. Ashley got me rolling. Y’all heard it. Aiden, right? The ultimate six time. We got him right here. All grown up. All right. Got him approved today on this 2020 Chevy Malibu. Aiden. How was your experience here today, brother? I loved it, bro. I appreciate it. Easy. Yes, sir. How much did you put down today on your car? 5K. How much is your monthly payment? $1,500.

Bo: We’re building franchises out here for Steve-o’s got me rolling. So Steve-o has now got Ashley to now get you rolling. $1,500.

Brian: He put down $5,000 by the way.

Bo: Now here’s the thing. At least it was 36 months, right? I’m trying to put a silver lining here. When we say 20/3/8, we don’t want you to finance it. And so maybe here’s what happened. Steve-o as he’s recruiting his people, he says, “Ashley, we got to start selling these cars.” She said, “Okay Steve-o, but I’m a big fan of The Money Guy Show and so we have to when we do this, we have to follow 20/3/8.” And so she said we can’t let them finance this car for any more than 36 months. So at least, you know what, I’m going to take this as a win that we are moving in the right direction slowly. Steve-o’s going to have you making responsible financial decisions.

Brian: I think it’s sad that Steve-o’s business is so profitable that he’s franchising this out to multiple personalities right now. Are we that bad with money that we think a four-figure payment is just the monthly norm now? That’s a $1,500 mortgage payment. $1,500 a month. That’s why Steve-o got you rolling to the ditch.

What Does It Feel Like to Be Rich? (9:36)

Video: How does it feel to be rich? It’s sick. You’re rich. Feels good. Po, how’s it feel to be rich? Why does it feel good? Because I don’t got to worry about money. You don’t worry about money? I can go eat at a nice steak restaurant. I can go take an Uber without looking at my bank account. I can book you. So you think you work less hard now that you have money? No. So you work harder now? Yeah. So wouldn’t you say you’re more worried about money now?

Brian: Oh, that’s like deep thoughts from hoodie guy. I have a question. So when I was a kid, I got stung by a lot of bees. The most painful bee sting I ever received was on my ear. Okay. I gotta think getting ink on your ear is a choice. That’s where you went with—did you see it? He had it on the ear and I’m sitting there thinking about that yellow jacket nest that I got a hold of building that clubhouse out in the woods. That had to have hurt. You’ve—I mean what do you know? What do I—that’s probably not usable, but that’s what I thought about. That’s got to hurt.

Conclusion: There’s a Better Way (10:39)

Bo: We believe that there is a better way to do money. A lot of these folks have not quite figured that out. But if you want to do money better, we’d encourage you to go to moneyguy.com/resources. Check out all of our free resources. Check out all of our tools. Check out all of the content available out there to help you do money better. I’m your host, Brian, Money Guy Team. Out of here.

Brian: That was horrible, too. Should we re-record that?