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SFB034 Stop Acting Rich Part 2

| September 20, 2016
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Episode Summary

This episode is part two of 'Stop Acting Rich'. Please be sure to listen to episode 33 to get a full update on today's topic. In this episode, Paul covers the more analytical and numbers side of how much money you really need in order to safely retire. If you were told today that you had an $8 million dollar debt, how would you spend your money differently? There's a good chance you have not considered or even prepared properly for your future liability. So, stop acting rich today! Instead, save money the way the wealthy do.

What Was Covered

  • 02:10 - On last week's episode, Paul talked about why someone who has $20 million dollars worth of stuff, will need a net worth of $60 million dollars.
  • 03:40 - When you retire, your home will be paid off and you will no longer be paying for your children's education. Does this mean you'll need less money?
  • 07:15 - If you earn $500,000 a year, then you'll need $10 million to retire.
  • 08:20 - If you're making $200K a year now, but not saving $50K a year, then you have a cash flow/spending problem.
  • 09:50 - The biggest problem we have today is debt. Not just debt on cars/houses, but debt on our unfunded future liability we carry on our balance sheet.
  • 10:00 - What is your unfunded future liability? Paul does some math.
  • 10:15 - Do you currently have a spouse that spends more than you'd like them to spend?
  • 10:45 - Paul discusses the rule of 72.
  • 14:45 - You are in 100% control of your spending.
  • 16:45 - What do you owe your future you?
  • 19:15 - Paul shares one final story before he goes.

Tweetables

"Spend money on building a portfolio, spend money on building the capital required to one day replace your income."

"If you had an $8 million dollar debt sitting on your balance sheet right now, would that change your next spending decision?"

"People forget about this. You are in 100% control of your spending."

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