Financial Order of Operations Course (FOO) | Money Guy Show (2024)

FAQs

What is the hyper accumulation money guy show? ›

By the time you get to step six, it's about maxing out your employer-sponsored retirement plan, such as 403bs, 457s, and 401ks. Once you've done that, you move on to step seven. Step seven is hyper-accumulation, where you aim to reach your 25% savings goal.

The Money Guy provides an amazing yet simple framework that they call the "Financial Order of Operations" (FOO) for structuring wealth building decisions [1].

We suggest saving 20-25% of your gross income towards retirement.

The 20/3/8 car buying rule says you should put 20% down, pay off your car loan in three years (36 months), and spend no more than 8% of your pretax income on car payments. As we go into depth to determine how realistic this rule is, you may consider whether it can actually help you budget for your next car.

The strategy involves dividing your assets into three distinct "tax buckets": tax-deferred, tax-free, and after-tax. The goal is to have a diversified portfolio that allows you to control your tax situation in retirement, regardless of the tax policy or tax rates in place.

Step 8: Maximize Retirement Account Contributions

In this step, contribute as much as you possibly can to tax advantaged retirement accounts. This includes the plan you've already set up through your business, as well as traditional and/or Roth IRAs.

Student loans count as high-interest debt if the interest rate is greater than 6% in your 20s, 5% in your 30s, 4% in your 40s, and at any interest rate at 50 and beyond, and auto debt should be paid down using our guidelines (put 20% down, pay off in 3 years or less, and keep the payment below 8% of gross income; ...

Warren Edward Buffett (/ˈbʌfɪt/ BUF-it; born August 30, 1930) is an American businessman, investor, and philanthropist who currently serves as the co-founder, chairman and CEO of Berkshire Hathaway.

The Financial Order of Operations (FOO) is The Money Guy foundation for financial success!

The balance of payments (BOP), also known as the balance of international payments, is a statement of all transactions made between entities in one country and the rest of the world over a defined period, such as a quarter or a year.

What is the financial order of operations step 1? ›

Financial Order of Operations (The FOO) 1. Deductibles covered – Have enough saved to cover co-pays and deductibles (e.g., Health, Auto, & Home). This can help you from being thrown backward on your financial journey should something unexpected happen.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

After surveying people, the authors developed a formula or simple rule of thumb to determine if you're wealthy: Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This, less any inherited wealth, is what your net worth should be.

1 – Never lose money. Let's kick it off with some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money.

The Financial Management Cycle includes four phases that are essential for the overall evaluation of the financial management of any firm. The four phases are Planning, Budgeting, Managing Operations, and Annual Reporting.