Latest / Success Story with Scott Clary / Lessons - The STRIP Framework for Wealth | Vivian Tu - Financial Expert

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Lessons - The STRIP Framework for Wealth | Vivian Tu - Financial Expert · Success Story with Scott Clary

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  In this lessons episode, uncover why financial stress keeps people stuck and how simple steps
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  can kickstart your wealth journey. Learn how the Strip Method simplifies personal finance
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  through savings, debt strategy, retirement planning, investing, and goal setting.
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  Learn why finding credible financial advice online is essential and learn how to calculate your own
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  FU number to build lasting financial freedom.
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  People have a hard time focusing on all the other versions of rich when they're not even
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  making enough money because they're so stressed out about paying next month's rent.
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  I mean, it's interesting why financial content does so well.
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  Because I know why it does well. People are stressed out they're not making enough money.
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  They feel like they can't afford to live cost of living increases, but even with all the financial content,
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  I feel like people aren't taking that financial content and actually implementing it into their
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  lives. I mean, for example, your first piece of content, how many followers did it get you?
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  That first piece of like 100,000 followers. So obviously there's a niche for it.
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  But when you because now you have a whole bunch of fans and I'm sure you talk to some of them
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  and some of them give feedback and I'm sure some of them have taken the advice and ran with it.
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  But there's a whole bunch that have not taken the advice and not done anything and they just consume.
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  Why do you think that is? I think comfort with the status quo and fear of change is a big one.
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  Like it's easier to be slightly uncomfortable, always feeling like you're living paycheck to paycheck.
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  Then it is to put yourself in a place of discomfort for six months to pick up a side hustle.
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  It requires you to do something new or different and people don't like change.
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  But I will challenge and say that it depends on the piece of content.
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  I think people are in my audience at least very, very willing to try something.
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  I think certain pieces of content still feel a little out of reach. So if I'm talking about,
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  these are ways that you can save on when you're buying a home.
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  Some people, that's just out of reach for some people right now and that's okay.
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  Not every piece of content has to be for every BFF. But for the simple stuff,
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  I do think people take huge advantage in their trying to implement it in their daily life.
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  I think something that people also struggle with is actually being able to discern who on the
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  internet is qualified and has the credentials to be talking about this versus who's just selling
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  snake oil because there are a lot of financial gurus out there who don't actually have any qualifications.
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  They don't have a finance background. They're just good marketers.
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  They just know how to make a hook on Instagram. Welcome to the internet.
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  Welcome to the internet. So if my content is literally slotted directly after that person,
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  they're looking at that video and then they watch mine. They may be fearful of taking action
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  on the helpful tip that I've shared because they don't know if they can trust
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  what I'm saying because maybe the person before me was unscrupulous.
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  I agree that finance education through traditional means is lacking.
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  I mean, you don't get financial education in high school and university and college the way
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  that you should. So the answer is independent content creators. But I truly do believe,
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  and this is something that I just feel. I would probably have to pull an audience to really get
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  some feedback on it. But I feel like we are in this era of people trying to just consume, consume,
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  and not take action. And I think that that's what I'm trying to actively fight against. But to
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  your point, it's how do you discern who's who's legit? Who's not? What information is credible?
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  What information is not? So when somebody's going on this finance journey, that's a great,
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  that's a great question that they would be asking, like, how do I figure out where to start?
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  How do I figure out where to start getting rich, building wealth? Who do I listen to outside of
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  outside of you? What are the first steps that I should take that aren't too risky, that at least
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  to sort of get me going in the right direction? Because there's so many concepts around wealth
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  building and making more money. Again, it could seem like drinking from the fire hose and then
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  there's a compounded problem of not being even able to trust the person that you're listening to.
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  So where does that person start if they want to get rich and be wealthy?
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  Yeah, I always tell people that if people want to get rich, they should strip. And then they're like,
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  oh, didn't realize is this kind of a podcast. But strip is an acronym. It's just kind of a really
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  easy five-step method of like how to get yourself into a really like stable place that you can really
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  start making some impacts in your life. So first and foremost, S is savings. You want to have an
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  emergency fund in your savings. I would put it into a high yield savings account. So you want three to
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  six months of living expenses set aside for this rainy day fund, this emergency fund. And this is
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  going to help prevent you from going into further financial duress in case something happens.
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  You break your leg, the wheel rolls off your car, your roof caves in, something that happens.
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  Then once you have that emergency fund set up in a high yield savings account, we're earning more
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  interest. You move on to T total debt. And the reason it's a T is because people who pay down their
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  debt will just pay it down willy nilly. And that is mathematically not the right way to do it.
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  So what you actually want to do is rank your total debt from highest to lowest interest rate,
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  make the minimum payment across everything to keep your credit score in good standing. And then
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  any additional pay down funds, you're actually going to put towards the debt with the highest interest
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  rate, typically credit cards. So this is going to help you pay your debt off faster while paying
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  less and fees. And this is the mathematically correct way to pay down debt or retirement. We talked
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  about this earlier. You got to have a plan for future you. And so I encourage people to take
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  advantage of tax benefits. Legislators write the tax code and the IRS enforces it. And
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  the way that the tax code is written incentivizes us to do things that they want us to do and
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  disincentivizes us to do things that they don't want us to do. So an incentive they want is for
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  us to save for retirement and invest for retirement because the government does not want to take care
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  of you in your old age. They want you to take care of you. So you're going to get tax benefits by
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  tapping into an employer-sponsored retirement plan like a 401k for a 3B TSP if you're in Canada
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  RRSP. So many letters and they all totally make sense, right? But also tapping into
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  things like a traditional IRA or a Roth IRA, those stand for individual retirement account.
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  You want to be able to leverage tax advantage accounts like a 529 if you want to help save
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  for your kids education. There's lots of options. But it's not enough to just open these accounts.
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  You actually have to fund it with cash and then I invest. So people always say, what's the perfect
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  investment? There's no such thing. Okay. When I worked on Wall Street hedge funds would call us
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  regularly and being like, you know, we made a couple of bad calls. We got to unwind all of our
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  trades were blowing up. If these people who have very literally billions of dollars of technology
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  and research at their fingertips can't seem to get it right. What makes you think 15 minutes on
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  Yahoo Finance is going to help you get there? You're not. What I say is invest in a diversified
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  portfolio of index funds that track the broader market. So instead of buying an entire bag of
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  almond joy candy bars, you're getting the Halloween bag, which is KitKat Twix,
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  almond joy Snickers, you know, would have you. So you're getting a little bit of everything.
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  That's going to really help diversify your portfolio. And if you're listening to this and you're
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  like, well, that was still gibberish, just utilize something called a robot visor. You sign up for
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  the account and you take a quick quiz about your money goals. So what you have, what you earn,
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  how old you are, what your family looks like, where you live, when you want to retire. Yeah,
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  yeah, yeah. And then it spits out a diversified portfolio that makes sense based on your financial
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  situation. And then the email you once or twice, I would say probably once every one year or two
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  years to retake the quiz. So then if you've made a lot more money or something has happened or
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  you got divorced risk tolerance. Correct. It'll rebalance your portfolio for you. And then
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  last but not least is P everybody's favorite plan. You have to have a plan of what you're happily ever
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  after looks like. Some people's happily ever after is I retire at 35. I live in an air stream. I
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  never wear shoes again. Not me, not me. I would rather retire at a more traditional age 60 65. But I
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  better have a vacation home. I better still be able to go on vacation. I better still be able to
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  go and travel. I better be able to take care of pickles my fat English bulldogs like heartworm
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  medication. Like I want to be able to have certain things in my life. And I don't want to have to
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  worry about money. And if that's the case, like you need to know what's that what's not going to cost
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  because retirement number one in the air stream and retirement in your vacation home look very
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  very different. So I know you have a number. So your number is 25 million. Yeah, that's my FU
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  number. That's your FU number. Okay. Yeah. Obviously that's for and you know what though I've
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  thought about this because I was again, I'm listening to the podcast that you've been on before.
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  And I was thinking about that number. And it's an FU number if you had it now because there's
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  ways you can make them money last. But when you're like 65, that's like it's an FU number then,
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  but ultimately, I mean, if you made that over years and you were taxed on it and then you
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  invest it like it's, it's, it's a lot of money. But it's still a cost of living has been to
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  increase too. Yeah. So that 25 million at 65 may afford you a very comfortable last few years
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  of your life. But I mean, you still have to understand how to invest it strategically. So you
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  don't just blow through it either because you can still F that up. I mean, people F that up all
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  the time. And the best examples that we see are athletes who get these huge sums of money
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  then they're going bankrupt by the time they're 30. So it's really easy to fuck this up if you
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  don't know what you're doing. So first of all, why is 25 million your numbers? I know that you're
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  very strategic and you've done some, them some math around why that's your number. And also,
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  how should someone else calculate their number? Like what's the, what's the mechanics? Obviously,
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  you don't know someone else's life. But what's the thought process that you went through the
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  somebody else can use? Yeah. So my FU number is 25 million dollars because 25 million dollars
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  invested earning a very conservative 4% return every single year would give me about a million bucks
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  in returns. And even after paying capital gains taxes on that, I would still be able to fund my
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  lifestyle, fund my homes, fund my travel, fund any sort of expenses. And frankly, probably still
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  be able to even help out my kid if I needed to. That's what it would take for me to have a very
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  comfortable, very comfortable average life. This does not get you to private jet. This does not
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  get you the yacht. This does not get you living in a million a year. Monaco, million a year. And then
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  if you, if you took a four, you'd still have to pay capital gains on that. So yeah, okay, so you
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  pick capital gains on that pay capital gains. So you're roughly ending up with about 850 850. And then
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  I mean, if you had a two person household and you had life three or four kids going to private
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  school, like I'm not saying three or four, are you crazy? Yeah, one to two. Don't put that
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  juju on me. I'm just saying, yeah, that money goes quick. It does. Money goes very very quick. So
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  you can have an FU number like 25 million, but you still have to have a, but that's also my baseline.
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  Yes, my baseline FU. Obviously, frankly, I haven't even really thought too much about like what's
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  my top top end of it, but like I would say a hundred million dollars, like I would not work
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  anymore. Thanks for tuning in. If you found this valuable, don't forget to hit that subscribe
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  button so you never miss an episode. And if you want to dive deeper into this conversation,
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  check out the links in the description to watch the full episode. See you in the next one.