1. EachPod

If You Don't Understand Bonds, You Don't Understand Money

Author
Mel H Abraham, CPA, CVA, ASA
Published
Mon 08 Sep 2025
Episode Link
None

Welcome to another eye-opening episode of the Building Your Money Machine Show! Today, I’m pulling back the curtain on a market that quietly runs the show behind the scenes—one that most people don’t truly understand: the bond market. You may have heard that bonds are “boring,” reserved for your grandma’s retirement or a dusty corner of finance. Well, I’m here to change your mind.

With over 30 years as a financial expert, I can tell you: the bond market isn’t just big—it’s the most powerful market in the world, moving more than $100 trillion and deciding everything from your mortgage rate to your retirement returns. It might not be as flashy as stocks or crypto, but it’s the boss that sets the rules you and I have to live by.

In this episode, I walk you through exactly what a bond is, how bond prices and yields play tug-of-war, and why ignoring the bond market is like letting someone else drive your money while they’re scrolling TikTok. I’ll break down how bonds ripple through your financial life—impacting your loans, your investments, your freedom number, and even your taxes.

IN TODAY’S EPISODE, I DISCUSS:

  • Why the bond market is the true thermostat of the economy
  • What a bond actually is, including the 4 must-know terms
  • The relationship between bond prices and yields
  • How the U.S. government and companies issue bonds
  • Primary vs. secondary bond markets
  • How Treasury yields impact everything
  • The interplay between bonds and stocks
  • Why understanding your “freedom number” is critical
  • Why you must take the wheel when it comes to your money

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