Back to the Basics: Wealth Creation - Part 1
episode
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
21 min
3 speakers
5 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Hey, this is Daniel. Thanks for listening to DIY Money. If you haven't already, be sure to give us a five-star review on iTunes so your friends know that they can learn from the show. Now, enjoy the show. Welcome back, ladies and gentlemen.
You're listening to another edition of DIY Money.
DIY Money. Coming up on birthday in the next couple days. So my birthday is on January 4th. Obviously, we're cutting this on January 2nd. My new year really starts on the 4th. That's when all the goals start, everything like that. The eating healthy, the working out. That starts on the 5th.
I like it.
I like it.
Yeah. Birthdays are, mine's right smack in the middle of the year. And I have always liked that because it's a, it's a kind of a middle point to say, how am I doing on the year? Yeah. So that's, that makes, that makes a ton of sense.
Do you look back during your birthday? Like, do you look back on the previous year? Like, how do you do that?
Yeah, probably not the previous year, but the previous six months. I always truncate it into a year, like a calendar year. I'm not sure why, but I just do. So my birthday is a good, like, okay, I'm eight months in, or seven full months in because it's early August. How am I doing? And it's a real good check, a good look in the mirror. So, well, pre-happy birthday.
Thank you very much. Don't do anything I would do, and definitely don't do anything I wouldn't do.
All right, let's go right into it because this is one of two of our conclusions to start our year off of Back to the Basics. And we've covered a lot of material here. We will get back to questions. So just as a housekeeping odds and end, we have not abandoned audio file questions. So if you are interested in getting in the queue for that, now's the time. Send us an audio question. If you have an iPhone or... I'm certain it's on Android somewhere. I would have no idea where it is, but voice memo. Record your question. Try to keep it 60 seconds or less. Send it to us at podcast at diymoney.org. That's podcast at diymoney.org. If we use it on the show, we'll send you a $25 Amazon gift card. It's a very simple process.
If you've got a young, inspiring mind at home that asks you a ton of questions, encourage that person to send it in. We'll have a release for the parent. But we love DIY Money Junior questions and episodes, and they are some of our most popular. And we'll send the $25 Amazon gift card to the kid. Yep. Well, to the email we have. Right. We'll let you decide where it goes. All right. We're going to round the corner here, and usually we conclude this by talking about, in general, wealth creation. And in the past, we've sort of left that wide open, and obviously we say, well, continue to listen to DIY Money because that's what primarily the podcast is about, or for the most part is about. But I think it's important, and you brought this up, which makes a ton of sense, is to talk about the various buckets that people could create wealth.
So now we're going to assume, because it's very important, we're going to assume that you're beyond the initial steps of DIY money. So you have your emergency fund, you have the bad debt, quote-unquote bad debt paid off, whether you've decided to pay your mortgage off or not, TBD, but now you're in the step of saying, I'm going to create wealth. The caveat I'm going to make for most is that you should already be doing some sort of retirement savings. Irrespective of a W-2 job, 1099, small business, I don't care. The 10-10-80 plan, I think, is wonderful. You save 10, you tithe 10, or give 10, you live on 80. That's fantastic. But something for the future. In, again, a retirement plan, it's just the most accessible.
It's often the easiest. Most people have that as an option in their employment, et cetera.
Taken right out of the paycheck.
Taken right out of the paycheck. And if you recall from the basics, unless we have this dire situation, I mean dire, It's one of the first steps in the process.
Particularly getting that match from your employer. Bingo.
So it's not, you know, we're 10 years down, we're totally out of debt, and no, oh, by the way, now we start contributing to a 401k.
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:00–4:29
2
What are the DIY Money housekeeping items and how can I submit an audio question?
4:29–8:28
3
When should you start thinking about wealth creation after completing basic money steps?
8:28–11:07
4
Why should retirement savings continue while you pursue other wealth strategies?
11:07–13:55
5
What are the three primary paths to build wealth on your own?
13:55–21:12