The Old Wealth-Building Playbook Is Broken

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Look, I’m going to be straight with you. That financial advice your parents followed? The stuff about saving 15% of your income, buying index funds, and coasting into a comfortable retirement? Yeah, it’s pretty much dead.

I know, I know. That sounds dramatic. But stick with me here because I recently sat down with Brian Mueller, a certified financial adviser with over 25 years of experience, and he broke down exactly why so many of us feel like we’re drowning financially even when we’re doing everything “right.”

Brian calls it the financial vortex, and once you understand what it is, you’ll realize why you’re not crazy for feeling like your money doesn’t go as far as it used to. Spoiler alert: it doesn’t.

The Financial Vortex Explained (And Why You’re Probably In It)

Here’s the thing about the old playbook. When our parents were buying homes, their mortgage was maybe 20% or 25% of their income. They probably put 20% down. They had breathing room in their budget for savings, emergencies, and maybe even that boat they never actually used.

Fast forward to today, and most people are spending 45% to 50% of their take-home pay just on housing. Some people are pushing 50%. And before you think I’m about to tell you it’s because everyone’s living beyond their means with fancy avocado toast and streaming subscriptions, hold up. That’s not what’s happening here.

The financial vortex is what happens when three major expenses explode at the same time while your salary basically stays flat. We’re talking about housing costs that have gone absolutely bonkers, healthcare expenses that make you want to cry when you open the bill, and childcare costs that rival a college tuition payment.

Brian pointed out something that really hit me. By 2033, Goldman Sachs predicts that 55% of people under 50 are going to be living paycheck to paycheck. Fifty-five percent! That’s not because half the country suddenly forgot how to budget. It’s because the game changed, and nobody updated the rule book.

Why Inflation Feels Way Worse Than 3%

You know what really grinds my gears? When the Federal Reserve says inflation is around 2.5% to 3%, and you’re standing in the grocery store thinking, “There’s no way a jar of peanut butter used to cost this much.”

Brian’s working on a whole episode about what he calls “the inflation lie,” and I’m here for it. Because when you factor in everything we actually spend money on, the real inflation rate feels more like 40%. I’m not making that number up. Brian mentioned paying $35 for a vodka and soda at a concert. Thirty-five dollars! For one drink!

At some point, we all hit that wall where we’re like, “Nope. I’m not paying that.” But the problem is, you can’t exactly boycott your mortgage or your kid’s healthcare.

The Big Rocks That Are Crushing Your Budget

Alright, so if the old advice doesn’t work anymore, what do we do about it? Brian laid out something he calls the new retirement formula, and it makes way more sense than the outdated stuff we’ve been force-fed.

The formula is simple: save smarter, invest better, and keep more of what you earn.

But before we get into the sexy investment strategies, we need to talk about the big rocks. These are your major expenses, and they’re where the real money gets saved or lost. I’m talking about housing, transportation, and food. Not your $5 latte.

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Thanks again for following along! Keep those Horns Up, my friend 🤘 🤘 And please share this newsletter with those you think would find value!