Hey guys, the team has put together some cold videos for us on big money mistakes. I am so excited to see what the internet has for us today. Let's dive in. This is how much I made this week of the 20 year old full time day trader Monday in one day allows 4,270 dollars.
It's been worse. Tuesday saved my week. $7,100. Maybe this week ain't so bad. Wednesday, big news event. I didn't trade $0.00 a day off. You last week how I get used to losing so much money. I don't. And today, I said I was going to come back. I dug a deeper hole. But I'm only down this much. It's been worse. Surprisingly. Hopefully next week is better.
Oh my gosh, I don't do public math, but I saw there are a lot more negatives than positives. And can you imagine? You could sense it almost in the video. His everyday interaction with happiness and sadness is directly correlated to what happened in his trading portfolio. For me, that would be a disaster emotionally and for relationships.
That felt the exact same way as I have friends who love going to the casinos and they'll come and tell me, oh, I was hot and I hit it. Oh man, I got it. I got it. But it's okay. I'll make it back. It's okay. It's good. That is not investing. That is not wealth building. Day trading and having huge wins and huge losses on a day to day basis is not how you build wealth over the long term. I would say that was indeed a big money fail.
I've been losing all my money, school has been in, so I'm selling my car at Carmax, so I can get some money and then on tonight's Cowboys, Bengals, Monday night football game. I need some money. I lost thousands yesterday. They just gave me 3,000 and I know I shouldn't do this, but I'm better than it tonight on Monday night football. Jamar Chase, 50 yards, Jailborough, two pass of touchdowns, Cooper Rush, 20 yards. I want to get some stuff on my career.
Can you imagine your stuff being so bad that you had to go hawk your car to get rid of your car and then you're gonna take that money and go bet and you know what I'm gonna bet run I bet it didn't hit.
I bet that he did not get that money back. Nate, can you confer? He did. He just lost that money, Brian. I think that we talk about compounding growth. You can also have compounding bad decisions where you keep making one bad decision and you chase it with another. The sheer fact
that he's having to go sell a car or get a title loan on a car to be able to do sports betting. It just breaks my heart. And then the fact that he still has, if he hits it, you notice he didn't say, I'm going to go fund my Roth IRA. He had his eye on this consumption decision of buying a BMW. That is just not the path to success. We work with thousands of millionaires. And I can just tell you that that is not their journey to building seven figure wealth.
Could you imagine if one of our employees called it and said, hey guys, I cannot come to work today because Joe Burrow did not throw for two touchdowns last night. I sports bet my car and it's gone. Maybe I'll see y'all next week. Hey, I'm noticing the trend here. Understand that there was between gambling, speculating versus investing. Investing can actually build wealth for you. Gambling, speculating. Yeah, maybe you get it. You hit it.
But there's the sheer numbers, the majority of people are going to come out as a sad tale. Walking is for people who are broke. Do you think any respectable business owner is going to waste their time trying to pass by slow walking normal people? People don't respect their time, which is why they walk as slowly as this. And then you as a business owner, you have to take over. It's going to waste a lot of your time. That's why rich people don't walk. If you've got to walk through the premium version of walking, which is on a freaking treadmill in your house, at your desk, making money.
Rich people don't walk. I just I don't think that's true I know many very wealthy people and a lot of them walk a lot of wealthy people Walk all the time if you are at the place where walking is causing you to not build wealth and the only type of walking you ought to be doing is premium walking at your desk on a treadmill
I don't argue you haven't found the right job yet. Proof. If you go look at the Apple campus that Steve Jobs designed so he because he did some of his best like decision making while he was walking. It kind of maybe is wrong. He could see. What do you say? Do you say millionaires? Maybe he meant to say millionaires don't walk. But billionaires do. I don't know. But I disagree. I'm sure it was all a joke.
Jason this is Alex with earth motor cars give you a call about your 21 SF-90 you have for sale? Yes sir yeah I'm trying to get rid of this car and I wanted to trade it Corvette Stingray C8 I think it's the 21 yeah okay and you have a Ferrari SF-90 for trade?
Yeah, I do, man. Yeah, that's that's the car that I want to kind of get out of now. So, okay. I don't know, man. The payments are getting kind of crazy. So I thought I understand. Yeah, sure. Yes, I want to get as close to my payoff as possible or if not all of it. Okay. I mean, we'll mount on the car. So, okay. Well, how much do you owe on it? About 690 something. Oh, man.
Oh, yeah, I bought the car for seven, seven years. I'm going to be honest with him. And my number is probably going to start with a four. Oh, my God. Yeah, man, you're close to a little over $200,000 in negative equity, bro. Graham Stephan had some content on with this gentleman who's from Atlanta. I was like, how do I not know this guy since we're Atlanta boys? And he was saying he sold luxury cars, you know, kind of these exotics.
75% of people that are buying those type of cars are financing them for super 12 years. And I couldn't believe it. So to hear somebody has $200,000 of negative equity, guys, what are we doing? Don't drive your wealth around. It's better to be rich than to just look rich. And do people really care what you're driving in the first place? No.
are some of those out there and when you do buy an automobile we think you should follow twenty three eight twenty percent out of those cars are fine and it's pretty more than three years and you cannot have your car payment exceed eight percent of your monthly gross income that guy did not follow any of those and our number one caveat is if you buy a luxury automobile you do not finance it you have to pay cash
for luxury automobiles or else you're going to find yourself in a situation. Maybe you're not $200,000 underwater, but maybe you're $20,000 underwater and any underwater on a vehicle is too underwater on a vehicle. Here's a succinct thought. If you had to put premium fuel in the vehicle, you ought to pay cash for it. Ooh, I like that. Write that down.
I would encourage people to really look into the penny stocks for you paying a couple dollars, 50 cents or whatever, whatever, within five or six months. That money will flip so fast. You're gonna have to flip all right. The two of these where I got into crude oil, it was fluctuated, it was $3, $2, and they ended up kind of doing my research. And I found a competitor, they kind of had the same trend. When I'd seen them, they were down one of like 39 cents. So I bought in to it, right? I like that music they put in the background. It makes it small more.
This is not investing. This is no different than Adrian Peterson sitting at a roulette table saying, hey, you know what I love? I love the red 17. That red 17 is like in high. And yeah, you might hit red 17 and you might get a big ROI. But over the long term, that is not a consistent and sustainable investment strategy. Picking penny stocks, hoping that you're going to find the one that happens to go 10X is not how you build well. Was that Adrian Peterson?
Yeah, that was Adrian Peterson given that advice. So Adrian Peterson is telling people to buy penny stocks and then he's done. Okay, what Adrian is not telling you is, yes, he might have made $2 million on that one transaction. I want to know about the other 60 transaction.
that he didn't make that on. That's the thing. Everybody always tells you they're winners. They're very quick to tell you about the winners. I want to know about the losses. I've worked with a lot of NFL players back in the early part of my career, and I don't think that's something you can build your financial life off of. Going off, folks. Did you see what Steve O got me rolling in? Steve O. Today I got my man Marco approved on this 2019. He's got a baby in his arms. He's got his wife there with him.
Oh my gosh, he's got the shovel out and he's digging the hole for his life and death. Oh my gosh, he's got the shovel out and he's digging the hole for his life and death. Oh my gosh, he's digging the hole for his life and death. Oh my gosh, he's digging the hole for his life and death. Oh my gosh, he's digging the hole for his life and death.
One is a luxury automobile. So you're going to buy a luxury automobile. You got to pay cash. Two, I don't think $499 down qualified for 20%. I don't think that that would have been 20% of that. And look, when you are in the messy middle and you have life pulling you in a thousand different directions, you have a brand new baby. The thing that you probably don't want to be doing is going out and buying luxury automobiles that you're putting
very little down on. I imagine you're financing it over an extended bit of time with a huge monthly payment. I just don't believe that is what a sound financial decision maker would be making in the messy metal. Yeah, I think he's feeling good only in the moment because I think about the depreciation insurance. I think about the insurance. I think about the premium fuel. I think about the repairs on those premium vehicles. I think about the chicken nuggets and the french fries and the milk and the
Throw up in the poop. All that stuff with the baby. Oh, yeah. Boy, Steve-o, he might get you rolling, but he ain't gonna get you out of the ditch. Tell us your biggest money mistake that you've ever made. Biggest money mistake would have to be the investments in the solar panels. Oh, what'd you spend on the solar panels?
It's 36,000. On a loan. Yeah. Nothing down. Nothing down. What's your biggest money mistake? I would say buying a brand new car. Ooh, what was it? It's a 2015 grand Cherokee. Brand new Jeep Grand Cherokee. And you took out a loan for this? How big was the loan? The full amount. I think the biggest money mistake was financing a bed. Ooh, a bed.
How much do you find it? Oh, wow. Seven, eight thousand? Wow. Yeah, so what's that about? Does that make you coffee? I mean, what are they putting in that? It seemed to me that there was a common thread here around depreciable assets, whether it be solar panels or an automobile or a bed, and people financing 100% of it, meaning they have no skin in the game, no down payment. I don't love financing furniture if you can avoid it. I don't know that financing solar panels makes a ton of sense when you actually run the math, but financing an automobile is not the craziest thing in the world.
So long as you're following 23, but if you were borrowing 100% of whatever the value that asset is, and that asset goes down in value over time, you are literally setting your financial future on fire. The key ingredient to wealth creation, the first ingredient is discipline. That's the ability to live on less than you make. You know what doesn't get you closer to that goal is when you're having to leverage
All of your key consumption purchases, because in the short term, it feels like you can afford anything at $200 a month at a time. But when you start stacking those on top of each other, plus the interest payments, you quickly realize that you're paying more towards the consumption than delivering your best life. And that's why I don't I don't like anybody using debt that way. Make sure if you don't know any better,
I want you to go check out money.com slash resources. We have our financial order of operations. If you want a fast track, I've even written a book called millionaire mission that details each one of those steps. You don't have to be stuck in this life where you're lost knowing where your next dollar is going to come from, but also what you're going to do with your next dollar after you build that margin into your life to actually live on that discipline.
I'm gonna be completely honest, man. I done lost all my money trading crypto and I'm basically homeless. This meme coin get rich scheme is really not what it is and everyone's just trying to sugarcoat it. But I'll be the first to tell you that I basically feel like I got scammed. You guys might be asking, well, who scammed you bro? Who scammed you? Well, it's really you guys in the comments. I mean, you guys just keep telling me to buy all these coins.
See it in my comments. Of course, right when I bought it, I saw a big dip and my money just went down. So the fact that you guys keep commenting and I keep buying to just getting ridiculous. Peter Lynch, great mutual fund manager from yesterday year, always said, don't invest in something you don't understand. Don't buy things that you don't understand. If you're buying a meme coin or a crypto or something like that and you have no idea what it is, how it works or why it might make sense for you, you should have a red flag going on saying, maybe I should not invest in this thing. I don't understand.
at one. Thing number two, don't let other people tell you how to spend your money or how to use your resources if they are not qualified to do so. Let me go and put your mind at ease. Most folks in the social media comments are not qualified to tell you what to do with your dollars. So just because someone says, hey, buy this thing, invest in this thing, care out this strategy. It's what you need to do. They don't know you. They don't know your situation and they are not looking out for your best entry.
you know i did a crypto experiment and here's where the big red flag for me when i saw the daily volatility when this thing was moving multiple percentage points not every now and then but almost every day i was like it hit me i mean as a person who actually manages money and has built my own
very successful portfolio. I was like, if it's moving this much every day, this is closer to speculation than it is to investing. Investing shouldn't feel this way emotionally. Investing shouldn't have this much ups and downs. And investing shouldn't take you on these rides where you could yes.
Hit the boom, but there's a heck of a lot of bust out there. And that was a red flag for me. And I realized I don't want to own this train. I'm going to do investing my way where I take a little bit today to build my great, big, beautiful more by doing index funds and other things that are much more likely to tie into the success of the economy than just hoping this is the next big thing that's going to hit for me.
building towards financial success, building wealth is surprisingly simple, but it's not incredibly easy. And there are tons of voices out there, tons of people out there trying to get you to make bad financial decisions. Well, that's not what we want to do. We want to help you believe that you can do money better. That's exactly what we do at The Money Guy Show. If you want to know more, make sure you go to the website, moneyguy.com, slash resources, check out all the free resources so we can load you up.
I'm your host, Brian Preston, Mr. Bo Hanson. Money Guy Team. Out. The Money Guy Show is hosted by Brian Preston and Bo Hanson. Brian and Bo are partners with Abound Wealth Management. Abound Wealth Management is a registered investment advisory firm regulated by the Securities and Exchange Commission in according to compliance with securities laws and regulations. Abound Wealth Management does not render or offer to render personalized investment or tax advice through the Money Guy Show.
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