Your Financial Co-Pilot

Your Flight Plan to Financial Freedom

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This page distills key financial principles from The Money Guy Show, providing a roadmap to financial freedom. The core philosophy revolves around the concept of a Financial Order of Operations (FOO), a step-by-step guide to help you make smart financial decisions. Learn more about the FOO here.

The Aviator's Financial Checklist (FOO)

1.

Deductibles Covered

Ensure you have enough cash to cover your health insurance deductibles. This prevents debt in case of an emergency.

2.

Employer Contribution

The company contributes a fixed percentage of your compensation to your retirement plan, regardless of your personal contributions. This is an essential part of your pay.

3.

High Interest Debt

Pay off all high-interest consumer debt, such as credit cards or personal loans, as quickly as possible.

4.

Emergency Fund

Build a solid emergency fund of 3-6 months of essential expenses in a high-yield savings account.

5.

Roth IRA / HSA

Max out contributions to your Roth IRA and/or a Health Savings Account (HSA) for tax-advantaged growth and withdrawals.

6.

Max-Out Employer Plans

Once the other steps are complete, work on maxing out all of your employer-sponsored retirement plans (e.g., 401k).

7.

Hyperaccumulation (Invest 25%+)

Invest 25% or more of your gross income into taxable brokerage accounts and other investments to build wealth at a faster rate.

8.

Prepay Future Expenses

Prepay for known future expenses, such as a down payment on a house or a new car, to avoid taking on new debt.

9.

Prepay Low-Interest Debt

Finally, accelerate payments on low-interest debt, like a mortgage or student loans, to become completely debt-free.

Know Your Aviation-Specific Numbers

Every role has unique pay and benefits. Here are some key items to keep in mind for your financial planning:

  • Per Diem: This is tax-free money. Use it wisely and consider saving or investing a portion.
  • Longevity Pay: Pay increases with years of service. Factor this into your long-term plan.
  • Company Retirement Contributions & Vesting: The company contributes a fixed percentage of your pay—15% for pilots. Funds vest over time, meaning you gradually gain full ownership.
    • One (1) year of service: 25%
    • Two (2) years of service: 50%
    • Three (3) years of service: 100%
    Learn more about this in the contract under sections 28.A, 28.B, and 28.C.

I am not sponsored by or affiliated with The Money Guy Show. This guide was created to help others find a path to financial freedom by sharing valuable principles from a trusted source.

This information is for educational purposes only and is not financial advice. Consult with a qualified financial professional for personalized advice.