You may have seen mortgage tips posted throughout the forums or in the BiggerPockets Money Facebook Group, but rarely do you get preapproval tips straight from a lender themselves. As the housing market stays hot and interest rates continue to rise, it may seem harder and harder to get approved for the amount, or the interest rate, that you want. Now, instead of guessing what you can do to increase your financeability, you can get answers directly from the source!

Joining us today is Jon Lallande, former mortgage lender, now real estate investor. Jon has helped close tens of millions of dollars in mortgages and has funded homes across the US. He’s on today to help us separate the wheat from the lending chaff so you can have a smoother preapproval process. Jon touches on the different types of lenders, how to increase your credit score before you apply for a loan, getting around lender “overlays”, and how tax deductions can be dangerous for self-employed professionals.

No matter your qualification query, Jon probably has an answer to it. Listening to this episode may just give you the steps you need to finally lock down that first deal, primary residence, or next investment property!

In This Episode We Cover

The easiest way to make yourself “attractive” to a lender 

Lender overlays and how to get around them so you can get preapproved

The easiest way to raise your credit score so you can get the best loan possible

The upside of PMI (private mortgage insurance) and how to purchase properties with low money down

Why many investors put themselves in mortgage fraud territory and how you can stay out of it

How to get a mortgage as a self-employed individual and when NOT to take deductions

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Finance Friday: Building Your Financial Runway Even with Irregular Income w/ Eric Dunn

Finance Friday: Should You Pay Off Your Mortgage Early or Invest?

Ginnie Mae Website

Credit Karma

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Almost every age group wants to know how to retire in ten years. Whether you’re in your teens, your mid-thirties, or your mid-fifties, retirement can seem like an eternity away. Those who retire early and find financial freedom tend to do so through a combination of smart investing, early saving, and a tenacity for budgeting (without giving up everything they love). But what if you don’t have time on your side? What if you’re still paying off debt? Is it still possible to retire?

Thankfully for today’s guest Rik, and all you listeners at home, we can safely say that retirement is in reach, even if you feel like you’re a little off track. Rik has three degrees and as a result, is strapped with some moderate student debt. He wants to retire in five to ten years and realizes that it will take some work to get him in that position. Thankfully, he has some hands-on real estate investing experience—owning a duplex and performing a live in flip on his primary residence.

Rik is more than willing to get his hands dirty in his pursuit of early retirement, whether that means doing remodels himself, limiting his booze budget, or simply living a little leaner. With some smart investments under his belt, he’s been able to set himself up in a good position to take on more projects, have smarter debt, and keep more cash. But, Rik will need to take care of a few things first before he can continue building this retirement runway that’s already underway.

In This Episode We Cover

Student loan debt forgiveness and how to pay off your debt in the smartest way possible

House hacking, live in flipping, and turning your home into a cash-flowing machine or equity check

Building a strong cash position/safety reserve and having the funds to invest faster

HELOCs (home equity lines of credit) and using them to pay off renovations

Whether to rent or sell a property in these high-interest times

Building a retirement nest egg that allows you to travel, take time off of work, and creatively invest

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

MintMobile.com

Amazon Prime

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

Rookie Reply: Cash Out Refinances vs HELOCs | Which Should You Use?

Finance Friday: How to Avoid the “Middle Class Trap” When Building Wealth

Finance Friday: How Do I Get Out Of This Cash Flow Crisis?

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Asking for a prenup (prenuptial agreement) can be an exceedingly scary ask. To your partner, a prenup may seem like a way of telling them that you’re planning for a future divorce. But, in reality, it could be the thing that secretly saves your marriage. The everyday American knows very little about the prenuptial agreement and has gotten most of their information from movies, reality TV shows, and hearsay from friends and relatives. We wanted to know the truth about prenups, so we invited attorney Aaron Thomas on the podcast.

Aaron Thomas has a wide range of experience in family law, divorce law, and anything that comes from legally joining (or separating) a couple. He knows how difficult divorce cases can be and saw the same mistakes repeated by couples. The lack of communication over finances, minimal planning (if any at all), and wishful thinking led to more and more couples seeking separation shortly after marriage.

Now, Aaron and his team work with couples to form strong prenuptial and postnuptial agreements so that they have a rock-solid financial foundation to stand on when dealing with the daily joys and struggles of marriage. Aaron argues that the prenup may be the most important step in mitigating a divorce and that the protection of a prenup goes far beyond wealth. If you never thought about getting a prenup or postnup before, you definitely will after this episode!

In This Episode We Cover

Prenuptial and postnuptial agreements explained and what they protect

Added stipulations in a prenup that most couples don’t know about

The optimal way to combine finances as a couple and how to split uneven paychecks

How to bring up a prenup or postnup to a partner who’s feeling averse to one

The cost of divorce vs. a prenup and why you DON’T want to leave a legal separation up to state laws

Which couples shouldn’t look into signing a prenuptial or postnuptial agreement

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

ATL Aaron Thomas Law

BiggerPockets Money Podcast 24: Getting Financially “Naked” with Your Significant Other — With Erin Lowry

Prenups.com

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You’ve heard of middle-class money traps before. Like spending your whole paycheck on rent, not paying yourself first, and the sneaky seduction of obsessive eating out. Today, we’re talking about a far less known type of middle-class trap, the type that keeps your wealth growing but limits the amount of “freedom” you feel in the process. Oftentimes, savers can find themselves in a position with a big cash surplus but hold tight to it to feel “safe” instead of feeling flexible.

Today’s guest, April, falls into this category. She’s done a phenomenal job at building a millionaire life, keeping large cash savings, and diligently investing in retirement accounts. She’s in a favorable position, but it’s not the position she wants to stay in. April wants to feel a true sense of financial flexibility, with the option to leave her job or decrease the amount of time she spends working. But, to do this, she’ll have to confront her limited “cash scarcity” mindset and chase other investing options.

Scott and Mindy guide April on exactly how to do this, walking through various types of investment options that she (and you at home) can use to maximize a lifestyle for freedom, not just wealth. Even a financial powerhouse like Mindy struggles with these same issues, and you might too once you hit millionaire status!

In This Episode We Cover

Whether or not you’re overinvesting in retirement accounts (and how to find out if you are)

Converting from a scarcity mindset to money abundant mindset to truly take worthwhile risks

Investing in passive income streams like rental properties, syndications, and dividend stocks

How much to keep in your cash position and when to start investing your excess capital

HELOCs (home equity lines of credit) and how they can combat a low-cash position

Whether or not to pay off your mortgage early (or your car loan!)

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

BiggerPockets Money Podcast 243: Ramit Sethi's Money Advice for Couples: Live a Rich Life, Together

BiggerPockets Money Podcast 260: Finance Friday: How to Hit $10M Net Worth in 10 Years (Or Less)

BiggerPockets Money Podcast 18: Accessing Retirement Funds Before Age 59½ with The Mad Fientist

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Budget meals, cheap eats, and deliciously discounted recipes are all in this episode of the BiggerPockets Money Podcast. As many of you financial freedom chasers know, one of the biggest monthly expenses on your budget tends to be food costs. Whether that be going out or grocery shopping to feed yourself, your spouse, your kids, and anyone else in your family— eating well isn’t cheap…or so most people think.

Beth Moncel is here to tell you that the preconceived notion of good food = expensive food, isn’t exactly right. Beth started her blog, Budget Bytes, over a decade ago during the great recession, when many families struggled to put food on the table. With a degree in nutrition, Beth knew that she could scientifically design recipes that not only filled up her family but helped her do so on a budget.

If you’re constantly going over your food budget, this is the episode to listen to. Beth gives a masterclass on food budget savers vs. sinkers, pantry staples and go-to recipes, meal planning, eating out, and whether or not you should shop on an empty stomach. Prepare to upgrade your dinner time while keeping more cash in your pocket!

In This Episode We Cover

Common mistakes budgeters make when trying to plan weekly meals 

The biggest budget busters you’ll find in your local grocery store and what to buy instead

Beth’s go-to recipes that also act as pantry clean-out meals for less food waste

Meal planning and how to start with simple, filling recipes you won’t get tired of

Shopping without coupons and why the best ingredients are often the cheapest

Calculating the exact cost of your meals and tweaking recipes for frugal shoppers

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

BiggerPockets Money Podcast 251 with Preston Cooper

Flipp.com Website

BudgetBytes.com

Connect with David

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Stock market crashes aren’t common, but when they happen, they often catch you by surprise. Thankfully, we’re not in the middle of a stock market crash, but this current correction or “dip” we’re riding has got some early retirement and FIRE chasers feeling a little anxious. Carl and Mindy Jensen, real estate and index fund investors, have seen a twenty-five percent drop in their portfolio just over the past six months alone. What effect does that have on their future financial plans?

Welcome back to this month’s episode of Carl and Mindy’s Spending Summary, where we finally get to see an under budget month! Thanks to some family frugality, Carl and Mindy were able to shop pretty light this April, even while going over budget on some essentials like groceries and medical expenses. This may be the last under budget month for a bit as some upcoming trips may prop up their expenses as we roll into summer.

Carl and Mindy have also been keeping an eye on the stock market and how its performance is affecting their portfolio and future retirement plans. When Carl decided to step away from work five years ago, he had the tailwinds of a strong stock market at his back. But, with recent drops in stock valuation, it begs the question: would Carl still be able to retire early if the market conditions mirrored today?

In This Episode We Cover

The budgeting and expense tracking “slog” that helps you spend less and keep more 

Expensive summer trips and how to account for future travel in your monthly budget

The Nasdaq’s rough month and what to do when stock indexes start to fall

The 4% rule and how rough market conditions could hurt your early retirement plans

Whether or not you should still retire during a market crash/correction 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Check Out Mindy’s 2022 Live Spending Tracker and Budget

Hear Our Interview with 4% Rule Creator, Bill Bengen

Michael Kitces’ Interview on FIRE and the 4% Rule

The “Mile High FI” Podcast

1,500 Days to Freedom

Connect with Carl on BiggerPockets

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The idea of college comes with a lot of questions—but there is one question that isn't usually asked: is college worth the cost? Most would say yes, but the honest answer is sometimes. Today’s guest, Robert Farrington, the College Investor, answers college questions in a detailed manner to help you make profitable decisions on your higher education choices.

Robert goes over how to look at college as a business decision rather than a necessity. A deciding factor in any college decision should be profitability. Is going to college going to make you more valuable in your field? Will the salary you make post-grad outweigh the student loans you took out? What financial resources are available to you to minimize debt and out-of-pocket expenses? How can you leave college debt-free? 

When you start asking the right questions, each decision gets easier. And in today’s episode, Robert gives you the right questions to ask. He also goes over different ways to pay for college, including FAFSA, grants, and scholarships, and how each of them work. College requires a lot of informed choices, and this episode contains the knowledge to equip you to make those choices. 

In This Episode We Cover

Looking at college as a business decision and determining whether a college education is financially worth it for you (or your child) 

How to finance college through loans, grants, financial aid, and scholarships 

529 plans explained and why it's an ideal way to save for college 

Saving yourself by using the “Yes Model” to save for college 

FAFSA vs. scholarships and how to apply for both 

Cutting your college expenses in half with government-sponsored programs 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Check Out Mindy’s 2022 Live Spending Tracker and Budget

Here's What I Wish Someone Told Me Before I Racked Up $180,000 In Student Loan Debt

How To Pay For College

How To Save For College

Ultimate Guide To Military And VA Education Benefits

Taxable Scholarships

Check the full show notes here: https://www.biggerpockets.com/blog/money-297

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Everyone has experienced negative cash flow. If you have a troublesome rental property, you may experience negative cash flow. If you have a low income but an appetite for expensive eateries, you may also experience negative cash flow. But, more common than most, if you’re in the early stages of building your small business, negative cash flow may be a harsh but hard to mitigate reality. 

Chris is feeling the sting of sinking purse strings every month. At the start of 2020, Chris left his old job as an engineer to start working for himself. He hired a couple of employees and started taking on more and more work. But, he’s spending too much time training his junior engineers and not enough time locking down high-value contracts, leaving him in the red every month. Surprisingly, more business owners face this problem than you would think. 

Scott puts on his CEO hat to dive deep into the finances of Chris’ business and gives some challenging, yet reasonable, advice on how he can immediately improve his financial situation. With suggestions from both Mindy and Scott, Chris may have a better picture of how he can go from cash flow negative to very comfortable with highly positive cash flow in the near future. You may not be in Chris’ position now, but if you ever plan on starting a business, or have already, this episode is a MUST. 

In This Episode We Cover

Cash savings and why it’s always important to keep a strong safety reserve (especially as a business owner) 

How to break down your negative cash flow situation to find the most costly expenses 

Starting a business vs. continuing to work at a job and why entrepreneurs should be prepared for risk (and loss)

How to establish whether or not an employee truly brings value to your company 

KPIs, goals, and getting on the same page with your team and employees

Executive assistants and why high per-hour earners may need them the most 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Check Out Mindy’s 2022 Live Spending Tracker and Budget

6 Steps to Improve Your Financial Situation

15 Things Every Newbie Needs to Know About Starting a Business

How to Know When to Hire Your First Employee

10 Challenges to Seriously Consider BEFORE Quitting Your Day Job

Check the full show notes here: https://www.biggerpockets.com/blog/money-296

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Early retirement was a goal for today’s guest, Antoinette Munroe, the moment she started making money. Her money journey started in second grade when she sold her Halloween candy for extra cash. By high school, she graduated to selling a wide variety of different things and even started her own distribution network with her cousins at their respective schools. 

By the time she got to college, her main focus was staying out of trouble, avoiding debt and saving. It wasn’t until her last semester of grad school that she had to take out loans. After graduation, her priorities shifted, and she got a job to pay off her debt. Starting with her first check at her new job, she laid out her budget ABCs. Her ABCs follow a simple principle; automation, balance, and consistency. And after two years, she paid off her $27,000 debt! 

In 2015 she decided to start looking for a home, and by the end of 2015, she purchased one. She did a complete rehab on the house while also adding an addition in hopes of getting rid of her expenses to achieve her ultimate goal of not having to work. She put the finished addition on Airbnb, and it now cash flows and pays her expenses. After she realizing the power of real estate investing to build net worth and generate wealth, she did this three more times and now owns four cash-flowing properties. She is now retired and lives the free life of leisure she always envisioned for herself. 

In This Episode We Cover

The importance of saving money and the freedom that comes with it 

How to make an efficient and realistic budget & how to stick with it 

The Budgeting ABCs & how to simplify your budget (and your life!)

Creative financing and using it to buy deals when you don’t have the cash 

How to create and maintain a cash-flowing asset 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Check the full show notes here: https://www.biggerpockets.com/blog/money-295

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Index funds and rental properties are at opposite ends of the investing spectrum. On one side, you have highly diversified, almost entirely passive index funds. On the other, you have cash-flowing, yet far more hands-on, rental properties. Both of these beloved types of investments belong in (almost) every investor's portfolio, but how much should you have of one or the other?

Today’s guest Cecilia has built a strong net worth while keeping her income high and expenses low. She bought at the bottom of the market in Southern California, so while home prices rise all around her, she’s sitting comfortably with her rock-bottom mortgage payment. Thanks to all the housing expense-related savings, Cecilia has been able to dump a lot of her extra cash into the stock market. But, she’s longing for a more travel-focused life, where she can take sabbaticals in any corner of the world she chooses.

Part of her plan to wealth-gaining greatness is buying a short-term rental in a city she loves, so she can still vacation on the cheap. In order to do this though, she may need to sell off some of her investments or swap her strategy entirely for cash-flowing rental properties in cheaper parts of the United States. Which path will set Cecilia on a fast track to FI?

In This Episode We Cover

How much to have in your safety reserves and what to do when you have too much cash

Index funds vs. rental properties and when to focus on which asset 

Long-term rentals vs. short-term rentals and the cash flow that comes from both

Building the perfect investment plan that will coast you to the life you love

Automating your business and spending less time on repeatable tasks 

Whether or not early mortgage payoff is a good idea in low-interest times 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Check the full show notes here: https://www.biggerpockets.com/blog/money-294

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A master’s degree shows quite simply that you’re a master (at least to some extent) in a certain subject. For decades, getting a master’s degree has been seen as a financially savvy move to open you up to higher pay, better job opportunities, and golden networking connections. But times have changed, and as more students see college as an inferior option to working, it begs the question: is a graduate degree worth the price?

You can’t know the answer unless you compile tens of thousands of pieces of data. Thankfully, we didn’t have to do that, we just invited Preston Cooper on the show to explain the research he and his team at FREOPP did. You may recognize Preston from his previous episode on the BiggerPockets Money Podcast where he mapped out which undergraduate degrees were worth it. Now, he’s back to show which master’s degrees have the highest (and lowest) ROI.

You’ll hear Preston answer questions like when is the right time to go back to school, which master’s degrees are fatal for financial freedom, and how students should go about choosing a degree or a combination of degrees. So, whether you’re pondering going back to school to get a degree in underwater basket weaving, horse training, or law, Preston has the data to help you make that decision! 

In This Episode We Cover

Why different schools can have dramatically different degree ROIs

The best (and worst) master’s degrees to pursue 

How degree combinations can help you make more money in a related career 

When is the right time to pursue a graduate degree (after college or after working)?

The common misconception about MBAs and why most graduate business degrees aren’t worth the cost

The future cost of college tuition as admission rates drop and inflation continues to rise 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets 

Hear Our Previous Interview with Preston on Episode 251

Check Out Preston’s Grad Degree and Bachelor Degree Study:

More FREOPP Higher Education Resources 

FREOPP

Is A Master’s Degree Worth The Pay Raise?

Connect with Dave on BiggerPockets

Check the full show notes here: https://www.biggerpockets.com/blog/money-293

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Financial independence is not a new concept to Carl and Mindy Jensen. For as long as they’ve been together, Carl and Mindy have been open and upfront about their financial situations. When they learned about the FIRE movement, they knew they had an all-time goal to hit. Fortunately for them, they hit it earlier than they needed, but has their current spending forced them to recalculate what it takes to hit financial freedom?

Welcome back to Carl and Mindy's Spending Summary, or as we’re naming it this month, March Money Madness. Carl and Mindy had a few big-ticket items on this month’s expense tracker, namely things like a lovely trip to Seattle and a brand new couch (Mindy bought something new!?). As the months fly by, Mindy has noticed an “over budget” trend, forcing her to either recalculate her FI number or get back into budget mode.

If you’ve gone over budget like Mindy this month, don’t fret! Tracking your expenses and keeping up to date on your budget will still help you achieve the goals you’ve set for yourself. Just be extra mindful in April! 

In This Episode We Cover

Frugal vacations vs. relaxing retreats and how to plan for added travel spending

Gas prices, utility bills, and using solar to lower your cost of living 

The benefits of budgeting and how expense tracking keeps you frugal

Having “money respect” for your partner when sharing finances 

Accounting for big “one-time” purchases like furniture or trips 

How to save money on next month’s grocery bill (look in your pantry!) 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Check the full show notes here: https://www.biggerpockets.com/blog/money-292

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

eBay flipping isn’t something new. You’ve probably bought something on eBay that was sold by a reseller. Maybe a type of makeup you liked got discontinued. Maybe your favorite pair of jeans from a nationwide chain suddenly disappeared. For eBay resellers like today's guest, Tom Brickman (The Frugal Gay), it’s all about finding the products that people love but can’t get a hold of anymore.

Tom is a master of frugality. Raised by a real estate investor, he knew what cash flow could do to a nine-to-five worker's life. So, at age twenty-one, Tom cashed in some company stock to buy his first multifamily. He inadvertently house hacked and was living in his own place for a whopping $138 per month! From there, he moved from his native Ohio to Texas where he got a full-time job, built his eBay flipping business, and never stopped reinvesting into rentals.

As a side-hustle addict, Tom shares numerous stories about how he made (and lost) large sums of money by reselling on eBay. He even bought an entire house on eBay at auction, which came with bullet holes included. Talk about a deal! Now, retired well before sixty-five, Tom lives a life he loves with his partner, thanks to financial frugality! 

In This Episode We Cover

Why frugality at a young age can compound into massive wealth-building benefits 

ESPP and reinvesting your paycheck so you can use investments to buy cash flow

What makes a great eBay flipping product and how to find the best deals around 

Commercial real estate investing and rehabbing properties for enormous equity gains 

Buying homes at auction online and why you shouldn’t solely trust the zip code a house is in

Paying off credit card debt quickly through hard work and smart money management 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

5 Frugality Myths Americans Believe That Would Make Ben Franklin Cry

A Beginners Guide to Hack Your Housing and Live for Free

How to Pay Down Bad Debt—Fast!

Check the full show notes here: https://www.biggerpockets.com/blog/money-291

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Renting vs. buying a home, debt payoff, and the best investments of 2022 are just a few of the topics discussed in this week’s Finance FAQs. That’s right, we’re here with a new segment where Scott and Mindy take your questions directly from the BiggerPockets Money Facebook group and give answers so you can make smarter investing, saving, and life-changing decisions.

In this episode, we get into questions from a range of different financial situations. We have questions about debt payoff schedules, whether to sell stocks and invest in real estate, why “safe” investing may not be smart investing, and what to do when three-quarters of a million dollars are given to you. Scott and Mindy not only answer these questions the best they can, but they also give the “why” behind the financial decision so you can be better equipped when situations like this come up in your own life!

If you want to ask a question or give us feedback about this new format, you can do so on the BiggerPockets Money Facebook Group or leave a comment on the BiggerPockets Money YouTube channel. We’ll try and round up the most commonly asked questions so Scott and Mindy can keep the wealth-building wisdom coming! 

In This Episode We Cover

The safest investment vehicle in 2022 (and why safest doesn’t always mean best)

Whether to pay off student loans or invest in retirement and real estate 

Which debt to pay off first so you can coast to debt-free freedom

Renting vs. buying in today’s hot housing market and how to decide for yourself 

Funding home renovation projects (even when contractor costs are high!) 

House hacking and using it to lower your expenses, grow net worth, and build financial runway 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Follow Along Mindy’s Live Budget Tracking

BiggerPockets Money Podcast 35 with Craig Curelop (House Hacking)

BiggerPockets Money Podcast 267 with Robert Farrington (Student Loans)

Does It Make More Sense to Rent or Buy in Today’s Real Estate Market?

A Beginners Guide to Hack Your Housing and Live for Free

Pay Off Debt or Invest?

Check the full show notes here: https://www.biggerpockets.com/blog/money-290

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Real estate and early retirement go hand in hand. Most people think that it’ll take years (or decades) to build up enough cash flow to simply break even on your monthly expenses (lean FI). Those people probably aren’t thinking as big as today’s guest, Hugh Carnahan, who retired in only three years thanks to speed, diligence, and a courageous amount of risk-taking.

You’d probably assume that to retire in three years, Hugh had to be a very financially adept person. Well, you’d be 100% wrong! Hugh struggled for years with his finances and committed almost every cash flow cardinal sin in the book. He made great income, saved almost none of it, then saved way too much of it, and thought that his path to financial freedom was through getting solar panels on his house, NOT buying houses.

When a local business owner set him straight, he consumed as much real estate investing content as he could. He listened to the BiggerPockets Real Estate Podcast religiously and after 386 episodes, decided he should invest in real estate. So Hugh went and bought a nice single-family home, right? Nope. He did something much different—and he’s financially free because of it.

In This Episode We Cover

How to NOT practice the “pay yourself first” principle of investing and saving 

Lifestyle creep and how it can eat away at your wealth, even as a high-earner 

ESPP programs and the benefits of getting discounted company stock

The BRRRR strategy and using it to force equity on your rental properties

Commercial and portfolio loans, plus how they differ from residential mortgages 

How to leverage cash-flowing real estate to hit financial freedom (fast!) 

And So Much More!

Links from the Show

Follow Along with Mindy’s 2022 Budget

Make Your Own Free Mobile Expense Tracking App in 30 Minutes

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Check the full show notes here: https://www.biggerpockets.com/blog/money-289

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Passive income is a must, especially if you’re trading your life in America to start living in Portugal. Why Portugal? Besides the climate, coastline, and comfortable cost of living, Portugal allows today’s guest, Brandy, to live abroad with a passive income visa. Brandy already works remotely, but will be giving up a significant amount of her income once she makes the move.

Brandy has multiple streams of income—her contract work, her eBay business, her rental portfolio, and her husband's job. In total, this comes out to a handsome $300k per year, and that’s on top of the million dollars worth of equity that sits between her vacation rentals and her primary residence. But what’s the point of so much equity if you can’t use it? This is the main topic of today’s discussion!

Brandy is wondering what will make the most sense for her life abroad—keeping the rental properties or selling and investing in stocks? In order to offer suggestions, Scott and Mindy take a look at Brandy’s entire financial picture, where she stands in terms of retirement, how high her expenses are, and what she can do before her journey to start on the best financial foot possible. 

In This Episode We Cover

Building wealth after bankruptcy, failed businesses, and financial mistakes 

Quitting corporate and coming back in a more flexible, entrepreneurial role

Short-term rental investing and the big profits (and costs) that come with it

What to do if you have too much home equity as part of your net worth?

Backdoor Roth IRAs and retirement investing for self-employed individuals 

Calculating rental property profits and pitting them against other investments 

And So Much More!

Links from the Show:

BiggerPockets Money Facebook Group

BiggerPockets Forums

How I Used Real Estate to Pay for My Newborn Daughter’s College Education

Backdoor Roths, Mega Backdoor Roths, and Roth Conversion Ladders

Equity Rich and Cash Poor?

Calculate Potential Airbnb Earnings on Your Short-Term Rental

How I Live Overseas & Still Manage My U.S. Rentals

Check the full show notes here: https://www.biggerpockets.com/blog/money-288

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Do you know how to ask for a raise? If you’re like most people, you probably think that we’re asking a rhetorical question. If you think it’s as easy as simply walking up to your boss, asking for more money, and leaving, you probably haven’t ever asked for a raise before. Behind every pay raise request is a clammy-handed employee, hoping that they’ve done well enough to justify that salary bump. Maybe you’re nervous to talk to your boss, maybe you feel unprepared, or maybe you just find it hard to talk about money.

On today’s show, Kassandra Dasent, program manager and wealth advocate, touches on how every employee can prepare to get the raise they deserve. Despite what most people think, you should NOT prepare for your salary review days before it happens. Kassandra has a simple timeline that allows employees to maximize their raise potential throughout the year. So, when it finally comes time to talk numbers, most of the discussion is already done.

This type of strategy has not only helped Kassandra but numerous listeners of the BiggerPockets Money Podcast. But, what if you can’t get a raise? What if your boss says no? What if there’s no budget left for you at the end of the day? Don’t fret, Kassandra lays out the exit strategies you should plan for when career hiccups happen (which they inevitably will). 

In This Episode We Cover

Building your “success folder” and using it as your greatest tool in a salary negotiation 

Taking initiative on pay raises and not letting your boss control your career

Mitigating the fear of talking about money and using your goals to ask for a raise with confidence 

How job-hopping really looks to employers and how it will dictate your career path

Strategizing your raise and negotiating for more than just money 

How often you should update your resume (even if you’ve been at the same company)

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-287

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It's not uncommon to have irregular income as a business owner or self-employed individual. But with different amounts of money coming in every month, how can you budget, invest, or plan? Some months you’ll make a killing, while other months may have huge burn rates. How do you gain financial clarity when running multiple businesses with multiple income streams? What about becoming debt-free? Is it possible with such inconsistent income? 

This is how Eric Dunn has been feeling lately. After paying off a significant sum of debt, Eric has seen his income slowly rise and needs help ironing out his finances before he can invest in real estate. Eric has numerous businesses that haven’t been given the accounting love they deserve. Not only that, Eric has been trying to get his safety reserve up to hold himself over during the lean months of self-employment.

Mindy and Scott work with Eric to build a financial framework that allows him to scale simply and with minimal effort. They also talk through self-employment tax, financial planning, safety reserves, renting vs. buying real estate, and more. If you’re a regular listener, you probably have more than one stream of income (or will in the future) making this advice worth its weight in gold so you don’t make some of the mistakes Eric is trying to avoid! 

In This Episode We Cover

Paying off consumer debt and using it to propel forward your financial position

Separating business and personal expenses so tax time is headache-free 

Financial planning and analysis, plus using it to model and predict future income

Self-employment taxes and quarterly tax penalties that you can avoid as an entrepreneur 

Whether to rent or buy a home in today’s hot housing market (and strategies for both)

Why your emergency fund is meant to be spent on the right things 

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-286

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

When most people think of JL Collins, they think of smart stock and index fund investing. In his classic, The Simple Path to Wealth, JL lays out the foundational path that investors can follow to secure financial freedom simply, easily, and without a ton of stress. So it may come to many FI chasers’ surprise that JL has written a new book on real estate investing, and not index funds, the stock market, or our current state of high inflation.

In, How I Lost Money in Real Estate Before It Was Fashionable, JL lays out, quite candidly, how not to invest in real estate. And before you get mad about that type of advice on a BiggerPockets Podcast, please note that JL isn’t saying to NOT invest in real estate, but to invest in real estate in a smarter way than he did. 

JL is the first to admit that real estate is a phenomenal way to build wealth, create passive income, and retire early. But, if you haven’t fulfilled your 250+ hours of real estate investing education, you probably shouldn’t be purchasing income properties. In today’s show, you’ll hear JL explicitly list out all the mistakes he made when investing, and how you can mitigate these risks and come out profitable instead! 

In This Episode We Cover

“Stagflation” and how 2022 is looking more and more like 1979’s burdensome economy 

How following the herd mentality to buy real estate may cost you time and money

The biggest home renovation mistakes and how to manage contractors correctly 

Staying cautious when buying in a hot housing market and making an offer based on the fundamentals of real estate investing 

Capital gains taxes and preparing for depreciation recapture when selling a property 

The biggest real estate mistakes rookie investors can avoid when getting started 

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-285

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Travel budgeting, sky-high gas prices, and “free” utilities are coming up in this month’s episode of Carl and Mindy’s Spending Summary. Like many Americans, Carl and Mindy didn’t have the easiest time sticking to their March budget. With rising food, gas, and utility prices, it may seem that your budget is squeezing you more and more as the months go on.

This month, Carl and Mindy touch on their biggest budget busters and wins, plus why budgets are meant to be adjusted when life permits. Carl and Mindy have been publicly tracking their budget and have found it to be a little trickier than they originally thought. That being said, both of them agree that if you have the financial means to do something you love, it’s probably worth the extra money for a once-in-a-lifetime experience.

If you’ve felt strained while expense tracking and budgeting throughout the start of 2022, just know that two of the most respected voices in the financial space also stumble from time to time. If you make a mistake, overspend, or forget to track your expenses, get back on track, hit your goals, and keep chasing financial freedom!

In This Episode We Cover

What happens when a big expense bursts your budget early 

Optimizing your budget so you have breathing room when prices go up

Offsetting your electricity bill with solar and siphoning off some free natural gas 

Downsizing your costs and reviewing utility bills so you only spend on what you need

Travel budgeting and keeping extra money to build life-long memories 

Conferences where you can find Carl and Mindy in 2022!

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-284

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Multiple streams of income are a must if you’re trying to hit financial independence, retire early, and have the luxury of time brought back into your life. While most people simply rely on one stream of income, their W2, others want more than one leg to stand on when it comes to their financial wellbeing. How would you feel if every day you had eight (or more) income streams flowing into your bank account?

Tiffany Grant from Money Talk with Tiff spent over a decade building the income streams that would eventually set her free from the golden handcuffs of corporate life. But, that road wasn’t made easy for her. Tiffany unexpectedly became a teen mom, forcing her to pivot her journey from aspiring chef to community college business student. Thankfully, her natural knack for anything related to money allowed her to advance quickly through college and later the corporate world.

She was making good money, she enjoyed her job, and she was saving almost all of her income. Tiffany knew that her real dream was to own her own business, grow her wealth, and build the life she dreamt of. So, thanks to her smart money management, Tiffany was able to leave corporate, build over eight streams of income with one business, and regain control of her time. If you’re looking to do the same, then definitely don’t skip out on what Tiffany teaches in today’s episode. 

In This Episode We Cover

Building credit at an early age and disputing false claims on your credit report

Fighting income/lifestyle creep as soon you begin to make more income

Quitting corporate life and having the emergency reserves to support yourself

Strategizing your current position so you can make more and work less 

Building multiple income streams from a single business and how anyone can do it

Investing in yourself and doing whatever it takes to stay on the path to financial independence 

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-283

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Passive income is the name of the game when it comes to real estate investing. While equity can help you build wealth, passive income is what can get you on the road to financial independence. But what if you got a late start in your investing career? With so many millionaire twenty-or-something-year-olds on the internet, it seems like you have to start investing at age eighteen to hit financial freedom.

This couldn’t be more wrong. Even if you feel like you’re a late bloomer when it comes to investing, you’re probably only a few years away from hitting FI—if you make the right decisions. This is the quandary that today’s guest, Nicole, finds herself in. Nicole has recently gone through a divorce and lost a good chunk of her net worth thanks to it. But, she’s poised on investing in real estate so she can hit financial independence sooner rather than later.

Thanks to her service in the military, Nicole has access to the ever-so-helpful VA loan, allowing her to purchase homes with little (or no) down payment. She also has a military pension that will kick in soon, allowing her to mitigate her cost of living even more. So, does Nicole have enough time to build her rental empire and enjoy the Floridian beaches on her time off?

In This Episode We Cover

Why it’s never too late to start investing for your future 

Using VA loans to purchase house hack properties with little to no money down

Short-term rentals, medium-term rentals, and other rental property strategies 

Generating more income through side hustles, job-hopping, and more

The 2022 housing market and the risks/benefits of buying in today’s hectic atmosphere 

Whether or not to invest in retirement accounts when your main goal is cash flow

And So Much More!

Check the full show notes here: https://www.biggerpockets.com/blog/money-282

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Inflation can be a detriment to any early retirement plan. At first, you may think you only need a certain amount of money to retire, and maybe you’re adjusting for inflation when you do these calculations. But what happens when inflation runs more than triple the average or crosses into double-digit numbers. How does your investment strategy change? How does your “dream retirement” come true when it costs ten percent more than you originally accounted for?

These are all questions that average Americans are asking themselves: when can I retire? Can I retire? How can I afford food or gas or pay my bills? Although we can’t solely blame high inflation on the Federal Reserve, we can see how their policies lead to the situation we’re in now. Someone who stood up against the policies of quantitative easing and massive stimulus packages, is former president of the Federal Reserve Bank of Kansas City, Tom Hoenig. 

Tom was in favor of quantitative easing back at the start of the great recession, but as this power to pump more money into the economy started to get abused, he rallied against the choice of the fed. Today, Mindy and Scott use this episode to ask Tom the hard-hitting questions that average investors want answered so they can make the best financial moves possible while still building wealth. 

In This Episode We Cover

The rampant inflation of the 1980s and how it affects Fed policy to this day

Quantitative easing explained and how it artificially inflates asset prices

How asset values and price inflation go hand in hand 

The goal of the Federal Reserve and how many of their policies have backfired 

Whether or not the 4% rule still stands true in an inflationary environment 

What a “good” unemployment rate looks like and how it maps the health of the economy

How investors can prepare to take advantage of times of economic uncertainty and high inflation 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Apply to Be a Guest on The Money Show

Podcast Talent Search!

What Every Investor Should Understand About Inflation

How the Unemployment Rate Affects Us All (Yes, Even the Employed)

The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed

Tom Hoenig on Wikipedia

Check the full show notes here: https://biggerpockets.com/blog/money-281

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Investing in real estate is a proven way to build wealth, produce more cash flow, and retire early. But, not everyone is cut out to do every type of real estate investing. Some strategies take dramatically more time and effort than others. House hacking may be perfect for investors or couples without kids, live in flips could work best for those with some rehab experience, and BRRRR investing is reserved for those with proven investing experience.

While some of these strategies are as simple as buying a house and renting out a side, others require far more of a time commitment—time that many investors, like today’s guest Jeff, may not have. Jeff is already an established investor, currently living in a house hack that’s helping him offset his mortgage. But, he wants to expand into more return-focused real estate like live in flipping and BRRRRing.

But, with a high-paying job and lots of money in the bank, Scott and Mindy ask the question, “is real estate investing even worth it for Jeff?” Should he be sticking to stocks or does a labor-intensive rehab clearly outweigh the costs? If you’re wondering whether or not you should choose the real estate investing path to FI, make sure you hear out the arguments in today’s episode. 

In This Episode We Cover

Whether or not PMI (private mortgage insurance) is worth it on a low down payment loan

How to make moves to buy a rental property in today’s hot housing market 

Active income vs. passive income and which yields greater benefit 

Live in flipping and the benefits of doing your own work on a rehab

What to do when you have too much cash on hand in an inflationary environment 

Rolling over your 401k to maximize your non-taxable retirement income

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Health insurance for early retirement? Is that even a thing? If it is, it doesn’t seem self-evident in the United States. For most early retirees within the USA, you have a couple of options for healthcare—make a low enough income to qualify for government-subsidized healthcare or pay an exorbitant amount of money to either buy healthcare upfront or pay out of pocket any time you get sick. But, that’s not a terribly safe way to live, especially when you’re working with a (relatively) fixed income.

Throughout their world travels, Amy and Tim from GoWithLess have had to learn this the hard way. They were originally insured on a healthshare plan but found it far riskier than they would have liked. Now, as they travel throughout the United States, Mexico, and the world, they’re making sure they’ve covered all bases so a random surgery or two doesn’t force them back into the working world.

Early retirement health insurance is one of the biggest reasons that financial independence-chasers stay at their jobs, so if you’re itching to get your post-work-life travel on, listen to this whole episode. In it, Amy and Tim drop gems about finding health (and auto) insurance when retiring early (or abroad). They also discuss the best questions to ask a healthcare provider or broker, what to look for in a healthcare plan, and how to save money with digital nomad insurance. 

In This Episode We Cover

How Amy and Tim’s post-pandemic travel plans unraveled in 2020 and 2021

House-sitting, dog-sitting, and other ways to creatively lower your travel costs 

“Quick traveling” and the time/mental energy it takes to be a full-time nomad

Roth conversions and using resident-specific tax benefits to convert more

The top questions to ask a healthcare broker when choosing health insurance 

Car insurance as a retiree and how to pay less to be more protected 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

If you want to know how to save money, just look at your expenses. Odds are, if you’re like most people, you aren't budgeting or tracking your expenses to a tee. But there’s no need to be so hard on yourself, even our money mages themselves, Scott Trench and Mindy Jensen don’t always write down every cent spent. That being said, if you’re planning for a big trip, different expenses, or a sudden life change (like leaving your job), there is no better time than NOW to start tracking your expenses. Today’s guest, TJ, knows this all too well.

TJ makes a phenomenal income and already has a multi-million dollar net worth. But, he still suffers from money anxiety and not knowing how much he’ll need to step away from full-time work. Not only that, TJ is planning to take his children on a two-year-long expedition around the globe, all while TJ and his wife aren’t bringing in their regular high incomes.

But he isn’t just relying on his salary for monthly cash flow. TJ has also invested in rental properties as well as real estate syndications—both of which are providing him thousands a month in passive cash flow. But, after the globe-trotting ends, will TJ have to find himself another job or can he happily ski his way to early retirement upon re-arrival? 

In This Episode We Cover

Retirement accounts, private pensions, and setting your future self up for financial success

Cash savings and emergency funds, plus who needs them (and who doesn’t)

Rental property investing and real estate syndications for passive cash flow

Reducing spending and building a “future budget” that forecasts future spending

Money anxiety and how to mitigate it even if you have a high income and net worth

The 4% rule and using it to easily map out your date of financial independence 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

“Hustle culture” has been a term for the past decade or so. It somehow became a badge of honor to prove that you’re working the hardest, longest, and most stressful job around. You can handle it, you’re making money, putting in the hours, but what do you have left at the end of the day? This constant grind is what Mindy likes to call the “death race to FI” due to its unnecessary harshness on your free time, relationships, and mental health.

Pete McPherson foresaw this “hustle culture” taking over his life when he quit his sixty-hour week accounting job and decided to start his own business. This wasn’t the first, or second, or fiftieth time Pete had started a business, and he was driven to never set foot in an office again. He wasn’t making phenomenal money the first year, but he made enough to provide for his family, and that was enough for him.

Mindy and guest host Sarah Putt from OT 4 Lyfe talk with Pete about the rarely discussed downsides of chasing early retirement and financial independence. Make no mistake, even if you decided to work twenty hours a week, like Pete, you can still make plenty of money all while being able to watch your favorite movies in the middle of the day or spend time with your kids!

In This Episode We Cover

The detriment of “hustle culture” and why working hard doesn’t mean burning yourself out 

The importance of having an available safety reserve in case you get let go from a job

Jumping into entrepreneurship and developing the grind to make it work

Learning from your mistakes and seeing every failure as a lesson

Picking your “good enough” number and living life on your terms

Why time freedom is the ultimate goal of FI, not exorbitant wealth 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Emergency funds, frugal experiments, free photons, and “thoughtful spending” were just a few things that came to light during Carl and Mindy Jensen’s January 2022 budget recap. If you didn’t know already, Mindy has been publicly tracking her expenses and budgeting for BiggerPockets Money listeners (and the world) to see. But of course, as soon as Mindy shared her public budget, things started to go awry.

Nothing says “let’s start the month off right” like car repairs, furnace replacements, and sky-high gas prices. But, Mindy isn’t a quitter! Even with some big emergency expenses, she and Carl have managed to stay within budget for most of their costly categories in spite of life's fun financial curveballs. 

Carl and Mindy discuss their January “frugal experiment” including hotels and air fryers, how “dry January” became “moist January”, and why this financial powerhouse has opted out of the traditional emergency fund. If you’re starting this year with a few budget busters like Carl and Mindy, don’t let it keep you from hitting your overall 2022 spending goals. Track it, stick with it, and shoot for FI!

In This Episode We Cover

How expense tracking inadvertently stops you from overspending 

Using money in the most efficient way possible so you can increase your “thoughtful spending” 

Budgeting wins (and challenges) that Mindy and Carl faced this January 

Preparing from unexpected budget busters and whether or not an emergency fund is necessary 

How to allocate large bills throughout the year so you don’t go over budget 

Splurging on things you truly enjoy while keeping everyday costs as simplistic as possible

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Lifestyle creep, budget hesitancy, and cash scarcity are problems you’d likely hear from someone just getting into the realm of financial independence/literacy. But, funnily enough, these wealth woes aren’t coming from newbies—they’re coming from two asset-stacking veterans, Mindy Jensen and David Pere from The Military Millionaire Podcast.

While on the outside David and Mindy may look like squeaky clean financial figures, they’ve realized recently that they have to tighten up their systems to maximize wealth. Mindy has seen a slow and steady lifestyle creep, and although her income can support her, she still wants to have a strong sense of strategy when it comes to budgeting and expense tracking.

David has tried time and time again to budget, but it’s never really gone to plan. He also is feeling a bit stressed at times due to his “cash poor, asset rich” lifestyle that has allowed him to build so much wealth. Our two hosts serve as financial therapists for one another other in this episode as they dive deep into how each other can re-strategize their financial situations. Even the gurus don’t always get it right!

In This Episode We Cover

How to turn budget hesitancy into expense-tracking mastery 

Stocking up your emergency reserve so you (and your business) can survive life’s hiccups

Entrepreneur income and why you should go lean on your business spending, without compromising quality

Lifestyle/income creep and how to fight it so you can save and invest more 

Why everyone (even our money gurus) make mistakes from time to time

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rental properties can be a phenomenal second source of income for the majority of us who work at regular jobs. One or two rental property purchases every year or so can slowly, but surely, build a strong foundation for financial independence, sometimes within only a few years. Today’s guest Connor has taken this approach to wealth building and now sits on six rental units, splitting some of the profits with his partners.

Connor runs a lot of the operation for these rental properties. He has a background in construction management, making him an integral piece of any future BRRRR, flip, or rehab project he and his partners decide to take on. But, could these real estate partnerships be slowing down his personal wealth growth? And if so, how does he mitigate the risk of being an independent investor in a cash-intensive business?

Aside from his real estate portfolio, Connor also wants to simplify his personal portfolio, plan for future baby expenses, maximize his retirement, and get a better handle on his financial situation in total. Scott and Mindy leave Connor with some clear action items that may help him achieve financial freedom in his five to seven-year time horizon! 

In This Episode We Cover

Real estate partnerships and establishing the value that you bring to them

Generating more income (and reducing expenses) through live in flips and house hacking

Land contracts and seller financing on rental properties that allow you to scale faster

Student loan repayment, deferral, and when you should plan on starting up your payments again

Shopping for a baby as frugally as you can so you can invest for their future 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The poverty cycle is a hard one to break out of. For some people, it is near impossible to climb yourself out of the hole that society, family, or unfortunate circumstances have placed you in. But sometimes, through sheer willpower alone, those who break through can crush this cycle and bring their families up with them. Someone who’s done this (and much more), is Dr. David L. Rhoiney from surgiFI. 

Dr. David is a renowned “robot surgeon”, operating on patients using the finest precision that modern technology has to offer. He holds two degrees, has two homes, and invests heavily. You’re probably assuming he was raised in a family that taught him the worth of hard work, education, and investing early. You wouldn’t be more wrong.

Dr. David’s childhood consisted of a combination of living in cars, homeless shelters, sleeping on friend’s couches, and surviving completely on the edge. After being accepted into the US Naval Academy, he knew that he had to do everything he could to never return to that life. He has been told “no” thousands of times, that he wasn’t good enough, didn’t look the part, or simply that he wasn’t worth it. He proved every doubter wrong and has had the last laugh as he and his family now are on the path to a phenomenal financial future. 

In This Episode We Cover

Growing up and poverty and using it as fuel to strive for something greater 

Why you should always choose the “hard path” and pursue something others would fear

Medical student loans and going debt-free through intelligent financial decisions 

House hacking and using rental properties to propel your net worth higher 

Affordable housing and what real estate investors can do to help those in need

Giving yourself no other choice but to succeed, even when all bets are against you 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Ahh, the age-old question: pay off your mortgage early or invest? It’s no wonder so many members of the financial independence community have strong feelings about one or the other. With a paid-off mortgage, you’re less in debt, with more free cash to invest or spend on things you love doing. But, there’s another side to that cash flow coin. If you’re paying off your mortgage early, you’ll have less money to invest, leaving you with less compound interest. 

If you’ve been asking for someone to answer this question for you, be sure to thank today’s guest, Javier. He’s been doing a phenomenal job paying down his mortgage as quickly as he can, especially at such a young age. Javier has a respectable net worth and works not only at his W2 but also as a real estate agent on the side. Javier is struggling to find where to best put his extra $1,300/month once he pays off his primary residence.

And while this is a BiggerPockets Podcast episode, Scott and Mindy do not immediately vouch for real estate investing. Instead, they take a look at his overall risk tolerance, personal finance situation, and work backwards from his goals to find what he really wants out of early retirement, instead of just grasping for cash. 

In This Episode We Cover

Setting up your “bare-bones emergency fund” so you can invest with confidence 

Whether or not you should pay off your mortgage early 

When the right time to leave your W2 job is and pursue your side income streams

How to pay for healthcare when you’re self-employed or without work subsidies 

How much to allocate towards taxes per month as a self-employed individual 

When real estate investing does and does not make sense for your lifestyle

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You Need a Budget is the expense tracker/budgeter that requires no introduction…but we’ll give it one anyways! In 2004, Jesse Mecham launched this ground-breaking software, allowing money masters and novices alike to easily track their money and plan for a financially stress-free future. Jesse may have been the perfect person to build a product like this—he started tracking his expenses at age sixteen for fun!

As Jesse grew older, he continued to track his expenses regularly, allowing him to have a tight hold on his money and fight back the urge to go into debt. When his wife decided to take a backseat on working and have children, Jesse started to work harder at converting YNAB from a simple spreadsheet to a full-blown business. He was so conservative that three years into the business when he was making twice as much as his accountant salary, he continued to reinvest almost every cent of profit so he could have a strong financial foundation behind him.

Now, some eighteen years after launching, Jesse still holds the principles that he started YNAB with. He lives a simple lifestyle, enjoying “parlor time” with his seven children, keeping a strong emergency fund, and investing in a very, very conservative manner. Take it from someone like Jesse who has “made it”—budgeting can change your life. 

In This Episode We Cover

Why budgeting and expense tracking are important at an early age 

How simple expense tracking allows you to save and invest more while starving off debt

The four money rules that will change the way you think about your finances 

Where to keep the money that you’re saving for emergencies, down payments, and more

How to know it’s the right time to quit your job and pursue your passions

Running your real estate business through YNAB’s intuitive budgeting 

Why Jesse refuses to invest in high-risk assets while building his business

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Financial flexibility is one of the hidden stages along the path to financial independence. When you hit financial flexibility, you have far more choices than you did before. You can invest more, spend more, save more, and work less if you choose to do so. But, this type of lifestyle can only be achieved by being mindful and proactive about where your money is going, as today’s guest Kevin, knows very well.

Kevin’s story was posted on the BiggerPockets Money Facebook Group, where he relived the horror of his credit card being declined at his girlfriend’s birthday dinner. This struck Kevin, since he made a decent salary and was relatively responsible with his money. He contributed to retirement accounts and kept a lean emergency fund, so where was all his money going?

In today’s discovery, Scott and Mindy walk Kevin through which parts of his budget need a tune-up, and whether or not aggressive loan paydown is worth it for optimal financial flexibility. So where can you tweak your budget to maximize flexibility while minimizing credit-card-induced stress? 

In This Episode We Cover

How to pay off bad debt fast and work your way to debt-free status 

Achieving “financial flexibility” before financial independence and the steps to get there 

Tracking your expenses and budgeting for spending (every single month!)

How to cut food and eating out spending so your stomach and wallet stay happy 

What to do with extra income once you’ve paid off all your debt

The importance of a strong emergency fund and always having a safety reserve

And So Much More!

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Today’s guest, Jennifer Grimson, is a prime example that every problem has a solution.  Jennifer has always been a hard worker so she had no problem working through college as she aspired to be a foreign service officer, but her life took a turn when she fell in love and married her (now) ex-husband. Her dynamic with money completely changed as he spent money frivolously while she spent conservatively. When things ended poorly 8 years later he sued her 25 times, not including when he sued her mother and brother, and left her with $500,000 worth of attorney fees. 

At this point, she was left with nothing and had two children to raise on her own. While most would be completely devastated, Jennifer focused on finding a way out. Jennifer had never been scared of a little hard work so she found a job with a steady paycheck and filed for bankruptcy to help with her attorney fees. She continued to file for bankruptcy and start  from scratch until she could build herself back up financially. She was then able to rebuild her credit through various methods and gain financial autonomy. 

Her overall goal was to experience financial peace— but she didn’t stop there. She started building small pockets of wealth and always had at least three streams of income at all times. Once Jennifer found out about short-term rentals, she saw an opportunity and started buying houses to convert into Airbnb properties and turn a profit. After 4 years she created an astounding $1.4 million in income-producing assets! 

In This Episode We Cover

How to properly intertwine money and romantic relationships (and how to protect your personal wealth) 

Filing for bankruptcy and how it can be your saving grace from future lawsuits

Borrowing against a 401k and investing with retirement funds 

Rebuilding your credit from scratch (and even bankruptcy!) 

Short term rentals, passive investments, buying land and other ways to build long-lasting wealth 

Cost Segregation and how to greatly reduce your tax burden 

And So Much More! 

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Expats and rental portfolios go together like peanut butter and jelly. It’s no surprise that a fair amount of retired globetrotters owe their freedom to real estate investing. While many real estate investors are looking to retire themselves and their families in the US, today’s guest Paul has other plans.

Paul thoroughly enjoys his full-time job in Utah. He gets paid well, has access to some phenomenal benefits, and isn’t planning on quitting anytime soon. That being said, Paul has had the itch to live as an expatriate abroad, hopping from country to country, enjoying world travel. But, in order to do this, Paul has to create an income stream that can support him and his partner along their travels.

Of course, as a smart investor, Paul has already been building this extra income in the background. Since starting his rental property investing journey only a year and a half ago, Paul is already at five doors, with a sixth closing soon. He needs to be at ten doors to have enough rental income to cover his expenses in the US, but how much farther could that money go abroad? 

In This Episode We Cover

Why rental properties are perfect for those planning on retiring abroad

Keeping your expenses low as your income grows so you can retire early

When to transition from traditional retirement accounts to real estate investing 

Roth conversion ladders and turning pre-tax retirement accounts into post-tax savings 

Out-of-state investing and leveraging your high income to invest in low-cost areas

Using a HELOC (home equity line of credit) to fund real estate purchases 

And So Much More!

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Student loan forgiveness was a hot topic during the 2020 election cycle. With so many outstanding student loan payments, will the government step in to wipe out the debt? While many theorize about this, Robert Farrington takes the opposite angle, urging those who have student loans to prepare for repayment, rather than cancellation. This way, even if your student loans get forgiven, you’re put in a financially advantageous spot.

Robert runs The College Investor, a website dedicated to investing and personal finance for millennials. It comes as no surprise that the biggest thing on millennials’ minds are student loans, especially after two years of repayment moratoriums. So, how does someone strapped with student loans prepare for repayment, especially when so many variables are up in the air? Well, according to Robert, there are some simple steps you can take to make sure you’re paying on time and with as little stress as possible. 

Episode note: This episode was recorded prior to the new student loan pause, set to expire on May 1st, 2022. Mindy and Robert record a special intro to update listeners on the new dates set by the Biden Administration. All other topics discussed in the show, especially around repayment strategy, are still viable and accurate for those who have student loans.

In This Episode We Cover

The most recent student loan repayment moratorium update 

The difference between federal and private student loans and which are preferable 

Refinancing your student loans and why most people shouldn’t 

Student loan forgiveness and whether or not it will come to fruition this year

Steps you need to take NOW to ensure you don’t miss a payment or accrue extra interest 

Which repayment plans work best for your lifestyle and allow you the most financial flexibility 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Bad debt is more common than it seems. Many people you know have a car loan, personal loan, credit card loan, or some other form of high(er) interest debt. If you find yourself with bad debt, the first thing to do is formulate a plan to get rid of it, unless you want your savings and potential investments to suffer the consequences.

Today’s guest, Stephanie is in a financially solid position, but she has some bad debt to take care of. She’s on her way to financial freedom by forty after already owning a home and having some retirement investments growing in the background. But, her $13,000 window loan at ten percent interest is causing leakage of investable cash flow. 

Yet, Stephanie may be in a better position than she thinks. Since buying her house, she’s seen a big increase in her property value, which may enable her to secure some lower interest financing to pay off her window loan. Scott and Mindy also help Stephanie develop an expense tracking plan, debate whether or not whole life insurance is worth it, and put her in the driver’s seat to become a cash-flowing landlord only a few short years down the road! 

In This Episode We Cover

The importance of tracking your expenses and why every dollar needs its place 

Good debt vs. bad debt and how to know whether or not an interest rate is too high

HELOCs (home equity lines of credit) and using them to pay off bad debt

Whole life insurance vs. term life insurance and which makes more sense for you

Whether or not that bathroom upgrade will have a positive ROI

Becoming a financial expert slowly through podcasts, books, and enjoyable education

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Home insurance isn’t the sexiest topic, but in the world of financial independence, predictability is quite an attractive trait to have. That’s why money nerds across the world value insurance as a natural hedge against catastrophic wealth-ending disasters. Whether you’re a homeowner, a renter, or a landlord, home insurance could help you rebuild quicker after the unexpected happens.

Recently, a large fire broke out around the Denver, Colorado area, affecting families in Mindy’s home city of Longmont. Thankfully, Mindy and her family are safe, but many didn’t share the same fate. Hundreds of households were left without homes, while they watched their old neighborhoods turn to ashes and embers. This prompted Mindy to invite her good friend and insurance expert, Steve Longenecker, onto the show to discuss how you can financially protect your family when disaster strikes.

Are you underinsured thanks to rising home prices? How much will your insurance company pay you if your home is destroyed? How are renters protected during natural disasters? And who should you contact to make a claim? All these questions (and more) are answered in today’s bonus episode of the BiggerPockets Money Podcast. 

In This Episode We Cover

How home price appreciation greatly affects your insurance coverage 

Checking to make sure you’re not underinsured or overinsured 

“Binding restrictions” and how insurance companies use them during disasters 

Tips for homeowners on getting the most appropriate insurance policy for their needs 

Renters insurance and how renters can stay protected as well

How to submit and process a claim with your insurance agent

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Death and finances can arguably be called the two things that people hate talking about most. Unfortunately, these are two topics that cannot be kept in the dark, as we all must deal with loss, both emotionally and financially over our lifetime. What can the average person do when they’ve just received the heartbreaking news that a loved one has died. Even worse, what if it’s their partner?

This almost unimaginable shock came to Allison Nichol Longtin when her husband passed away six years into their marriage. Not only did Allison have to carry the emotional burden of losing her partner, but she also had to deal with the financial fallout of his death. She spent over a year carrying around a portfolio of papers, proving to numerous different entities that she indeed was the new owner of her husband’s accounts.

Allison admittedly made some mistakes in not preparing for the unexpected, but she’s since then made a strong case that every couple should do what she overlooked. Today, Mindy and Allison go through the top steps that every couple (married or unmarried) should take in order to keep their financial burden as minimal as possible during an unexpected death. 

This was a very difficult episode to record (due to the subject matter at hand). We wholeheartedly thank Allison for coming on and giving advice that will benefit every couple listening to this episode. 

In This Episode We Cover

How to prepare for the unexpected death of your spouse or partner

The importance of creating a will and estate planning 

Why having joint bank accounts is an often overlooked financial failsafe 

Having a plan in place to share passwords and login information for financial accounts

Defeating your money anxiety and becoming less avoidant about finances 

How to have a money date with yourself or your partner

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

“Can I retire yet?” If you’re today’s guest Jenn, then the short answer is a resounding “yes”. And if you aren’t Jenn, you’ll probably want to be in her position upon retirement. Jenn has a lot of income options: a military pension from her spouse, a great full-time income, real estate syndication cash flow, and a LOT of assets. Jenn’s net worth has reached the height of around $4 million, with more than a million alone in retirement accounts.

If Jenn is so set, why is she coming on the Money Podcast to talk with Scott and Mindy? Well, Jenn has a pretty large amount of expenses: somewhere in the ballpark of nine thousand dollars a month. She wants to know if she has enough passive income and investable assets to continue living life the way that she sees fit. Her family will also be moving to Europe for the next year or so, making it even more crucial that she has enough to enjoy traveling. 

This show talks about some pretty high-level concepts specifically around real estate equity and syndications. Even if you’re not an accredited investor, this information will be worth its weight in gold to you as you scale your income and net worth. Soon, you could be in a position just like Jenn! 

In This Episode We Cover

Military pensions and how to value them for retirement 

Spending less than you earn and joint vs. separate bank accounts for couples 

Building (and then selling off) a high-value real estate portfolio 

Investing in real estate syndications and the tax benefits that come with it

How to avoid “one more year” syndrome when thinking about retirement 

Maximizing your portfolio’s income and calculating your return-on-time 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most people assume wealth is built from a singular source, but the most successful people have multiple streams of income. 2020 was the year of the side hustle. People started to find ways to monetize their hobbies, create services, and capitalize on their talents. While some people are just now catching on, today’s guest, Jannese Torres-Rodriguez, was ahead of the curve. It all began with a food blog she started for fun that has turned into passive income for her $320,000 salary composed solely from her various “side hustles”. 

Before the start of her money journey, Jannese was on the traditional path to what most would consider the ideal type of success. She not only graduated from college but got her master's in pharmaceuticals and landed a job that led to her dream, a six-figure salary. Despite this, she was still unhappy and soon realized she was unaligned with the power of money. Over time, she made several lifestyle changes and started learning about financial independence. Using what she learned, Jannese finished paying off her $57,000 student loans and became debt-free in February of 2020.  

After 5+ years of accruing income from her food blog, Jannese discovered she could make her side hustles a full-time business and finally be fulfilled by the work she was doing. She began a podcast about financial independence that aims to help people of color learn more about financial freedom. She also does virtual workshops, digital courses, and brand partnerships as well as several other services that contribute to her salary. Jannese is a perfect example that you don’t have to give up what you love to make money, you just have to capitalize on it. 

In This Episode We Cover

How to find financial independence, even if you’re in a lot of debt 

How to minimize excessive spending while still enjoying your money 

Becoming a full-time entrepreneur and managing the struggles of being self-employed 

Outsourcing work and its importance especially when you’re stretched thin 

Dealing with Imposter Syndrome and overcoming shyness  

The value of diversifying your income and why it’s becoming more popular  

Finding your niche target market, even if you don’t think you have one 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Mindy may seem like a financial superhero to most listeners of the Money Podcast, but she’s nothing without her financial education inspiring partner, Carl Jensen. Carl is known quite well around the personal finance community as co-host of the Mile High FI podcast and writer over at 1500days.com. Carl and Mindy are just closing in on their twentieth anniversary, so there’s no better occasion to have them both on the show than right now!

Surprisingly, Carl and Mindy didn’t talk about money for a significant time once they started dating. Mindy credits her faith in Carl’s money skills by how he acted more than how he spoke. Carl was driving around a used car, he lived in a house he inherited from his grandmother, and he used a coupon on their first date (smart move, Carl). 

Now as a financial and romantic powerhouse, they both share thoughts on prenuptial agreements, protecting your wealth, 401k investing, and questions to ask a potential partner. Whether you’re single, dating, married, or a money-hoarding hermit, this episode sheds light on twenty years worth of money lessons learned so you can live a happier, more FI-focused life!

In This Episode We Cover

When a prenup is worth having and whether or not it will protect your wealth 

The telltale “context clues” of dating someone who has a frugal mindset

Frontloading your retirement accounts so you can build wealth faster

The importance of tracking your expenses and regularly updating your FI number 

Margin loans and getting low-interest debt on your stock portfolio

When to start talking about money with a potential partner 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Building wealth takes decades with some serious hard work and many, many mistakes along the way. The problem? Most financial independence chasers see themselves as having to be perfectionists. Every investment must be perfect, every dollar spent housed within a budget, and at no time can money become something fun or playful.

Joe Saul-Sehy and Emily Guy Birken rightfully see this type of “serious money attitude” as a mistake that should be avoided at all costs. Every financial guru, expert, or leader in the field has made money mistakes, stressed about money, and finally overcame to accomplish greatness. This is exactly what Joe and Emily want you to accomplish through their new book Stacked: Your Super-Serious Guide to Modern Money Management.

Joe and Emily threw out the old-fashioned mentality about money having to be a serious subject. Instead, they littered their new book with humorous anecdotes, financial innuendo, and lessons that will allow you, your child, your spouse, or your best friend to succeed. If you’re tired of stressing about money and want to start stacking it instead, preorder the new book today!

In This Episode We Cover

Why most personal finance books tend to miss the mark on being entertaining and informative 

Risk management and how it goes far beyond simply buying insurance 

The importance of having a financial plan in place NOW before disaster strikes

401ks vs. Roth IRAs and the future tax implications of retirement accounts 

Tax brackets and the simplicity of calculating yours 

Why Joe needed to “fire” his own mother from working on his book

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stocks vs. real estate is a regular feud among many financially savvy forums on the internet. While some investors love the passive aspect of stocks, other investors love the tax savings and flexibility of real estate. Regardless of your preferred asset, it’s better to stick your hard-earned money in something that makes money for you, instead of spending it or letting it sit.

Our guest today, Madison, is having trouble deciding which asset class she and her husband are best suited for. They have high-income jobs, a great net worth for their age, and just moved from the expensive San Francisco Bay Area to far more reasonable Texas. They’ll have a lot more money to stash away without the high rent, gas prices, or child care they had in California.

But neither Madison nor her husband have plans to retire early, so should they even plan for early retirement? Scott and Mindy walk Madison through her multiple different investing options, along with giving her the structure to formulate a three, five, and ten-year plan for wealth building and financial freedom. We may hear back from Madison very soon on the progress she’s made!

In This Episode We Cover

Why relocating to another state can be a massive savings lever 

Understanding when you want to retire and how your assets play a part in retirement 

Putting in your “500 hours” to any asset you truly have an interest in 

Turning your primary residence into a rental property after you upgrade 

Stock investing vs. real estate and the pros and cons of both

Reducing your spending so you can save (and invest) much more

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

If you need pension funds explained, there’s no better person to talk to than the internet’s leading voice on all things pensions and retirement, Grumpus Maximus. After spending twenty or so years in the military, Grumpus began to put his health, happiness, and passions first. Now, retired with plenty of money coming in (thanks to pensions and retirement accounts), Grumpus spends his time blogging and helping others ask the meaningful question, “is my pension worth it?”

Guest co-host Joe Saul-Sehy from the Stacking Benjamins podcast is here to help Mindy tee up some pension-related questions for Grumpus. Whether or not you have a job offering a pension or you’re debating accepting a job with a pension, the research-based questions asked today will help you evaluate whether or not a pension is truly worth it. 

You’ll hear about the safety of pensions, healthcare-impacted pensions, annuities, and Cost-of-Living Adjustments (COLA) so you can make the best possible decision regarding your (early) retirement plans!

In This Episode We Cover

“Cashing out” of a pension and what to do with the money

Understanding the healthcare implications that come with leaving a pension 

Which industries have the riskiest pension plans

Is an annuity ever worth the fees? 

Researching your pension and understanding the benefits 

How to analyze the safety of an organization’s pension plan 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A common debate in real estate is cash flow vs. appreciation. While some investors rely on their rental property income to reach FI, others argue that appreciation will provide them the equity gain to truly build wealth. You’ll hear this discussion in-depth on today’s episode as guest Jackeline walks Mindy and Scott through her $20,000 rental property in Northern Illinois. 

Jackeline is already doing well in other aspects of her life. She’s got a high net worth, with fully-funded retirement accounts and a big cash cushion, but she wants to reach FI by 45 so she has the option to retire. One of the best ways to do that? Cash flowing rentals! The only problem is that Jackeline is buying these rentals in a less-than-optimal area.

With rentals in C or D-class neighborhoods, you can count on more tenant problems, repairs, and headaches. But, these downsides come with the big upside of higher cash flow. Scott and Mindy both help Jackeline balance the scales on what is most important to her: buying in an appreciating market but using more of her cash or continuing to purchase low-cost, riskier rental properties. 

In This Episode We Cover

Building multiple financial safety nets between retirement accounts, cash, and cash flow 

Buying rentals in C to D-class neighborhoods and the pros/cons associated with them

Properly screening tenants to minimize turnover and maximize ROI

Experimenting with different rental property classes to find a strategy that works for you

Finding your real estate tribe and networking with others who can help you grow

1031-ing a property to avoid a tax penalty and grow your real estate portfolio

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We have a lot of impressive guests on the show, and they just seem to get younger with every new episode. You’ve heard the stories of people in their twenties buying rentals, people in their thirties hitting coast FI, and people in their forties and beyond making many, many millions. But, what about a marine recruit, making a low salary, buying more than $800k in real estate within his second decade on earth? Now that sounds like an interesting story.

Jabbar Adesada fits the bill exactly! After moving in with his father, he was given strict instruction to read books like Rich Dad Poor Dad, I Will Teach You To Be Rich, and Automatic Millionaire. Jabbar decided to put down his NBA/med school dreams and open up a brokerage account. Lucky for him, right around the time he started investing was the 2020 stock market crash, giving him all the discount he needed to make his first profits.

After running some “when will I be a millionaire?” scenarios, Jabbar realized that real estate, and not the stock market, was the best path to financial independence. Jabbar shares the story of how he was able to find funding, a down payment, and a property that would allow him to house hack, Craige Curelop style. Not only that, Jabbar just closed on a short-term rental in the Smoky Mountains, which puts his real estate portfolio north of $800k! Let’s mention this again: He’s twenty years old! 

In This Episode We Cover

Why early financial education can make or break your child’s path to success

The best finance books that you (or your child, cousin, niece, or nephew) should read 

Why crashes aren’t a sign to panic, but a sign to buy more

House hacking at a young age, and how to get pre-approved for loans without an extensive job history 

Having an “obsessive mindset to be wealthy” and using it to help not only yourself but others

Practicing delayed gratification and building a brighter future with each investment

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are many ways to fund your nest egg. You could outright save, or you could invest in index funds, rental properties, or short-term rentals like today’s guest, Charlotte from Charlotte. Working as a teacher in one of the lowest-paid states in the US, Charlotte was able to fully replace her teacher’s salary by operating a single short-term rental cabin in Western North Carolina.

When she discovered the FIRE Movement only a year ago, she knew that intelligent investments like this could fund the globetrotting adventures she and her husband had plans for. But, with her husband four years away from securing his government pension, Charlotte wants to be absolutely sure that her short-term rentals will be pulling the fiscal weight of word travel when he steps away from his job.

Charlotte may be a rookie in the terms of real estate investing, but she’s far from it when it comes to taking actionable steps to ensure phenomenal returns. She’ll be hitting a 100% cash-on-cash return with her newest rental addition! If you have dreams of early retirement through real estate, follow Charlotte’s lead by planning, executing, and financing to FI!

In This Episode We Cover

The phenomenal returns of short-term rentals and why now may be the best time to invest

How to plan for retirement with a pension or predictable income stream 

Investing in index funds vs. real estate when trying to hit FI

Vacation home, second home, and portfolio loans for your next short-term rental

Why the high price of STR property management may be worth the peace of mind

And So Much More!

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If you’ve been in the FI community for years, you know the ins and outs of retirement planning, index fund investing, house hacking, and every other money-making opportunity around. But, it’s safe to say that this took you years to figure out, sometimes well into adulthood. What if you were given the same knowledge you have now, but when you were a teenager?

Dan Sheeks is trying to do this exactly, by teaching his students about personal finance, saving, investing, and how they can plan for FI. Dan has taken his knowledge of finance, teaching, and working with teens to write First to a Million, a Teenager’s Guide to Achieving Financial Independence. In this book, Dan takes teens on a journey through the four mechanisms of financial independence and teaches them to plan money around what makes them happy.

So many teenagers have seen their parents run off to work only to come home exhausted, constantly checking emails, and rarely present with the family. Dan wants to make this all-too-real future a thing of the past for teens who are willing to work hard, be frugal, and practice financial discipline. 

In This Episode We Cover

Why The American Dream may be off-course for modern teens 

The financial independence “plan of attack” for teens who want to hit FI fast

Why happiness should be at the forefront of your financial decisions 

Whether or not college is still a viable choice for today’s modern working world 

The importance of having a strong community you can count on

And So Much More!

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We’re back with another Finance Friday Follow-Up! This week, we talk to two past guests and review three life updates. Fabio from episode 174, Clayton from episode 168, and Rachael from episode 190 all have life updates for the audience!

When we last talked to Fabio, he was starting to expand his real estate empire. Since the market has been so hot, he has had to pivot his strategy towards what works best for him in the long term. With a few years of military service left, Fabio wants to wind down his more active income and pursue more passive income streams, while still including real estate and stocks/index funds in the mix!

Clayton shared with us on his solo episode how lucrative living on the road can be. Since then, his girlfriend has turned into his fiancé, he’s been offered a very large pay raise, and he has scaled his real estate portfolio with one more house hack. He also gets to take his foot off the literal gas pedal since he’ll be transitioning into a more stay-at-home role.

Rachael wasn’t able to be here for a video interview but sent Mindy an update on her overall financial situation. Since we last talked, Rachael realized that house hacking wouldn’t be exactly the right fit for her family. Thankfully, she’ll be closing on a new home closer to her children. Rachael also found herself in a particularly scary financial and medical situation since we last talked, something that you’ll hear about in-depth on a new episode in the coming months!

In This Episode We Cover

When is the right time to sell a property, especially in a hot seller’s market?

Paying off high-interest debt so you can reach financial independence faster

The importance of budgeting and expense tracking so you don’t impulse buy

ESPPs (employee stock purchase plans), HSA (health savings accounts), and other lucrative investing options 

Sharing the financial knowledge with your significant other in case of an emergency

And So Much More!

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On the last day of a semester in college, Adam Zaleski’s geology professor dropped a bomb on his class: the professor was worth a staggering $10,000,000! The reason for telling the students about his net worth wasn’t to impress but to make the case that exponential growth is more likely than most people think. This taught Adam that he needed to choose a profession he enjoyed so he could continue to work, invest, and grow his wealth exponentially, just like his professor. 

Adam did just that, and now, he’s a millionaire professor, working a casual thirty hours per week, doing what he loves! Adam knew from the beginning it was more important to make long-lasting, intelligent financial decisions, instead of chasing after a bigger salary. He did this right out of college, taking a serious pay cut to live in a state with far cheaper housing, allowing him to house hack, build wealth, and reach financial freedom.

Now, Adam is looking to expand his real estate empire a little further, without having to sacrifice a large amount of time to do so. If you’re interested in partnering up with Adam or looking to chat about long-distance real estate investing, market analysis, or the best surf spots in Kauai, shoot Adam a message on BiggerPockets!

In This Episode We Cover

Why lifestyle choices are important when choosing your job, house, and investments 

Understanding the value that comes with exponential wealth growth 

House hacking and analyzing real estate markets with the most growth opportunity 

Buying rentals in places you love, so you can write off the trip!

Scheduling your rent raises so you keep up with market cash flow 

The most important financial lessons of your 20s, 30s, and 40s

And So Much More!

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It takes a leap of faith to leave a W2 job and wander through the hills and valleys of self-employment. With the right skill set, time management, and perseverance, you can come out more profitable (and happier) than you were originally at your old job. But, once you succeed, it may be hard to slow down the self-employment train, and your side-gig could become a full-on business, with the need for employees.

TJ has put herself in a phenomenal position, both financially and income-wise. She left her job to become a full-time consultant but knows she won’t be able to expand without hiring her first employee. Her business would need an employee to bring in more revenue, BUT she needs more revenue to bring on an employee. What would you do in this situation?

Scott and Mindy have both spent time outsourcing and hiring before. They help TJ develop a roadmap to getting her first hire on board while keeping crucial revenue in the business. This episode also dives into self-employed health insurance, project management, and hiring a junior position that can grow into a senior in little time. 

In This Episode We Cover

Why it’s imperative to keep your costs low while trying to run a business 

What to do once you’ve hit your max capacity for work at your business 

Whether or not now is the time for you to hire your first employee

Fully mapping out the cost of a full-time vs. part-time worker on your team

Putting together a business plan that allows you to forecast your business’s future 

Health insurance while self-employed and why an HSA plan may be your best bet

And So Much More!

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Is college worth it? For the first time in history, we may have a definitive answer to whether or not your specific degree and school choice provides a positive ROI. We know that ROI isn’t the only thing that matters when choosing a degree, but when looking at higher education through a financial independence lens, it’s definitely the highest value.

Looking through census, employment, and Department of Education data is number crunching crusader, Preston Cooper. Preston and his team over at The Foundation for Research on Equal Opportunity put together the most extensive research on college degree ROI ever created. Preston’s findings allow you to parse through over 30,000 degrees and school choices so you (or your child) can make the best decision on where to get a bachelor's degree.

Preston discusses the discrepancies between nonprofit and for-profit university degrees, whether or not high-cost schools equal a higher payday through life, and why even going to Harvard doesn’t secure a high ROI. Want to know the true value of your degree? Tune in and check out Preston’s full study!

In This Episode We Cover

How much you could benefit, in general, from getting an undergraduate degree

The degrees that have the highest lifetime ROI

Degrees that offer little-to-no or negative financial benefit

Whether investing in real estate or a college degree is more worth it 

The biggest criticisms of Preston’s study and how he combats them 

Dave, Mindy, and Scott’s ROI on their respective degrees 

And So Much More!

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Everyone knows that tech salaries tend to be on the higher end. In tech, you could be working as an engineer, programmer, or statistician, like today’s guest Matthew. But, Matthew never planned to go to school for this type of work. Half a decade ago, Matthew was wearing a chef’s apron, working forty to sixty-hour weeks, making slightly above minimum wage. He loved the work (and the food) but realized he couldn’t keep living with the long hours, low wages, and high stress.

Mathew went back to school to study statistics and landed a job in tech, which he’s just recently moved on from, and accepted a far higher salary. This all sounds like good news, so what exactly is Matthew having trouble with?

After maxing out many of his retirement accounts, Matthew is wondering where else he should be putting his money. He’s already saving a significant amount every month, thanks to his frugal lifestyle, but wants to be sure he’s standing on a strong financial foundation. Should he look into rental properties, taxable brokerage accounts, or higher-risk assets like tech stocks and crypto? If you’re lucky enough to have a little extra change left over at the end of every month, you may be in Matthew’s position too!

In This Episode We Cover

Changing careers even after you’ve been working in the industry for years

What to do if you’re young and don’t know which field to study 

Keeping your expenses low, regardless of how well your job pays

Starting side businesses that can help you float expenses 

Investing in after-tax retirement accounts vs. investing in post-tax retirement accounts

Live in flip tips from the master herself (Mindy Jensen) 

Calculating out your estimated retirement nest egg using the ‘Rule of 72’

And So Much More!

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You’ve heard the old statistic “nine out of ten businesses fail”, but why is that? If there are so many people willing to risk their livelihood to pursue a great idea, why do so many end up broke and back at a job? Gabe Nelson, certified financial planner and business advisor, has an idea.

Gabe advises many business owners and solopreneurs through building their businesses with maximum cash flow and minimum time commitment.

A couple of decades ago, Gabe was in the position many entrepreneurs are in today. He was working seven days a week, almost living at the office, doing anything he could to build his business. Once his daughter was born, he knew he had to take a step back from the seven-day workweek. Then, his second and third daughter were born, forcing him to automate, delegate, and eliminate every unnecessary task on his plate. 

Now, with a thriving firm, Gabe knows what does (and doesn’t) work for solopreneurs, and the systems they need to implement now to secure a happy life tomorrow. 

In This Episode We Cover

The #1 thing you should do before you start a business or side hustle 

Keeping your relationships healthy while working long hours at your business

Outsourcing when you’re ready and growing a self-operating team 

Laying the groundwork of communication between you and your partner 

Managing cash flow in your business and keeping a healthy safety reserve

Trusting the “whispers” that your gut tells you about your business

And So Much More!

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Your late 20s through early 30s can be a financially troubling part of life. You aren’t making the most money you ever will, but you’re tackling big expenses. A wedding, a down payment, and trying to max out retirement accounts can put you in a financial tizzy. But, it doesn’t have to be so complicated, especially if you stick to a scalable investment strategy.

Today’s guest Louise is in this position. She recently changed employers and found herself with a big uptick in monthly income. She has plans on the horizon to marry her girlfriend but knows this will come at the cost of many thousands of dollars (rings, dresses, etc.) She’s also looking at buying a primary residence, but is already familiar with the home buying experience (she has two rentals!) Louise has a plan to hit FI (or at least coast FI) by age 40 and wants to know the best way to optimize her finances to do so. 

Scott and Mindy have a healthy debate over 401ks, Roth IRAs, refinancing rental properties, and combining finances as partners, in order to get Louise in the best position possible to tackle her financial goals. 

In This Episode We Cover

Why switching jobs may be the ultimate hack to getting a better salary 

Whether you should max out your Roth, 401k, Roth 401k, or HSA

Getting a cash-out-refinance instead of stockpiling cash 

Whether or not paying off a rental property mortgage is a good idea

Renting vs. buying when living in an expensive market 

Combining finances as a couple and having the ever-important “money date”

And So Much More!

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There are few people on this earth that can make Mindy laugh as much as Alex Felice. He’s been around the block with BiggerPockets a few times, appearing on episode 301 of the BiggerPockets Real Estate Podcast. Alex has a growing rental property portfolio, a flipping business, and is a professional photographer/videographer. But, beneath his success, was thirty-one years of financial struggle.

Alex was taught financial skills growing up. The only problem: he didn’t listen to any of the advice he was given. He joined the Army without any skills, and as soon as he got out, he immediately bought a new car with a high monthly payment. He then was hit with a DUI, forcing him to really think what his life would turn out like unless he made a change.

He needed cash flow but didn’t want to go out and get another job, so he settled on investing in real estate. It was important for Alex to have a “get rich slowly” type asset, one with stability that could take care of him well into retirement. Now, he’s amassed an impressive portfolio, with some large commercial deals and flips on the side. Alex spends his days investing, working on his skills, traveling, and really doing whatever he wants!

In This Episode We Cover

Why self-sustainability is more important than a big paycheck 

Using “radical responsibility” to mold your perfect life and never falling into the “it will be okay” trap

Buying foreclosures and BRRRRing properties to minimize cash needed for investing

Having control over your money so you have ultimate financial freedom

Why you MUST surround yourself with like-minded, successful individuals 

Focusing on your passions (regardless of whether they pay well or not)

And So Much More!

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“Should I cash out my 401k?” That’s a question you never want to ask in an online financial independence forum. It’s been a well-known rule to never cash out retirement accounts due to withdrawal penalties, tax implications, and the possibility of throwing away your retirement plans. But, what if you had a substantially larger amount in real estate and other assets, what would you think then?

Kate is in this exact predicament and has done a phenomenal job at growing her wealth over the past decade. Kate and her husband have acquired $1.8 million in rental properties, bringing in gross rents of over $10,000 per month! She’s currently sitting on half a million dollars in rental property debt and is wondering whether cashing out her 401k to pay off the debt would make sense.

Because Kate is in such a high cash flow position, she may be asking a question that’s not so obvious. Mindy and Scott spend time walking through calculations that allow Kate to visualize what her life would look like with paid-off rentals as opposed to a fully-funded 401k account. 

In This Episode We Cover

Why a mentor can help spur you onto to make better, more aggressive investing decisions 

Moving to a different part of the country to take advantage of higher salaries

How to calculate whether or not you should withdraw your 401k funds 

Switching your job to a more flexible schedule without giving up your salary

Travel hacking and using credit card points to pay for your vacations

The benefit of using financing to buy your primary residence or rental properties

And So Much More!

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Brad Finn was raised with a strong work ethic that follows him to this day. He always knew he should be working hard, and that’s exactly what he did. Brad worked throughout high school, college, and started multiple businesses in adulthood. While his work ethic was strong, his financial skills were lacking. When Brad went to college, he remembers using almost a third of his student loans on partying alone.

Fast forward to his mid-thirties, Brad is waking up in a beautiful house, with two nice cars in the driveway, a great income, a new business, and a negative net worth. It wasn’t until Brad allowed himself to look at the true number behind his net worth that he realized something needed to change. Fortunately, his wife had been slowly, but surely, trying to tell Brad that they had to make that change.

The day Brad’s first child was born, he and his wife were debt-free. This didn’t come easy, especially since they were facing close to $190,000 in debt. They tracked their spending and realized they spent close to $20,000 in two months, solely on eating out. They dialed it in, worked side jobs to boost their savings rates, and rewarded themselves when they hit milestones. Now their net worth is growing fast, and they’re locked in on investing.

In This Episode We Cover

Calculating how much you need in student loans and taking out that exact amount

How to continue your debt payoff journey without getting discouraged

Rewarding yourself for big milestones, even if it will set you back a small amount

Talking to your partner about money and asking their opinion on strategies 

Raising your budget on things that matter while lowering it on things that don’t

Retirement plans for government workers, like 403b and 457 plans 

Understanding that the long journey to financial freedom is worth it

And So Much More!

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Retirement planning can be complicated when you have so many options to choose from. Do you stick with the Roth IRA, the 401k, the Roth 401k, your employee pension plan, or solely invest in stocks and real estate? With all these different types of accounts and their numerous benefits and drawbacks, it’s easy to get stuck financially stalling. 

One person who has been able to optimize his retirement plans, is Matt, pilot and soon-to-be captain, delivering cargo around the United States. Matt bought a home in high-appreciation St. Petersburg Florida, where his home has already gained a fair amount of equity. Although he loves the ability to rent out his home and create cash flow, Matt doesn’t like staying on dry land for too long. He’s going to captain his own home; living in a houseboat and renting out his primary residence to lower his living costs even more.

Matt talks through questions he has about his 401k, Roth 401k, Roth IRA, and other retirement accounts. Even though Matt feels he could be optimizing his finances for faster retirement, both Mindy and Scott agree: if he keeps doing what he’s doing, he’ll reach his fifty-year-old retirement goal, without any change to his current lifestyle.

In This Episode We Cover

Deciding between the 401k, Roth IRA, Roth 401k, and other retirement accounts 

House hacking and taking advantage of low-interest, owner-occupied loans 

Whether or not an employee pension should be thought of as a guaranteed retirement 

Living on a boat to save money on housing costs and maximize cash flow

How to plan for retirement when you have an age limit for your job

Employee stock purchase plans (ESPPs) and when to invest in one

And So Much More!

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If you’re part of the FI community, you’re probably a saver. Heck, if you’re listening to this podcast you’re probably a saver. While we all are busy optimizing our budget, reinvesting dividends, and contributing to our retirement accounts, do we ever take a step back and ask, “why are we saving so much?” Maybe you have a simplistic answer for this: your kids, your spouse, your “future”. When it comes time to finally reap the rewards of all that saving and investing, we struggle, and often fail to do so.

Ramit Sethi, the author of I Will Teach You To Be Rich, has struggled with this in his personal life as well. When he got married, he and his wife spoke about what money meant to them, and they were shocked to have completely different answers. While Ramit loves setting up models and spreadsheets, he also encourages couples to speak about their finances through a shared vision. It isn’t “I’m saving this money so we can be happy”, it’s “WE are saving this money so we can take that camping trip we always dreamed of.”

We touch on other topics like joint bank accounts, creating a “worry-free number”, and building a rich life together, as partners. Ramit also gives personal advice to Mindy to help her realize that she has already won the “money game”, even if it doesn’t feel like it at times. 

In This Episode We Cover

• Combining finances as a couple and creating a shared vision 
• How much to keep in your personal and joint bank accounts 
• Creating your “worry-free” number that allows you to live life without money stress
• The “money rules” that Ramit uses in his daily life 
• Getting over your “savings rate obsession” and finding joy in spending 
• Why spending can become painful for those who are on the road to financial independence
• And So Much More!

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A few weeks ago, Mindy was asked by a listener of BiggerPockets Money, “when are you going to do a Finance Friday follow-up?” Well, listener, your wish has come true! Today we talk to three past guests of the BiggerPockets Money Show, Sarah from episodes 6 and 178, Brian from episode 180, and Erik from episode 170.

In Sarah’s most recent episode, she spoke about having large safety reserves and sinking funds for her new property. Since being on the show, she’s taken time to evaluate how safe she really needs to feel. She’s taken a risk and has started to invest in her first short-term rental, as well as being on the house hunt for her next house-hack property!

Brian had the question we all want to have, “what do I do with all this money?” Since coming on the show, he’s expanded his rental property portfolio, purchasing an off-market five-unit in upstate New York, and a short-term rental in North Carolina. He’s currently looking into syndications to see if that would be another great avenue for his wealth accumulation. 

Lastly, Erik has returned to the show with more rental units and more cash flow! He’s been able to pay off his HELOC with a very lucrative refinance, allowing him to buy a new condo that is paying him $400/month after all expenses! He was even able to increase his salary thanks to his employer’s free education program! Make sure you stick around for his bonus tip towards the end of the episode! 

In This Episode We Cover

Why being too conservative with your savings can become a financial detriment 

Making offers on properties that work for your numbers, even if it means rejection

Why short-term rentals are very cash flow heavy investment 

Telling everyone you know that you’re investing in real estate (to get more deals!)

Using a cash-out refinance to pay off old loans like equity lines and HELOCs

Taking advantage of employee benefits like free college tuition 

And So Much More!

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Amber Porter has one of the most optimized retirement plans we’ve ever seen. Seriously, she could give Mindy and Scott a run for their money! Amber grew up in a neighborhood that was anything but rich. Surprisingly, the wealthier people in her neighborhood were more interested in purchasing nice cars instead of investing, which they told her was essentially gambling. Amber quickly saw past this idea and realized that smart, consistent investing could lead her to many millions of dollars.

She worked throughout high school and was able to graduate in only three years. Then, she applied for every scholarship possible and did the same in college, graduating in three years and completely debt-free. Suddenly, the idea of law school came into her head. She studied, passed the entrance exam, and got into a top school. The same school even gave her a twenty-five thousand dollar scholarship every year she attended.

After graduating, she started investing heavily, working as much as she could to fund retirement accounts. She started working for the Army on the side, which allowed her to get an even better retirement plan, an army retirement check, and the ability to buy homes with a zero percent down VA loan. If all goes to plan, Amber will be retiring with close to ten million dollars at age fifty! 

In This Episode We Cover

How to graduate from college debt-free by taking advantage of scholarships 

Graduating early so you can save a year's worth of tuition 

Working a government job with the benefit of a pension upon retirement 

Military benefits for homeownership, retirement investing, and more

Getting rid of the “investing is gambling” fear many people have

Reaching Fat FIRE upon retirement so you can live exactly how you dreamed

And So Much More!

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Marching along Bourbon Street last week was a parade with some of the best real estate investors in the world, celebrating another successful BPCon, ready to take on the world. Throughout the past week, attendees of the conference heard from world-class business leaders, investors, and authors, learning about everything from running a business to short-term rental markets, to self-storage, and more.

On this live episode, your BiggerPockets Money host, Scott Trench, is joined by Brandon Turner and David Greene, hosts of the BiggerPockets Podcast, Ashley Kehr and Tony Robinson, hosts of the Real Estate Rookie Podcast, and Liz Faircloth and Andresa Guidelli, hosts of The Real Estate InvestHER Podcast, plus special guest Esther, who has a widely impressive portfolio herself.

You’ll hear the hosts talk about topics like how to connect with fellow investors, future trends influencing the real estate market, what’s working today (and what isn’t), plus a live version of the Famous Four and Fire Round. 

If you weren’t able to make it to this year's BPCon, plug into this episode and get on the waiting list for next year!

In This Episode We Cover

What’s ‘firing up’ the hosts of the BiggerPockets Podcast Network?

What investors can do in today’s market to ensure wealth tomorrow

Future trends that allow investors to profitably pivot 

How BPCon helps connect investors, reshape ideas, and build wealth

How do you vet partners before you go in on a deal with them?

The top characteristics that contribute to your success as an investor 

Why you should definitely be at BPCon 2022 

And So Much More!

Links from the Show:

NPR (National Public Radio)

Kevin Leahy's BiggerPockets Profile

Mark Ferguson's InvestFourMore

Wendy Papasan's LinkedIn Profile

Noah Evans's LinkedIn Profile

Rickey Rodriguez's BiggerPockets Profile

Your First Real Estate Investment Podcast: How to Recover from the Great Recession and Leverage Creative Financing to Fund Your First Deal

Joe Asamoah's BiggerPockets Author Profile

AJ Osborne's Personal Website

Steve Rozenberg's BiggerPockets Profile

InvestHer's Partnership Question Guide

Meetup

Hal Elrod's Personal Website

Dave Ramsey's Personal Website

Cashflow The Board Game

Matt Faircloth's BiggerPockets Author Profile

BiggerPockets Calculators

The Real Estate InvestHER Community

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If you and your sweetheart want to get married, rent a truck in a Colorado ski town, and have your dog watched while you’re doing so, Stephanie Warner is the person you should get in touch with. Even though she has a great W2 job, she still hustles hard with her side income work, making enough to pay for her lifestyle while her nine-to-five pays for her future financial freedom.

Stephanie had enough money growing up, but she wasn’t given a ton of financial literacy lessons from her parents. Thankfully, her Grandma who loved driving used cars and buying rental properties taught her the importance of being a homeowner and helping those who are in need. Once she left her hometown for college, graduated, and got a job, she moved all over the country doing all different sorts of work. This gave her a diversified education and allowed her to take on challenges that were interesting to her.

Now, she shares with BiggerPockets Money listeners how she flipped her financial position, thanks to some very lucrative side hustles!

A special thanks to our guest host, Joe Saul-Sehy from Stacking Benjamins, who got so tired of Scott’s puns, he decided to host one of the shows himself.  

In This Episode We Cover

The importance of owning your own home and rental properties 

Graduating with little-to-no college debt, allowing you to save and invest more

Taking on jobs that interest you, instead of ones that solely pay the bill

The art of side hustles and making thousands after your nine-to-five

Living “paycheck to paycheck” by paying yourself first for investing and saving

And So Much More!

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Over at BiggerPockets, we all have much love and respect for our trusted video editor, Joel Esparza. He brings phenomenal work quality, timing, and communication to every project he’s on, but many of us don’t know his inspiring and truly impressive backstory.

Joel is originally from Venezuela, which has experienced rampant inflation over the past decade putting its citizens in economic turmoil. Joel went to school in Argentina and was able to leave without debt thanks to an inheritance left to him. When he migrated back to Venezuela, he was hired as a video editor for an agency making, get this, $20/month. Yes, that’s correct, we’re talking about $240 per YEAR. 

This was not an uncommon salary for Venezuelans, but through sheer luck, Joel was introduced to some side business that began paying him two to three times the amount he would make in one month, in only two hours. Joel quickly jumped ship as an employee and began building his clientele as a self-employed editor. Now, as the head video editor at BiggerPockets, Joel wants to outsource his business, hire on staff, and move towards more of a leadership role.

In This Episode We Cover

The massive financial struggles of living in Venezuela during exceedingly high inflation

Living as a political refugee in a brand new country on a whole different continent 

Using freelance work as a way to substantially increase your income 

Starting partnerships with others in your field who may become competitors 

Being cognizant of your professional strengths and using them to get more clients

Understanding the unit economics behind growing a business and a team

And So Much More!

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It didn’t take Addison Freeman long to realize what worked in school, wouldn’t work in real life. Those who got good grades and followed the standard playbook weren’t rewarded as plentifully on the investing front as they were in the classroom. When Addison realized it would take her over thirty years to hit millionaire status on the conventional track, she knew she needed a change.

Addison started to look for, as she likes to call them, “super assets” or assets that grow while putting cash in your hand. She started with a house hack duplex where she was able to pay her mortgage by renting out one side. Then, she started to get into self-storage investing, which is now her husband’s main job. Along the way they tried (and failed) at starting businesses, but never took their foot off the gas on their journey to financial independence.

At the age of 26, Addison and her husband are financially independent, sitting on a net worth of over $700,000 with an almost guaranteed chance at being part of the millionaire class very, very soon.

In This Episode We Cover

Why conventional investing won’t cut it when you’re trying to be a millionaire

Buying as many “super assets” as you can while you’re young 

Starting a small business and the reason that it may (or may not) fail

Why self-storage is an excellent industry for real estate investors to get into 

How commercial real estate is valued and the immense equity you can add to it

Living below your means and investing hard for years 

And So Much More!

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Strong frugality is hard to come by. Not many people would write off their solar system as a business expense and use bitcoin mining to provide heat to their house, instead of using a space heater. These are just two things that Yourri, an engineer and diversification whiz, has done to make his balance sheet as optimized as possible.

Yourri has spent the better part of the last decade at school and was able to graduate with a phenomenal job doing something he loves. He makes $120,000 a year but has a big retirement goal of $7,000,000! While this may seem like a massive number to most, Yourri should be able to hit it with some regular investing due to his age and aggressiveness to invest. But, he’ll need to opt-out of an over-diversified investing strategy if he wants to reach this goal as fast as possible.

Passion projects are also a big part of Yourri’s life, as he’d like to rebuild a vintage motorcycle, get his pilot license, and adopt as many dogs in need as he can. He has a calculated outlook on his financial growth, and there’s no doubt he’ll hit his goals!

In This Episode We Cover

Pursuing high-cost hobbies and understanding that FI isn’t all about saving every penny

Whether or not diversification could be slowing down your net worth growth 

The “golden butterfly” investing ratio that helps mitigate risk when investing

Writing off solar systems as a business deduction when in a buy-back program 

Mining bitcoin for not only extra income but free heat!

Whether a 401(k) or a Roth 401(k) is the best option for your retirement

And So Much More!

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High-income earners have a better shot at retiring early than those making a median income.  That being said, with more money comes more investing risk. After the great recession, Bob Haines was sitting on a $300,000 loss from leveraging too many properties to flip. This put the possibility of retiring early multiple years behind. But, even with a money mistake as large as Bob’s, he’s been able to retire at age forty-four, a good twenty-one years before the standard retirement age.

You could say that Bob’s early retirement sprung from his ability to take risks, leave jobs, and go where the money was. Bob went from making $40,000 a year at his first job to $500,000 less than a decade later. While a $500,000 salary was not the norm for Bob, these frequent career and company jumps allowed him to build up a massive cash position ($250k) and invest for retirement faster.

Funnily enough, the first time Bob heard about the FI movement, he quickly calculated his FI number and realized he had already hit it. While he took a couple more years to finally pull the trigger and get over his “one more year” dilemma, Bob and his wife were able to retire in 2018 and 2019, allowing them to travel, spend time with family, and enjoy life at the beach.

In This Episode We Cover

Why small salary increases can massively change a financial position 

Calculating your market salary and finding a job that matches it

The world of “pre-sales engineering” allows for huge compensation 

The mistakes you can make when sitting on a large amount of cash 

Over-leveraging yourself in real estate and biting off more than you can chew

How to shake off “one more year syndrome” to enjoy early retirement 

Fighting lifestyle creep even as your salary expands exponentially 

And So Much More!

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A rock-solid financial position consists of a few things: budgeting, expense tracking, living below your means, and making extra income. Once those are accomplished, you’re on track to start investing heavily and financial independence is in sight. This is exactly the position Lynsey (mother to Mindy’s pool boy) is in.

Lynsey and her husband bring in a moderate salary from his job and her businesses of jewelry making, relationship counseling, and their garage and basement house hack. For a long time, Lynsey assumed she would never be able to retire, but as her income has grown she’s realized that she not only can retire but retire early. 

Lynsey has a few key ways she could increase her business revenue: outsourcing, marketing, and scaling. Her husband also has a strong suspicion he’s underpaid, meaning a boost in income could be one ask away for him. The couple also wants to invest in more short-term rentals or buy another house hack property. But, of all the options they’re presented with, which one will push the needle?

In This Episode We Cover

Creating a “hype folder” so you can painlessly ask for a raise 

Shopping the sales and feeding a family of five for $700 per month

Creative house hacking by renting out basements, garages, and other dwelling areas

Using a self-directed 401(k) to invest in real estate and grow retirement savings 

What to do with a large amount of cash while you’re waiting to invest?

Outsourcing repetitive tasks in your business so you can scale

And So Much More!

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Life can be challenging at times. When you think you’re in a stable spot, the universe tends to throw you one (or many) curveballs. In the realm of financial education, the smart early decisions we make can help alleviate the stress of these curveballs. This has happened almost to the tee for today’s guest, Karen Ferrero.

Karen grew up in a small town to a middle-class family. She was a first-generation college graduate and worked throughout high school and college. She later took a job and began consulting in the tech world, which offered her a respectable salary. She got married and had two kids with her husband, but shortly after, her husband was paralyzed in a motorcycle accident. Not only that, her son was diagnosed with autism. 

Now, Karen had to sell her house, find a new accessible one, take her son to therapy every day, and continue working her full-time job. This put her in a sizable debt hole, but through strategic debt payoff and intelligent investing, Karen has come out on top. She still has a very high-paying job, a loving family and some very, very profitable investment accounts for her children that she started decades ago.

In This Episode We Cover

How to plan for when life changes your course by force 

The importance of having good insurance when you’re young 

Why you should always take advantage of the 401(k) match when presented to you 

Investing as early as you can to capitalize on massive gains 

Why you should put education accounts in a trust

The extra costs that come with taking care of special needs family members

And So Much More!

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Kari and her wife made some big moves over the past few years. They packed up their stuff and left the San Francisco Bay Area for a relocation in the midwest. Unlike the Bay Area, the Midwest has many affordable housing options with plenty of chances to house hack. So, that’s exactly what the couple did! They bought a duplex in rough condition, put in close to $80,000 of renovations, and now get $900 a month from the side they’re renting out.

Although this renovation allowed them to live for free, it put a $66,000 hole in their pockets, which they recently just paid off. Without much retirement savings or investments in general (save the house hack), Kari is wondering what she can do to maximize the extra $100,000 in after-tax income she and her wife bring in every year.

Should she go the index funds route, buy another rental, or help her wife pursue her dreams by investing in a restaurant? Scott and Mindy give Kari a lot of ideas in this episode, many of which could help you as well!

In This Episode We Cover

Using “strategic debt” to grow your investments and income 

Planning your future finances when trying to start a family 

Investing in your 401(k), Roth IRA, Self-Directed 401(k), and other investment accounts

Using the “Live in Flip” model to avoid paying capital gain taxes 

Why you shouldn’t diversify when you are in a low to moderate net worth category

And So Much More!

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Not everyone has the vagabond spirit of those who choose to optionally live out of their cars, trucks, or vans. While this isn’t up Scott and Mindy’s alley, it’s been perfectly fine for today’s guests Tien and Brandon. After deciding to end their lease before a road trip, Tien and Brandon found living in their specialty-built van wasn’t just habitable, but preferable for their lifestyle. This was especially true after paying pricey southern California rent.

All this happened after making some impressive financial moves; paying off $50k of loans in eight months, flipping their first house, and buying a small portfolio of duplexes. Tien and Brandon have made a spree of financially intelligent moves, pushing themselves into a high net worth category, all while living in one of the most beautiful places on earth.

As of March 2021, Tien and Brandon dismantled their truly remote lifestyle to settle into their first short-term rental house hack. They’ve been pulling in $8,000 a month (yes, a month) from their San Diego Airbnb property, which is not only covering their entire mortgage but paying them some profits to boot!

In This Episode We Cover

Paying off a large amount of student debt in a short period of time 

Finding side hustles that can support your saving and investing goals

Making a plan to retire early and investing in income streams that will make it a reality

Flipping a house without construction or real estate experience 

Investing out of state where you already have family/friends/relationships 

The hardest part of living in a van full-time (and its MAJOR benefits)

House hacking with a short-term rental 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Retiring early can be a daunting task. Not only do you have to do more, with less time, but you have to stay diligent on your budgeting, expense tracking, and investing if you want to hit your goal by a certain age. Today we talk to Lisa, who wants to retire next year, in her mid-50s. While most people think early retirement means retiring in your 20s and 30s, this isn’t necessarily true. Retiring 10 years early, like Lisa, is a massive accomplishment, but requires the same skills needed for retiring decades earlier.

Lisa has three pieces of property: a cash-flowing rental in pricey Boise, her primary residence in Washington, and a plot of land in North Idaho. She’s tinkered around with ideas of using her primary residence as a short-term rental, but unbeknownst to her is the fact that having a short-term rental could bankroll her retirement. She also has a sizable amount in retirement accounts, but none of those assets produce cash flow.

Will Lisa be able to retire using the 4% rule with her retirement accounts? Or, should she use this last year of employment to double down on cash-flowing assets like rental properties? 

In This Episode We Cover

Using the 4% rule to calculate how much you need to be invested to retire 

Leasing out your home as a short-term rental while you travel 

Choosing cash-flowing assets over assets that merely appreciate 

Calculating out your TRUE living expenses (with the Mindy Method!)

Profiting off of land purchases and when the right time to sell is

When the appropriate time to raise rents on a tenant is

And So Much More!

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Most college students know next to nothing about money. Even worse, many of them sign on to expensive student loans with almost no plan on how they’re going to pay it back. While this is the average, some people, like Nathan Kennedy, host of The New Money Podcast, did things differently.

Although he overspent a bit going out in college, Nathan graduated with a degree and $40,000 in cash, a MASSIVE amount for any college student. Through applying for grants, working at on-campus jobs, and collecting tip money as a bartender, Nathan was able to graduate in a solid position, allowing him to invest heavily in the stock market during the 2020 crash.

Now, Nathan teaches others how they can strengthen their financial position through hard work, planning, and constant content consumption. If you have children who are in high school, college, or are newly graduated, send them this episode so they can have a leg up on future finances! 

In This Episode We Cover

The importance of tracking your expenses and budgeting properly 

Vision boards, daily logs, and other ways to plan for your success 

Pursuing grants and scholarships WHILE school is in session

Becoming a constant content consumer 

Money mistakes that many college students make (and how to avoid them)

Making time for health, fitness, and no-phone relaxation 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

“Beware of little expenses; a small leak will sink a great ship.” This is the topic of today’s episode, where we interview Jenny for a Finance Friday review. Jenny is finishing up her fourth degree and has been working throughout grad school to help her family. Her husband brings in a sizable income, but he wants to retire in 2030 and spend more time with their (future) kids. 

Jenny has great control over her fixed expenses, but as for her variable expenses...not so much. Her family is consistently teetering between $1,000 a month and $2,400 a month in variable expenses, many of which can be resolved with some simple shopping tweaks (like leaving your credit card at home when you go to the grocery store). Luckily, they’ve invested a fair amount of their take-home pay, have a stellar 401(k) match, and are about to have dual incomes once Jenny is out of school. 

If you’re having trouble keeping a hold on your variable expenses, such as random Amazon shopping, tune in for this episode for advice on exactly what to do.

In This Episode We Cover

How to plan for retirement with two full-time incomes 

Paying off your home vs. investing in assets like index funds and real estate

Taking advantage of 401(k) matches and maxing out retirement accounts

Leveraging a future job to pay off student loans 

How to curtail your variable expenses and reduce “random spending”

Why someone with “mortgage anxiety” should be wary of real estate investing

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What do you think of when you think about retirement? Are you on a tropical island drinking fruity cocktails out of a coconut? If you dream about that sort of retirement, Steve Adcock may have some revealing words for you. Retirement isn’t just about doing nothing all day, it’s about exploring your passions, and sometimes working more than you did before, to accomplish things that truly matter to you.

Steve decided to leave his high-stress IT job after 11 years of work. It was eating away at him every day, and it got to the point where just going into work became a grueling weight on his shoulders. He knew from a few years before potential retirement that he had a choice: lavishly live his life now or live frugally and have financial freedom forever. He chose the latter and doesn't regret it for one second.

Now, Steve and his rocket scientist wife spend their time taking care of their completely self-reliant housing compound in Arizona. He has a lot more to accomplish, but for now, he’s enjoying his off-grid lifestyle, complete with solar panels, his own water well, and a brand new septic tank.

In This Episode We Cover

Why it’s important to have a financial plan (even if you won’t retire early) 

Working (lightly) in retirement so you can enjoy more freedom 

Tracking your spending meticulously so you know where every cent goes

Taking care of your health and wealth when given free time 

Spending in post-retirement, and how it differs from regular spending 

Why early retirement WON’T make you happy

And So Much More!

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Sometimes having a lot of cash can be dangerous. Would you rather be sitting on months (or even years) worth of emergency reserves or have your money be challenging inflation by sitting in investments like index funds or real estate? This is the question that many people have, and also one that today’s guest, Phil, is having as well.

Phil and his wife live in a relatively low cost area and bring in a very solid income. They’ve been maxing out HSAs, 401(k)s, and other accounts all while having a significant amount of cash on the sidelines, just waiting for the right investment. While Phil wants to go into an unconventional type of real estate investing, both Scott and Mindy believe he should focus on the long-term goals he has set for himself and find asset classes that fit within his strategy. 

In This Episode We Cover

How much is too much of an emergency fund?

Selling tradelines and the risks/rewards that come with it 

Why investing in traditional-layout houses presents you with multiple exit strategies 

Solo 401(k)s, IRAs, HSAs, and other retirement accounts 

Creating a reasonable timeline to act on an investment, instead of losing money to inflation

Understanding what a good rent-to-price ratio is for your area

And So Much More!

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A lot of people in the financial independence community successfully get out of debt, but not many of them get out of debt and then start a monthly six-figure side business. One person who has done that is Deacon Hayes. Deacon was raised by a single mother on welfare who taught Deacon that debt was a way of life. When Deacon married his wife, they both collectively realized that the only way for them to live the life they wanted to, was to get out of debt.

Deacon did whatever he could to pay off his debt. He delivered pizzas and resold furniture, all while working full time. Once he was out of debt, he decided his passion was in teaching others how to get rid of their debt, so he became a financial planner and started his website, Well Kept Wallet. His story was so well received that he was brought on to record with Fox and tell their audience about his debt-free journey.

Deacon left the financial planning world after realizing he didn’t want to just help the rich, but the average person who still struggled with debt. To subsidize his business, he started a website building business, but later automated this and kept the lion's share of the profit while doing very little work. He started an SEO (search engine optimization) business and did the exact same thing. Then as Well Kept Wallet was bringing in massive revenue numbers, he did the same, hiring another worker to fill his role so he could focus on what he loves. 

In This Episode We Cover

Getting rid of debt as fast as you can so you can start saving and investing

Foreclosures, land leases, and other real estate predicaments 

Making sure you keep a large emergency fund (especially if you’re an entrepreneur) 

How to hit “hockey stick” level growth and what to do when you want to step away

Firing yourself from your business and learning to outsource

How to establish self-worth after you “retire” 

And So Much More!

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Making too much money is a good problem to have, and it’s one that many people in the Bay Area experience. Today we talk to Laurin, a mother of two, making $281,000 a year when combining her salary with her husband’s. They’re doing everything right: paying off the mortgage, contributing to their 401(k)s, and saving up for an emergency reserve. 

With all these investments and income, Laurin is wondering whether or not her investing strategy is optimized. Her mortgage spans 15 years, so she’s dedicating a large amount every month to pay off her house before she retires. While some people prefer the financial security of not having a mortgage, others (like Scott), prefer having a mortgage for longer while investing in other assets. 

With the goal of enjoying her life more, Scott and Mindy bring up a handful of options that can help Laurin achieve a massive net worth by the time she is ready to retire. She could work less and contract more, she could refinance and invest for cash flow, she could look into real estate investing, all while she’s setting up a massive nest egg for herself upon retirement!

In This Episode We Cover

Always taking the 401(k) match your company offers (when available)

Using “event-based” planning when you’re closer to retirement age

Pre-tax retirement accounts vs. post-tax retirement accounts  

Saving for children’s college with a 529 plan 

The two main real estate investing traps to avoid when investing out of state

And So Much More!

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Dee Olateru doesn’t have the traditional FI story, but it didn’t take her long to catch onto the concepts that now allow her to live a life exactly how she sees fit. Dee immigrated to the United States from Nigeria when she was sixteen. Without the ability to get student loans, Dee had to work throughout school, apply for every scholarship available, and borrow money from friends and family to pay for her undergrad degree.

While she made it out of college without student debt, she still had some credit card debt that needed taking care of. She amassed $10,000+ in credit card debt to help her pay for necessities like groceries throughout her years in college. But now she had a business degree, so clearly, she went on to get a full-time job in her field, right? Actually, she didn’t. Dee graduated during the great recession and had to take a $10/hour job at a local factory. 

Dee says that many people don’t believe her about the factory job because of the high-level position she’s in now, but it taught her many valuable lessons. As Dee made more and more money, she started looking into finance blogs to see where she should be saving and investing. For the better part of a decade, Dee has been maxing out her Roth IRA, 401(k), and investing in individual accounts, all while she travels around the world!

In This Episode We Cover

Having a “debt payoff plan” so you know exactly how and when you can get rid of debt

Joining online communities as a “close circle” for financial debates and idea-sharing 

Maxing out your Roth, 401(k), and other retirement accounts as early as possible

Never falling into FOMO and only investing in assets you understand 

Seeing your financial journey as a way to “start with what you have”, not what you wish you had

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Investments galore! This week, we talk to Jeana and Scott, a couple with a hefty amount of investments under their belt. We know what you’re thinking, “what type of stocks and real estate are they investing in?” This is where you might be surprised. Jeana and Scott are investing in three gyms, a gas and oil investment, a documentary, a 24-unit apartment building, a 52-unit apartment building, a senior care business, and...a $20,000 dog! Seriously! This is one of the most diversified couples we have ever had on the show!

While it’s great to have investments spread out over multiple different asset classes, Scott and Mindy want to help the couple come up with a more systematized and formulaic approach to wealth building. Since they both have well-paying jobs, once they set up a “set it and forget it” type investment strategy, they won’t be too far away from reaching FI.

If you’ve ever had an interest in running a memory care facility, dog breeding, or investment clubs, this will be a great episode to listen in on!

In This Episode We Cover

Diversifying your investments into multiple different asset classes

Knowing which investments are likely to make a return and planning for those that won't

Setting up a system for wealth creation so you can develop an early retirement plan

Investing in multifamily real estate like apartment buildings and senior living homes

Using government benefits to maximize wealth as quickly as possible

Investing in an Airbnb property and which markets make the most sense for it

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Darius Smith always knew how to make money, but wasn’t very good at saving it. Growing up, he had jobs ranging from delivering phone books, to running paper routes, to even putting up eviction notices on homes. He opened his first bank account when he was around nine years old! So how did Darius end up with almost $170,000 in debt? An even better question may be, how did Darius pay off all that debt in only a few years?

Darius spent time at multiple different colleges, racking up $40,000 in student debt, then buying a Mustang, paying for a wedding, putting some charges on credit cards, and finally combining his wife’s debt with his. They started to use the “debt snowball” method, but after having to take out business loans, the debt grew even more.

This is when Darius decided that he and his wife needed a plan to conquer their finances. They moved into a friend’s extra room for cheaper rent, stopped going out as much, began working more than one job, and siphoned all the money they could into savings and debt payoff. As of July 2021, they are debt-free!

In This Episode We Cover

How to prepare to take on student debt (when needed)

Avoiding lifestyle creep and finding ways to lower your expenses 

The “reverse house hack” and renting a room for far cheaper living expenses 

Mortgage forbearance and student loan forbearance in 2021

“Isolating yourself” from friends or influences that will cause you to spend more

Having a money date with your partner and going over finances regularly

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

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Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Get Tickets to BPCon 2021

Net Worth Calculator

Debt Pay Off Plan

6 Month Spending Tracker

Sinking Funds Tracker

Lifetime Earnings Calculator

BiggerPockets Money Podcast 121 with Seth Jones

BiggerPockets Money Podcast 73 with Ramit Sethi

BiggerPockets Money Podcast 127 with Ramit Sethi

Check the full show notes here: https://www.biggerpockets.com/moneyshow221

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Entrepreneurs work long, stressful hours, and as a result, they get paid the big bucks. This is the position that Stephanie, a freelance Salesforce consultant is in. She makes a respectable income, bringing in $14,000 after tax! But, that income comes at a cost.

While Stephanie is currently contracting out work to a few part-time employees, she spends at least 50 hours per week on the business. She’d like to get to a point where she can step back and work 20 (or so) hours per week and have a systematized and growing business. She’s financially in a great place, with more than three years of expenses saved in cash, so she can take more risks with her business.

If you’re growing your own business, rental portfolio, or side-income stream, you may be in Stephanie's position in the future. Stick around to hear exactly what Scott (an active CEO) would do if he was in her shoes.

In This Episode We Cover

Time freedom or financial freedom, which is more important?

Taking your hands off the reins and letting your business grow 

Subcontracting out work so you can focus on leading a business 

Firing clients who aren’t the best fit for your business 

Creating systems and procedures so your business can become scalable and saleable 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You may have heard the term “real estate syndication” thrown out quite a lot over the past few years. It seems like almost every real estate investor is either starting a real estate syndication or investing in one. So what’s all the hype about? Is this an investment opportunity that you’re missing out on, and if so, is it truly passive as many people claim?

We’ve brought the master flipper, rehab estimator, and syndicator himself, J Scott, back to the BiggerPockets Money Podcast so he can share some information (and advice) on real estate syndications. J walks through a handful of points worth examining before investing in syndications. We talk about what a real estate syndication is, where to find syndications, how to validate the syndicators themselves, what a limited partner is, what a general partner is, and more.

The most valuable part of this entire episode is about researching the syndication deal itself. Where is it located, what is the structure, who’s running it? These are all questions you should ask, along with some other key questions like:

What is the team’s track record, reputation, experience?

What is the location, risks, population size, employment, wage growth?

On the deal, what do the returns look like, what are the big risks?

Do they have an investor presentation?

What’s the minimum investment?

Are there capital calls? How do they deal with capital calls? Have they required capital calls in the past?

What are their accreditation requirements?

Can you get better terms in exchange for a larger investment?

How frequent are the distributions? Quarterly, monthly, yearly?

When will distributions start? 

Will they be doing a cost segregation study?

What fees are they receiving?

When will they give updates? Monthly, quarterly?

Can you invest using a 1031 or an IRA?

In This Episode We Cover

What is a real estate syndication and who qualifies to invest in one?

What an accredited investor is and the qualifications behind it?

Where can you find syndicators?

Whether or not investors have liability if a deal goes bad

Cap rates, NOI, and valuations on large deals

How to research a syndication deal

Syndications vs. funds vs. REITs

What happens if a syndication runs out of money?

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Combining finances can be complicated, but what’s even more complicated is combining one salary with two inconsistent business accounts. How do you manage the household’s budget when you don’t know what will be coming in every month? This is the question Roshan and her husband have for us today.

Roshan works as a teacher making a very steady income and has access to retirement plans like her pension and a 457(b). Her husband, on the other hand, runs a seasonal flower business that brings in $30,000 in only five weeks, and an ecommerce store with a bit more consistent income. Together, they want to develop a formula that will help them plan for early retirement, while also being able to take some risks and reinvest in their businesses.

Scott and Mindy not only walk through the regular finance aspects like spending, retirement planning, and saving, but also more relationship-based financial aspects like having money dates, keeping a shared budget, and having a retirement plan that works with your family’s lifestyle. 

In This Episode We Cover

What to do if you have inconsistent business income 

Budgeting to cut down on items like eating out and random shopping

Creating “distributions” from your business and giving yourself a salary 

Investing in retirement accounts like your Roth IRA, 457(b), 403(b), and more

Creating a “financial formula” that will lead to you to (early) retirement 

Having money dates and staying on top of finances as a couple

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Rahkim Sabree “aspired to be poor” when he was growing up. He saw his parents collecting section 8 housing vouchers, getting food stamps, and thought that this was the way life was. He didn’t grow up around many homeowners. All of his friends lived in apartment rentals and were in the same financial situation as him. There were no “financial literacy talks” at Rahkim's dinner table.

It wasn’t until Rahkim left college and got a banking job that he decided to look at where his money was going and what it was doing for him. He started reading books like Rich Dad Poor Dad and The Millionaire Next Door, which shifted his mindset and gave him the foundation to chase financial freedom. He bought a duplex, house hacked it, and started throwing all the money he could into investments.

As his own financial knowledge began to grow, he was able to share what he learned with others. He’s written two books, spoken at TEDx talks, and been invited to numerous conferences to speak. This didn’t bode well with his employer, who would consistently ask him whether his outside-of-work activities were clashing with his nine-to-five responsibilities. After hearing this over and over again, he decided to “fire his boss” and focus on building his own income, all without an emergency reserve stashed away! 

In This Episode We Cover

Why it’s so difficult to break out of poverty without financial education

Deciding to house hack so your mortgage can be offset 

Why you should always keep a safety reserve in case of emergencies 

Maxing out your 401(k), HSA, and ESPP contributions 

Thinking of low-interest credit as another type of safety reserve

Knowing when the appropriate time to leave your W2 is 

And So Much More!

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Amanda is making a teacher’s salary and spending her weekends working a part-time job at a grocery store. She contributes to her retirement accounts, but she could be sitting on a passive income gold mine that she doesn’t realize. 

Attached to Amanda’s home are a casita and a mother-in-law suite. The casita is rented out to long-term tenants and the mother-in-law suite has been used as a short-term rental for some time. But what if instead of keeping her casita as a long-term rental, she converted it into an Airbnb? Well, Amanda could potentially see a rent increase of almost 3x what she currently is renting at!

With this house hacking model that Amanda is using, she’s able to get owner-occupied financing with lower interest rates and better terms. So what if she could start doing this with other houses and slowly grow a short-term rental empire? As Scott and Mindy discuss, it’s possible! 

In This Episode We Cover

The importance of side-income streams when you work a lower-paying job

Turning extra bedrooms into short-term rental income

House hacking and the benefits of owner-occupied financing 

Calculating your hourly rate for different tasks and focusing on those with the highest ROI

Chasing financial freedom and the importance of using time how you see fit

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Get Tickets to BPCon 2021

Short-Term and Vacation Rental Discussion

Avery Carl’s Short-Term Rental Interview

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After years and years of working in licensing, Diania Merriam opened up her credit report and saw that she was (collectively) $30,000 in debt. This forced her to ask the question, “what am I working for?” It made sense at the moment: you get your paycheck, you can go out to a fancy dinner, you get another paycheck, you can buy yourself something nice. But Diania wasn’t happy, or at least as happy as she thought she’d be.

She realized that she didn’t want to be stuck in a job she had to go to every day. She wanted autonomy, freedom, and financial independence that would allow her to rule over her schedule and pursue her passions and interests. So, she went to work and started saving whatever she could. She stopped eating out, started cooking all her meals, moved to a more inexpensive city, bought a house and house hacked, heavily invested in retirement, and did everything right.

Now, she’s self-employed, hosting the Optimal Finance Daily podcast and the EconoMe Conference in Cincinnati. She was able to create her dream roles because she came from a position of financial strength, she also had a plan in mind and knew what her “worst-case scenario” looked like.

In This Episode We Cover

Getting out of consumer and student debt as quickly as possible

Minimizing expenses and maximizing income to increase savings rates

Building a strong financial runway so you can start your own business

Buying a house and house hacking by renting per room

Understanding your “worst-case scenario” before you take the leap into entrepreneurialism

Finding your passions and cementing what you want to do when you reach FI

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Get Tickets to BPCon 2021

The Shockingly Simple Math Behind Early Retirement

Get Tickets to the EconoMe Conference and USE CODE BIGGERPOCKETS for a Discount

BiggerPockets Money Podcast 01 with Mr. Money Mustache

BiggerPockets Money Podcast 120 with Michael Kitces

BiggerPockets Money Podcast 153 with Bill Bengen

Grab the House Hacking Strategy

Check the full show notes here: https://www.biggerpockets.com/moneyshow215

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s hard to imagine what someone is going through once they’re given a cancer diagnosis. The last thing many people want to think about during such a troubling time is finances. This was true for Zachary, who’s combined net worth with his partner more than doubled while he was supporting her throughout her chemotherapy and cancer surgeries.

Even though it was a medically troubling year, Zachary and his partner were able to almost double their income, while keeping expenses fairly low. This allowed them to set a 50% savings rate and keep enough to pay for treatments, retirement investing, and even save for IVF (in vitro fertilization). Since IVF is such an expensive treatment, Zachary wants to know how he can best position himself to pay for it while his partner reduces her time at work to take care of their future children.

In This Episode We Cover

Becoming cancer free after a stage three diagnosis (wooooo!)

Doubling your income by making intelligent career changes

Short-term rentals vs. long-term rentals and the risks of both

Planning for medical expenses like IVF

Contributing to HSAs, Roth IRAs, and 401(k)s

Managing a 10-bedroom “sorority house” 

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Get Tickets to BPCon 2021

You Need a Budget

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Growing up in Mexico, Saul Tijerina didn’t fully understand the concept of financing. It wasn’t that he couldn’t conceptualize financing, it was more that he wasn’t around it enough to think of it as an option. In Mexico, everything was sold for cash, whether it was a home, a car, or a new TV. Owning something meant that you really “owned it”, not just “I’m paying this off.”

It’s no surprise that when Saul came to the United States to work, he was in for a financial shock. New car? Finance it. New house? Finance it. Want to eat out every day? Charge it to your credit card and finance it! This was the cycle that Saul was in for close to two decades, before discovering the FI movement.

Once he started digging around online forums, blogs, and YouTube channels, he found a community that not only hit financial independence but hit it at an impressively young age. Now, about two years into his FI journey, Saul has made monumental progress with saving and investing. He’s on track to retire as a millionaire in 2026 and will live off of his taxable accounts until he is old enough to take out funds from his tax-advantaged investments.

In This Episode We Cover

Why lifestyle creep can be incredibly dangerous for young adults 

Paying attention to the interest credit cards charge and never falling into high-interest debt

Why financing a brand new car can be a huge blow to future wealth accumulation

Staying away from the “two-income trap” and keeping expenses low

Roth IRAs, 401(k)s, Conversion Ladders, and other retirement accounts

Saul’s 72 Hour Rule for spending (especially online shopping)

How to get your partner on board for FI when they may not know about financial possibilities 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Starting a strong financial position in your youth is probably the most important thing you can do to hit financial independence. Sometimes that strong position includes maxing out retirement accounts, like Roth IRAs, 401(k)s, or even HSAs (health savings account), but sometimes, it doesn’t. Scott and Mindy talk to Kirsten about the potential option of pausing her retirement contributions to buy a duplex so she can house hack.

While this may seem counterintuitive, pausing retirement contributions isn't always a bad thing. This is especially true if you’re trying to do something that will radically change your income or expenses, allowing you to invest more into retirement later on. 

This episode runs through house hacking, retirement contributions, FHA rules for owner-occupied loans, how to graduate with no debt, and when the best time to have a “money date” is. It doesn’t matter if you’re in your early 20s or mid-40s, these principles are key to having a financially successful life.

In This Episode We Cover

How to aggressively invest so you can retire young 

The importance of side-income and why you should have multiple streams of income

Roth IRAs, 401(k)s, and HSAs (health savings accounts) 

Graduating from college debt-free

Whether or not life insurance is necessary for young people

Having “money talks” and “money dates” with your partner 

House hacking and using real estate to catapult your wealth

And So Much More!

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It’s nice to hear a fan of the BiggerPockets Money Show talk about how they are on the path to financial freedom. It’s even nicer when we hear that the fan, Melissa Yi, went from a negative net worth to now $100k+ due to some simple tips from Scott and Mindy.

Melissa had stints in her childhood where she was facing homelessness, not knowing where her next meal was coming from. She worked hard after high school and ended up at a job that offered to pay for her college education. A year away from graduating, she made the decision to quit, without savings, another job lined up, or a way to pay for school. She took out student loans, auto loans, and sunk into credit card debt.

At one point, Melissa looked around and realized she had a lot of stuff. Stuff that wasn’t doing anything for her, except for filling up her garage. She sold what she could, started bringing in side income streams, and stopped eating out. These small changes allowed her to slowly pay off her debt and get to a positive net worth. Now, she’s at the $100k+ point and slowly coasting her way to financial independence! 

In This Episode We Cover

The importance of financial education when growing up 

Taking advantage of company-sponsored tuition reimbursement 

Why you should never cash out your 401(k) or other retirement accounts 

Credit card debt and why it’s so bad for uninformed consumers 

Using a live in flip to make a killer profit while paying $0 in taxes

Setting up retirement accounts and maxing them out whenever possible

And So Much More!

Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Scott's Instagram

Mindy's Twitter

Melissa’s Facebook Post

Cutting Your Grocery Bill in Half with Erin Chase from $5 Dinners

 Check the full show notes here: https://www.biggerpockets.com/moneyshow210

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Teachers do a lot more than we give them credit for (as shown throughout the past year and a half), but sadly, they don’t get paid terribly high salaries. Today’s guest, Stephanie, is a music teacher for young children and is debating whether or not she should make a career change to up her income to higher levels. Stephanie has a good amount in savings and investments but wants to take on a duplex to house hack and save money on monthly housing costs.

Scott and Mindy walk through the pros and cons of house hacking and answer questions about live in flips. The best part about Stephanie’s story is that she has the option to move anywhere in the United States. She has nothing holding her to New Jersey and may be keen to move out due to the high taxes she has to pay.

With the combination of a career change and the potential to do a live in flip/house hack on the horizon, Stephanie has a lot of great (and broad) options to help her reach financial independence!

In This Episode We Cover

Changing careers to maximize financial independence goals

Starting a side hustle so you can earn extra income

Roth IRAs, 401(k)s, and Solo IRAs

House hacking as a means to not only cut housing expenses but build wealth

Who should (and shouldn’t) do a live in flip

Should you pay off low-interest debt or invest?

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Growing up, Bola Sokunbi had some serious financial influence from her parents. Her father would tell her “Don’t be penny wise and pound foolish” while her mom showed her the importance of being an independent woman who could financially stand on her own. They both influenced her to become the financial author, mentor, and teacher she is today with Clever Girl Finance.

Bola split her youth between Europe and Africa, and when given the chance to go to college back in Europe, her mom cashed out her retirement savings to give her daughter the gift of education. Bola worked through college and graduated with zero debt! She then went on to live in New York City, making $54,000 a year at her first job, which to her, was like getting a million dollars!

As she saved up to buy her first home and later started investing in more growing assets, she saw her friends who made 3x her salary, spend all their money on designer handbags, expensive dinners, and luxury apartments. She knew she didn’t want to be surrounded by financially irresponsible people, so she distanced herself from those friends, and began her journey to FI.

Now, Bola has a business pulling in six figures every month! She teaches women how they can start investing, have financial confidence, and live life on their terms. 

In This Episode We Cover

The importance of education, even in today’s world 

The great sacrifices Bola’s parents made for her to be successful

Starting side income streams so you can invest and save more

Selling the investments you don’t feel comfortable with, and why everyone doesn’t need to be a landlord

Saving a massive financial runway before quitting your full-time job

Starting Clever Girl Finance and her new book The Side Hustle Guide 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We’ve said it before and we’ll say it again: it’s never too early to start your journey to financial independence. Today we talk to Mackenzie, a 23-year-old college graduate, working a government job and paying for only minor expenses. She has a serious emergency fund she’s managed to save up and has questions on house hacking, setting up retirement accounts, and the fastest way to get to FI.

When you start your financial journey at such a young age, you have many different opportunities. Even just maxing out your Roth every year may be enough to make you a tax-free millionaire, but what about more aggressive strategies like owning rental properties or even shooting for a far higher-paying job? These are all questions that Mackenzie wants answers to, so we have Scott and Mindy here to help!

In This Episode We Cover

Living at home when you’re young to save money on rent and food

Graduating debt-free so you can come out of college ready to build wealth

TSP accounts, Roth accounts, and the 457 plan

House hacking as a way to fund future investments

Looking for other jobs or side income that can help you increase your investing rate

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Part of the reason we started the BiggerPockets Money Show was to share financial stories from all different backgrounds, giving you, the listener, confidence to reach your financial goals regardless of the stage you’re at in life. There’s no better story or person to personify this than Dr. Lakisha Simmons. 

Lakisha grew up in Indianapolis, born to teenage parents who didn’t have much. She spent the majority of her youth living at different family members’ houses, shopping bargains, and being content with having enough to get by. She started working at 14 years old and has fond memories of taking her paychecks to the bank so she could deposit them in her own checking account. 

When Lakisha hit some road bumps in her personal life, she put her children first and sold her home, started renting, and dove heavily into FI. She managed to hit a 60% savings rate as a single mother, thanks to her helpful side-income streams. Now, after almost 3 decades of working, she’s ready to retire, spending time with her children and teaching other women how they can do the same. 

In This Episode We Cover

How growing up in poverty can lead to living frugally in the future

Whether or not student loans are worth it for the paycheck

Looking at ALL your bills and only paying for things that bring you value

Renting vs. owning a home, and how it affects your bottom line

Taking advantage of 457(b) plans for government employees 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

For most people, there tends to be a specific point in your life when you think, “I want to travel” or “I want to spend time pursuing my passions”. For today’s guest Ainsley, this happened about two years ago.

She has spent the last decade or so being a stay-at-home mom, but is looking to up her household income by getting a job that will provide an extra $36,000 a year to the family budget. Her main question: what should this extra income be used for?

Mindy and Scott come up with a step-by-step approach to hit financial freedom, even if you don’t have a large amount of cash or investments. Lucky for Ainsley, her home in the Pacific Northwest appreciated close to $150,000 in just the past year alone! Plus, she also has retirement accounts that she and her husband actively contribute to.

While they’re doing many things right, they could improve on some simple things like boosting their emergency fund, starting an HSA, contributing to a Roth IRA, and getting their income up as much as possible. This is a great episode for those who don’t want to get into real estate, and instead would rather have passive investments growing on the side!

In This Episode We Cover

Mindy and Scott’s 7-step plan to hit financial freedom 

The importance of keeping a healthy emergency fund (and where to store it)

The pros and cons of taking out a HELOC on your primary residence 

Always getting the 401(k) match whenever presented with one

ESPPs (employee stock purchase plans) and how to take advantage of them 

Roth IRAs, Roth 401(k)s, and other tax-deferred accounts

Investing in a regular brokerage account once you have maxed out retirement 

And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are lots of twists and turns throughout every investor's journey, but maybe not as many as Zeona McIntyre’s. Growing up with the words of Suze Orman in her ear, Zeona knew that there were a few things she had to do, like max out her Roth IRA every year. It wasn’t until Zeona was talking to a friend who told her about Airbnb arbitrage that she realized a future in real estate investing may be the most successful.

Before there were many short-term rental laws, people would Airbnb out of their own rented apartment, often without the landlord’s permission. Before you go off on Zeona in the comments, know that she does not do this anymore, and a few of her landlords were surprisingly okay with the plan. Since then, she has purchased 11 doors that she rents out, both to short and long-term tenants. 

You’ll hear how Zeona used private funding, an unfortunately-fortune life insurance payment, and many other creative methods to get her to financial independence in just 2 years!

In This Episode We Cover

• Airbnb arbitraging and why it was so popular in the early days of short-term rentals
• Paying off student debt but feeling like you’re not “moving the needle”
• Why it’s so important to consume financial information at the beginning of your career
• Dealing with the death of a loved one, and finding ways to honor their memory
• COVID’s impact on Airbnb and the short-term market in general
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We all know someone who hustles. Maybe it’s your sibling or your friend, or maybe you’re the hustler in your group. Those who hustle to make more money seem to always find new ways to bring in more cash, and that’s exactly what today’s guest, Alicia, is doing. Alicia jokes that she has 2-4 jobs, because in the day she’s working 65 hours a week at a media company, but is also a “saloon girl” and professional singer on the side. How many moms do you know that can ride a mechanical bull? Well, Alicia can!

Alicia recently purchased a rental property in Detroit that is giving her a 20% return! This is far higher than most real estate investors anticipate, and for her, it’s a blessing on her path to hitting passive FI. She was able to buy this rental in cash with a 401(k) loan, but with some taxes looming on the horizon, Alicia is asking whether or not paying off the debt or buying another property is the best move to hit her financial freedom goals.

In This Episode We Cover

• 401(k) loans and when (or when not) they’re appropriate to use for investment purposes
• Getting 20% ROI with section 8 tenants in Detroit
• Why side income streams are important for any new or established investor
• How live in flips still provide great returns even in a hot market
• Knowing which debts to pay off slowly and which debts to get rid of fast
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Growing Your 401k vs. Liquidating It to Invest in Real Estate
• Is a Live In Flip Right for You? Here’s How to Tell
• Feline Good Social Club

Check the full show notes here: https://www.biggerpockets.com/moneyshow204

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What’s your excuse for not hitting financial freedom? Maybe you work at a low paying job, maybe you only have one income for your household, or maybe you’re caring for a few kids, limiting the income you can save and invest. Prepare to have your excuses obliterated, because today we’re talking to Rob and Sam, who raised their 14 children on one income alone. And we aren’t talking about a $500k per year income, we’re talking about a median income!

Rob and Sam always wanted a big family, and luckily, they were raised in frugal households, allowing them to save every penny, shop the deals, and have a budget. While Sam was at home raising the children, Rob was out working and slowly paying off their house early, without Sam’s knowledge. One day, Rob told Sam that the house was paid off, which came as a huge surprise to her!

He had also been maxing out their Roth IRAs, his 401(k), and their HSAs. Rob was doing all this while comfortably raising 14 children. How is that even possible? Well, you can learn all about their tips, tricks, and budgeting tactics by buying their new book: A Catholic Guide to Spending Less and Living More: Advice from a Debt-Free Family of 16! 

In This Episode We Cover

• Setting up budgeting, expense tracking, and being deliberate with your spending
• Maxing out your 401(k) match, your Roth IRA, and your HSA
• Being frugal so you have more money to spend on the important things
• Fixing up a foreclosed house to save money when shopping for a home
• Getting out of debt so you can tackle bigger (good) debts
• Becoming intentional with your spending, saving, and investing
• Raising a family of 16 with a single income
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Mad Fientist

Check the full show notes here: https://www.biggerpockets.com/moneyshow203

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most 21-year-olds aren’t thinking about Roth IRAs, early retirement, house hacking, or graduating college debt-free. But today’s guest, Anthony, is! Anthony is currently a student in community college, preparing to transfer to a four-year college next year. He has a paid-off car, no credit card debt, and makes around $2,000 a month, with $800 or so as extra income each month.

Anthony is wondering where the best place to put his extra income is. Should he invest in his Roth or should he save up money for college costs? Alternatively, he could house hack which could cash flow him through college and allow him to leave with a degree and a profitable rental property. 

Scott and Mindy walk through the multiple different options Anthony has and push him to see what he can achieve within the next few years to put him on a path towards financial independence! 

In This Episode We Cover

• Planning for retirement at a very early age
• Maxing out your Roth IRA and 401(k) match every year you can
• Paying off credit card debt and car loans 
• Finding side income streams like driving for Uber 
• House hacking during college and leaving with a cash-flowing rental 
• Keeping your spending habits low (especially as you’re starting out)
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How do you think about debt? Most of us would shudder to think of having high-interest consumer debt in our lives, and for good reason. Consumer debt can lead to a detrimental financial future and tons of wasted money on interest. But what about good debt? Debt to buy rental properties or help an aspiring business. How do you feel about that debt?

Today we’re joined by FI chaser, and friend of Mindy, Jake Simon. Jake was raised in a frugal household. He learned to spend less than he made, shop the bargains, work hard, and NOT go into debt. Jake had been investing money every month in his 401(k), and after that, began putting the extra money he had into a bank account. After listening to The Mad Fientist (he’s been on our show before too), Jake knew that there was a much better place his money could be stored.

With the relocation of his job every few years, Jake became more and more interested in real estate, prompting him to start doing live-in-flips! After maxing out retirement accounts, selling his flips for heavy profits, and still having a large savings rate every month, he decided to conquer his fear of debt, and use debt to buy rental properties!

In This Episode We Cover

• The difference between good debt and bad debt 
• Storing your money in a long-term investment, as opposed to keeping it in cash
• Why live-in-flips are not only practical but profitable too
• Understanding your profit margins and buying deals that are worth it for you
• Buying your children a “rental property college fund”
• Who should (and shouldn’t) be doing their own rehab work
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• BiggerPockets Money Podcast 35 with Craig Curelop
• Mad Fientist
• ChooseFI

Check the full show notes here: https://www.biggerpockets.com/moneyshow201

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We love when guests come back on the show, especially when that guest is Kyle Mast. You may have heard him back on episodes 41 & 84, but now he’s here to celebrate our 200th episode with us! Scott and Mindy have come up with their own questions to ask Kyle ranging from retirement accounts, to asset allocation, to the future of cryptocurrency, and more.

If you’re worried about retirement, Kyle has you covered. We go over some great topics like whether you should choose a traditional 401(k) or a Roth 401(k). From there, we talk about whether a pre-tax account or a post-tax account makes the most sense, based on your income, tax bracket, job security, and more. We’ll also touch on HSA (health savings accounts) which are a fan favorite as well as a tried-and-true winner for almost anyone who qualifies for one.

Post-retirement is another topic that rarely gets discussed on the show (since we’re all so focused on getting wealthy, not deploying that wealth). If you’re worried about hitting required minimum distributions soon, you may have the ability to save hundreds of thousands of dollars in the long run with some tips from Kyle. We’ll also talk about diversifying your accounts now so you can be nicely positioned upon retirement.

Lastly, we talk about inflation, rising house prices, tech stocks, and (Mindy’s favorite, of course) cryptocurrency. All of these are incredibly relevant right now and it’s great to hear from someone as neutral as Kyle on the pros and cons of each.

In This Episode We Cover

• Traditional 401(k)s vs. Roth 401(k)s and the tax implications of both
• Looking at your retirement accounts from a long or short term position
• Taking the 401(k) match whenever a company allows you to
• Required minimum distributions and the 4% rule
• Solo 401(k)s and and retirement accounts for entrepreneurs 
• Cryptocurrency, stocks, real estate, and precious metal allocation
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• BiggerPockets Money Podcast 41
• BiggerPockets Money Podcast 84
• BiggerPockets Money Podcast 118
• Mad Fientist
• BiggerPockets Money Podcast 120 with Michael Kitces
• Nerd's Eye View

Check the full show notes here: https://www.biggerpockets.com/moneyshow200

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The average American takes a long time to pay off debt, especially student loan debt. These amounts can vary, some people have a few thousand in student loan debt, others have tens of thousands, but what about $521,741 in student debt? Would you be able to pay off over half a million dollars in student loans, all while trying to buy a house and regularly invest? This is exactly what Ty from Debt Ascent did, and he did it quite successfully.

Ty is an engineer and his wife is a dentist, so they both are in high-income careers with advanced degrees. Ty makes the argument that their degrees are a good investment, as they’ve been able to make $400,000+ as a couple, years after finishing school. This is a very high income, and with smart money management (as you’ll hear in the show), the high debt can be easily argued as being worth it.

You’ll also hear from Ty on the importance of tracking your spending (something both Mindy and Scott have been fans of for a long, long time). Tracking the spending for Ty and his wife made it simple and easy for them to live off of one income alone, while dedicating the other income completely towards paying off debt and setting up other income streams.

As of now, they are debt-free, with another $500,000+ in assets! Talk about financial efficiency! 

In This Episode We Cover

• When student debt is (and isn’t) worth it for a future career
• Why it’s harder for lower-income households to pay off debt
• The importance of tracking your spending (via YNAB or manual tracking)
• Paying for your future self, your current self, and your past self
• Staying away from the “two-income trap” 
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Mr. Money Mustache
• YNAB
• BiggerPockets Money Podcast 106 with Megan Gorman
• BiggerPockets Money Podcast 20 with JL Collins
• Debt Ascent Net Worth

 Check the full show notes here: https://www.biggerpockets.com/moneyshow199

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Many of you know that Mindy loves live-in-flips, and although she can definitely swing a hammer, she doesn’t have the skills of a finish carpenter, but today’s guests, Serafina & Darrin, do! Serafina and Darrin were both working at non-profits, but over the last year have transitioned to running their own business named Carlucci Woodworking. Serafina takes care of the bookkeeping while Darrin takes care of the carpentry. They’re a dynamic duo!

All this is happening while they are trying to build their dream home out in the country. If you’ve ever custom-built a house you’ll know how time-intensive and (often) expensive it can be. Serafina & Darrin want to know whether or not Darrin’s high hourly rate would be better served doing jobs, as opposed to working on their own home.

With dreams of sailing around the world with their children, hitting a not too far away FI number, and living in their countryside getaway, they’ll need to focus on optimizing their business, getting connections, and keeping up with their investing! 

In This Episode We Cover

• The pros and cons of leaving your job for self-employment
• How to optimize your business so you’re working billable hours whenever possible
• Roth IRAs, traditional IRAs, and pensions 
• Setting up your emergency reserve so you always feel financially secure
• Using your business in creative ways (to make more money!)
• Knowing the ARV of a new construction (even if it’s custom)
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Mad Fientist
• Etsy
• Yelp
• HomeAdvisor
• HSA – The Ultimate Retirement Account
• Roth Conversion Ladders

Check the full show notes here: https://www.biggerpockets.com/moneyshow198

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

There are a lot of excuses we hear from people as to why they can’t reach financial independence. They needed that new car, they needed that nicer apartment, they needed the expensive vacations. Often, this is what we hear from people making a high income, unlike today’s guest, non-profit worker Nate Forbes.

Nate knew that he liked working jobs that tended to pay less, and with the support of his wife, he stayed at them. When his wife was ready to be a stay-at-home mom, Nate took a job with more pay but was by no means a high-income position. Even with Nate being the only breadwinner for the family, he and his wife were able to max out their retirement accounts, buy rental properties, and start doing BRRRRs.

Since Nate was raised with strong frugality and not much of a consumer mindset, he’s used to living below his means, but his story of wealth accumulation is truly inspiring. From selling vintage clothing to living in a collective household, to hunting down an early 90s Honda Civic to get 50mpg on long commutes, Nate has done almost everything he can to live a life he loves all while reaching “coast” FI!

In This Episode We Cover

• The importance of early financial education for young children
• Living below your means and striving to invest every year you can
• Keeping the job you love and finding ways to make more money on the side
• Maxing out your Roth and other retirement accounts
• BRRRR investing and doing live-in flips
• Realizing that life isn’t about math, and leverage may not be necessary for success
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Fuel Economy
• Dave Ramsey
• Mr. Money Mustache
• Mad Fientist

Check the full show notes here: https://www.biggerpockets.com/moneyshow197

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Getting out of debt can be very empowering, which is exactly how Azar and Jeffrey felt when they paid off $83,000 of debt in under 3 years! They thought it may be the best time to start investing in real estate, but with a surprise baby on the way, they need to be sure they’re prioritizing stability over growth. Since they’re in such a great position, they should be able to do both!

Azar works as a school nurse bringing in a respectable salary, while Jeffrey gets disability payments. Both have pensions and retirement accounts, but they want something more than just those retirement options. For them, real estate seems like the next step. They’ve taken out a HELOC (home equity line of credit) in order to buy their next property, but need advice on whether or not it’s a smart move to stockpile cash for the new baby or go ahead with the real estate purchase.

In This Episode We Cover

• Getting yourself out of high consumer debt 
• Refinancing so you can take advantage of far lower interest rates
• How much should you have in an emergency fund for a family of five?
• The potential benefits of paying off your primary residence before buying rentals
• Why HELOCs should be used for short term debt only
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter

Check the full show notes here: https://www.biggerpockets.com/moneyshow196

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Student loans can often drag people into debt, especially when chasing more than one degree. But here’s an unusual story: Brenda Olmost, PhD student, nurse practitioner, and member of the FIRE community is graduating with NO debt. Amazing right? Brenda has worked her tail off over the past decade getting scholarships, living below her means, and working whenever she can so she graduates her program with no debt.

Not only has Brenda done a fantastic job making extra income, she’s been investing on the side! She has a growing 401(k), a maxed out Roth IRA, and 2 rental properties. At 31, she’s in a phenomenal position to reach financial independence. Lucky for her, she loves her career, so even if she does hit her FI number, she’ll still be bringing in the dough to pursue more and more investment opportunities.

If you want to hear more from Brenda, you can check out her podcast, Minority Millennial Money where she talks about budgeting, investing, saving, career, and relationships!

In This Episode We Cover

• Staying off the hedonic treadmill and living below your means
• Pursuing high demand, high-income careers
• Getting scholarships and working on the side to pay for school
• Why you SHOULDN’T buy that new car you want
• Hitting “Coast FI” in your early 30s
• Using your extra income to invest, buy rental properties, and save
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• BiggerPockets Money Podcast 169
• BiggerPockets Money Podcast 81
• BiggerPockets Money Podcast 24

Check the full show notes here: https://www.biggerpockets.com/moneyshow195

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s a common concern among many Americans on whether or not they can retire on a timeline they feel comfortable with. In this episode, we talk to Deb, who’s having some of those same concerns. She has over $100,000 in assets (not including the house) and wants to be sure that she can provide a great life for her children all while saving more and more for retirement.

Deb has read so many money and financial independence forums about mid twenty year olds with six-figure incomes and five-figure savings per month. Many people read about these stories and feel like they can’t compare, but if you’re in Deb’s situation, you’re already doing well with retirement savings! It can be dangerous to compare your journey to others who’s backstory you don’t know. That’s why we encourage everyone to save, invest, and spend at a rate that works for their goals!

In This Episode We Cover

• Finding side-income sources and business that will help you with retirement savings
• Keeping an expense tracker and budget so you know exactly what you’re spending
• Having a sizeable emergency fund so you’re never in a bad position
• Giving every dollar a purpose in your budget
• Setting up your children with Roth IRAs so they can start investing sooner
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Part of the mission of the BiggerPockets Money Show is to share journeys from all walks of life. Our guests show that no matter where you’re at, you can reach financial freedom and enjoy your life on your terms. Today’s guest, T Christopher Colton, is a shining example of pulling yourself out of the depths and into the light.

Chris never liked school, and was spanked all throughout elementary and middle school for failing to pay attention in class. He was told he needed to go to college, but didn’t have the passion for higher learning that other classmates did. He ran away from home multiple times, ended up being homeless, and addicted to drugs. He had stints as a car salesman, before going into carpentry.

With the help of his wife, Chris was able to get off the streets and live a stable life with his full time income. But, he wanted more. He became an electrician apprentice and started doing side work to help pay off the $100,000+ debt he had accumulated. Thankfully, he found out about financial independence through Dave Ramsey, putting him on a path to reject consumer debt, go hard on retirement accounts, and bring in more income.

In This Episode We Cover

• The financial danger of buying a new car, and the costs that come with it
• Selling everything to get out of debt fast
• Moving states and reducing costs of living dramatically
• 401(k)s, IRAs, and Roth IRAs for retirement
• Starting a side business and having your W2 pay for your everyday expenses
• Getting your children on a path to success with early financial independence
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• WECA Apprenticeship
• CarMax
• The Ramsey Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow193

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In many of our lives, we make a decent salary, we try to save and invest, but we still feel bogged down by debt. How is it possible to feel “broke” while making a great salary? That is the question that Tiara, today’s guest, is asking. Tiara works as a park ranger in Texas, but wants to take a break in the next few years to go on a big travelling holiday.

This is a great idea! She’s worked very hard, managed to get some assets under her name, and needs a break. But before she can go out and explore the world, she needs to take care of some high-interest credit card debt eating away at her bank account and her financial sanity. 

Tiara is also sitting on a rental property that has appreciated since she bought it. This rental property used to be her primary residence, so she still has some emotional ties to it, but with her current needs growing greater than her need to hang on to a negative cash-flowing rental, it may be time to sell the house. 

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Many of us have had the benefit of growing up in households where our parents taught us about money, saving, and investing. Angela Rozmyn was raised in one of these households, and when she wanted something like a bunk bed, her parents got her to work so she could split the cost of it. Clearly this has helped her even to this day as she pursues financial independence and runs the Facebook Group “Women’s Personal Finance (Women On Fire)”.

Before she was on her financially independent journey, she had to get rid of her student debt. She did so by working two jobs before getting into a full-time position and paying off small amounts of the loan as quickly as possible. She paid off $24,000 in student loans in less than 4 years, a huge accomplishment! One of the biggest factors that pushed her to pay off her loan so early was when she calculated how much she was paying in interest on a daily basis. This lit a fire under her to become debt-free.

Now, Angela writes on her own blog Tread Lightly, Retire Early where she shares her money journey, mistakes, and tricks to hitting financial freedom. Angela prides herself on having such a strong community and blog position in a niche that tends to be led mostly by men.

In This Episode We Cover

• Instilling a money mentality in children at a young age
• Paying off your student loans as fast as you can
• Having separate accounts when married/in a long-term relationship 
• Maxing out your IRAs and doing as much as you can for your future self
• House-hacking and finding a roommate that benefits your life
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• The Millionaire Educator
• One Frugal Girl
• Student Loan Calculator
• Retire by 40
• BiggerPockets Money Podcast 161 with Mad Fientist
• BiggerPockets Money Podcast 187 with Tiffany Aliche
• BiggerPockets Money Podcast 124 with Millionaire Educator
• BiggerPockets Money Podcast 13 with Tanja

Check the full show notes here: https://www.biggerpockets.com/moneyshow191

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Side businesses can be a fantastic way to boost your savings and investing rates, especially if you’re making a low salary! Rachael works in the insurance industry and is keen on getting a promotion soon, due to her recently acquired license. She loves her work and wants to stay with her company as long as she can, but she also wants to increase her income so she can save more for her retirement, her college funds, and pay off some student debt.

Rachael has always been an artist and uses this talent to grow her small businesses. She hosts “painting parties” where she leads a group of people through painting a beautiful picture. She also has some designs that she sells over printing websites so people can buy them as mugs, mousepads, tee-shirts, and more.

She does have a few things to cut out of her life, such as a very expensive mobile phone bill for her and her sons, as well as a love for eating out. Mindy and Scott’s advice is to start tracking expenses as soon as possible and get rid of her delivery app membership right away!

In This Episode We Cover

• Why side-income streams are so important when building wealth
• Combining or keeping finances separate when in a marriage
• Why you shouldn’t liquidate your retirement savings before a divorce
• Cutting down eating out and making it easier to eat at home
• Saving on mobile service by going with a prepaid service
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Getting a finance degree doesn’t make you a great investor or saver, that’s what Teri Slater, personal finance coach found to be true after completing her degree. From a relatively early stage, Teri had already racked up student loan debt, a car loan, and credit card debt. She pulled herself out of debt and felt accomplished, but after she got married and bought her first house, she found herself back in debt. About $200k in debt!

Teri and her (then) husband had high incomes, a nice home, children, and a couple of dogs. From the outside, it looked like they were doing phenomenally, but inside the home, Teri and her husband were barely scraping by with enough money to pay the mortgage every month. They had credit card debt, a car loan, a truck loan, business loans, and a HELOC (home equity line of credit) against the house. They were completely surrounded by debt. 

They decided to attend Financial Peace University sessions and take the baby steps to get out of debt. Teri still felt embarrassed at the end of the meetings and was hesitant to disclose how they were doing financially. It took her and her husband years to get out of hundreds of thousands in debt, but as of 2018, Teri is debt free! Now she puts a generous amount towards her after-tax and pre-tax retirement accounts, and helps teach others how they too can be on a path to financial freedom.

Teri knows first hand how hard it can be to talk through financial situations with your partner. She goes through some tactics to get your partner on the same page as you and create clear goals, all without revenge spending! 

In This Episode We Cover

• Staying out of debt when you go to college 
• Diagnosing the behavioral issues around debt 
• Getting out of debt and staying out of debt 
• Keeping up the momentum when you’re paying off large amounts of debt 
• How to stop “revenge spending” when you feel it coming on
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow189

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Being strapped with student debt isn’t easy. It creates a whole new obstacle to hitting financial freedom, but it can be mitigated. So does it make sense to invest on the side and pay the regular monthly payments on student debt, or go all-in and pay off huge chunks of student debt at once? Today’s guest, Robyn, has this exact question (which many of you may have as well). 

Robyn lives in the Bay Area, one of the most notoriously expensive housing markets on the planet. That being said, she is paying very low rent, under $700 a month, split with her partner. Robyn has student loans and a small car loan, but wants to go back to school to get her master’s degree so she can hit her career goals. There would be a pay raise after she got her master’s and she loves her job, so she’s keen on staying in her sector for awhile.

Scott and Mindy go through a few examples where it may be best for Robyn to go more heavy on investing, instead of paying off the student loan aggressively. This is especially true now that the government has given the option of 0% interest payments on student loans for many students (including Robyn) until at least the last quarter of 2021. So what makes more sense, get rid of debt or go in on investing?

In This Episode We Cover

• Keeping a large savings rate every month for unexpected expenses 
• Finishing school faster so you walk away with less debt
• Knowing your student loan and other debt interest rates 
• Weighing investing against paying off student loans quicker 
• Having a side-income so you can maximize saving whenever possible
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Tiffany Aliche is back for her third appearance on the BiggerPockets Money Show! We’ve talked to her about how to teach your children about money and climbing out from financial rock bottom, now we talk to her about making millions!

If you haven’t heard from Tiffany before, we’ll catch you up on her backstory. Tiffany was doing well with money up until her mid-twenties, then she hit a few snags, and even got scammed out of $35,000 from who she calls “Jack the Thief”. She was living with her parents in her thirties and had a lower net worth at thirty than she did a sixteen. This is what she refers to as hitting her financial rock bottom.

Thankfully, she had some friends who helped pull her out of her financial shame. She then went on to work hard, started putting away money in savings and investments, and now she’s running businesses making 7-figures, every month! That is no small accomplishment, but Tiffany doesn’t want to go small, she wants to go BIG! Big retirement accounts, big businesses, and big dreams!

Tiffany’s current goal is to hit $10,000,000 in retirement savings by fifty, but thinks she may be able to do so before she turns forty-five. This is all accomplished through creating big visions, setting the pace for the rest of her financial life, prioritizing tasks in her life, and farming out her profitable skill sets. Tiffany’s friends say that everything she touches turns to gold, but Tiffany says “I only touch gold!” 

You can get Tiffany’s new book Get Good with Money today!  

In This Episode We Cover

• Going from financial disaster to ‘Budgetnista’ in a few years
• Embracing your humble beginnings and thinking of them as preparation for bigger things
• Farming your profitable skill sets where obvious and latent skills are found
• Prioritizing your daily tasks and your life as a whole
• Investing your wealth AND retirement
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter

Check the full show notes here: https://www.biggerpockets.com/moneyshow187

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Today we talk to Sammie, a physician assistant out of the San Francisco Bay Area. Sammie makes a great income, around $140,000 a year, but is strapped with a very big $160,000 student loan debt. The good news? She’s eligible for public service loan forgiveness within only a few years, all she needs to do is continue paying her loan payments while keeping her job, and the debt will be wiped away!

This is fantastic for Sammie, because she wants to start investing more into assets so she can hit financial independence within the next decade.This should be more than possible seeing as she used to be spending a lot on her rent in San Francisco, but decided to move back home with her parents two years ago to not only help them, but save money.

Sammie has some options to work more hours at her job, invest more aggressively, or buy some rental properties. She has a good amount in cash savings and would be comfortable looking into rentals starting next year. She also has a $200,000+ investment portfolio, so not only does she have a positive net worth, when her student loans get forgiven, she’ll be sitting on a lot of money she’ll be able to play with!

In This Episode We Cover

• Public service loan forgiveness for student loans
• Moving back home in order to save money on rent 
• Creating more streams of income to hit FI faster and so you can retire more comfortably
• Choosing to stay at your job even if you’ve hit your FI number 
• Investing in your 401(k), Roth IRA, and Traditional IRA
• Keeping monthly expenses as low as possible on your road to retirement
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• BiggerPockets Money Podcast 22 with Travis Hornsby
• Status Post Adulting Podcast
• Real Estate Agent Directory
• BiggerPockets Money Podcast 118
• BiggerPockets Money Podcast 84 with Kyle Mast
• BiggerPockets Membership Benefits & Cost
• BiggerPockets Bookstore

Check the full show notes here: https://www.biggerpockets.com/moneyshow186

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Barbara Friedburg wasn’t always the savvy investor and saver that many people know her as, but her background helped get her there. Born to parents of the great depression, Barbara had the traits of frugality and modesty instilled into her from a young age. Money was an open subject of discussion in Barbara’s household, unlike most households today. Her parents taught her to value money, not waste it, and be smart when you spend.

Barbara’s innate financial intelligence was clearly shown when she met her husband. Within two weeks of them getting together, Barbara had already taken over her future husband’s finances and got his money into a retirement account. This led to them having a very financially healthy relationship, never spending more than they needed to, and putting a substantial amount of their income into savings and 401(k) accounts.

Barbara then went on to become a financial planner, investor, consultant, and author. In a time where the market is so overvalued, she advises young people to be smart with their income and understand that wealth is built in the long-term, not through quick gambles. Save your money, invest it consistently, and get off the hedonic treadmill. “Don’t covet your neighbor’s BMW” is what she told us!

Barbara also gives us an inside look into her current investments, and why she heavily favors passive index funds over single stock picks. She goes into short, medium, and long-term money, and the uses for each. For young people who haven’t gotten a grip on finances yet, this is a great episode to hear from someone who has done it successfully for decades!

In This Episode We Cover

•  Making sure that money is a topic often discussed in your family
•  Knowing the value of money and fighting back the urge to spend frivolously
• Saving a large amount of your income whenever possible
• Why Barbara doesn’t believe the FIRE Movement is attainable by most
• Why You HAVE to be diversified in order to succeed
• What to do with your short, medium, and long-term money
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Scott's Instagram
• Mindy's Twitter
• Hacking Hedonic Adaptation to Get Way More For Your Money
• Free Investing Resources

 Check the full show notes here: https://www.biggerpockets.com/moneyshow185

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Saving up for financial independence can take some time, but if you’re earning a high salary, keeping your exSaving up for financial independence can take some time, but if you’re earning a high salary, keeping your expenses low, and heavily investing, FI can come quicker than you think. Today, we talk to Kristine, an estimator in the mechanical engineering and plumbing industry. Kristine and her fiancé make a sizable amount of money. Even better, they spend very little for their income bracket and invest in long-term index funds.

Kristine and her husband are thrifty, they pay only $600 a month to rent a room in a house and are just now about to purchase their first home. They’re putting 20% as a down payment and are ready for a large shift in disposable income. They’re also planning on having kids in the future, and want to be sure they can retire on their terms so they can spend time with their children.

Originally Kristine wanted about $3.1 million dollars in assets to hit a $100,000+ per year withdrawal allowance (using the 4% rule), but Scott and Mindy argue that this could be more aggressive than needed. Kristine may be over-budgeting for future children and other expenses, without realizing that her sizable amount of assets could compound quicker than she thinks. Will Kristine be able to retire far earlier than she plans? Listen to find out!

In This Episode We Cover

• How having a high income can put you on the fast rack to FI
• Keeping your housing expenses low especially when you’re making a lot of money
• Putting money into bonds as opposed to high-yield savings accounts 
• Being on the same page (financially) as your partner and having regular money dates
• Having future expenses budgeted so you can have an accurate retirement goal
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• How I Used Real Estate to Pay for My Newborn Daughter’s College Education

Check the full show notes here: https://www.biggerpockets.com/moneyshow184

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Those who are part of the FI or FIRE movement know how important it is to set yourself up on the right path in your youth. For parents, how do you get your kids excited about pursuing financial freedom? How do you talk to your kids about taxes, retirement accounts, saving, investing, and real estate without them falling asleep?

This was Rob Phelan’s question when he started working to build the Choose FI Foundation. The foundation’s goal is simple: help kids achieve financial literacy before they leave high school, let them break free from debt, build towards retirement, and live happier, more secure lives. Contrary to many parent’s beliefs, when children are presented with education regarding them becoming rich, they actually perk up.

Rob stresses that a child’s relationship with money is more important than things like amortization schedules and interest rates. Different age groups learn about money in different ways. For example, elementary school children may learn through broad concepts and simple planning, middle school children are ready to learn about retirement and taxes, and high school children can ask the big questions like “what will make me a successful adult?” as well as developing saving and spending habits.

Rob created different programs and projects such as his “meal planning” project where he asks kids to plan a week's worth of meals and compare their incomes against their expenses. He talks to high school students about house-hacking and creating cash flow so they aren’t stuck in a job they hate. He also runs The Simple Startup, where he teaches children how to start their own business for free!

If you’re a parent or teacher, you can access the Choose Fi Foundation’s full curriculum for free, and get your kids onto a great start!

In This Episode We Cover

• Why Rob chose to focus on financial literacy for children 
• The importance of solidifying crucial financial concepts in children
• How to help your children develop good saving and spending habits 
• Which topics work best for specific ages 
• Using the “Bank of Dad” idea to teach kids about saving
• Motivating high school students to reach financial freedom early in life
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• ChooseFI Podcast
• Free resource for parents, 102 Business Ideas for Young Entrepreneurs

Check the full show notes here: http://biggerpockets.com/moneyshow183

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Mindy and Scott don’t often get stumped on the Money Show, but it happens once in a great while. What do you do when you have a multi-million dollar net worth, appreciating properties, a maxed out 401(k), and a solid safety reserve? That’s exactly the question that today’s guest, Mike, has. 

Mike has worked in the music industry for years, moving all around the US to do his job. As technology has evolved, Mike is predicting an end to his specific role over the next decade, and is wondering what he should do next. He doesn’t have a lot of interest in starting a business or buying more real estate, but wants to squeeze out more money or savings if he can.

He has rental properties that have highly appreciated, but are having cash flow problems due to COVID-19. One, located in San Francisco, has netted close to $700k in equity since its purchase 12 years ago. That’s massive! Mindy and Scott go through Mike’s options, such as selling and putting the leftover profit into cash-flowing assets, or 1031 exchanging into a more diverse real estate investment.

Mike is one of the best examples of smart investing we’ve seen on the show, but there’s always more room for improvement with finances!

In This Episode We Cover

• What to do after a real estate investment has grown significantly in equity 
• HOA fees and being prepared for a large cost when owning a condo
• Looking forward in your career to see when your industry may go through changes
• 1031 exchanges and using them to get more cash flow
• Keeping your expenses low even if you make a substantial amount of money
• And So Much More!

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You may hear of 20 year olds with $1,000,000 in real estate, or a novice flipper doing 50 flips a year, or even a wholesaler who made six figures on one deal. What about the everyday investor who slowly grinds and acquires a steady stream of passive income all while building hundreds of thousands in equity overtime? Those are the real people in real estate, and that is a success story worth sharing.

Julie, software engineer and former BiggerPockets employee bought her first house after realizing that a mortgage would be cheaper than her rent. After getting together with her (then) boyfriend, they decided to buy a bigger house. As her first house sat on the market, she waited for an offer, and then made the decision to rent it out. 

A few months after buying her second home, she broke up with her boyfriend. Problem? They were both on the title and mortgage. Julie had enough money in her cash reserve to buy him out of the property. Now the property was all Julie’s and she rented out a room to help her pay off the mortgage.

Now Julie has 7 properties, spread out across Iowa, Tennessee, and Kentucky. All with very interesting stories, and all pay her passive income, every month. Julie is proof that with some financial restraint, you can slowly build a real estate empire, without even trying to do so in the first place!

In This Episode We Cover

• When you should own and when you should rent a house
• The dangers of buying a house with someone who may not be in your future
• Why you should borrow less than you’re approved for
• The importance of keeping a substantial cash reserve available for investments 
• Never rent to someone who has no credit, no references, and no job
• Diving into real estate, even if you don’t know all the tips and tricks yet
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What do you do once you’ve hit millionaire status? You have rental properties, brokerage accounts, and a good amount of cash on hand, so what’s next? This is the question that today’s guest, Brian Blask, has. Brian has done everything right so far: he doesn’t spend frivolously, he invests heavily, he isn’t overleveraged in his rental properties, and he has a high income.

Often when you reach such a high point of financial intelligence, you want to make bigger investments for bigger returns. Brian is debating whether or not he should buy more rentals in the cash flowing market of upstate New York, or buy a short-term rental in his new home state of North Carolina. Both markets are different, while one favors cash flow, the other favors appreciation. Brian is also debating whether or not he should take a truly passive role and invest in real estate syndication deals.

Many people don’t know that to become an accredited investor you (often) need to have a net worth of $1,000,000. This is why Brian is debating whether or not he should put money into syndications. Although they can be more hands off, it’s incredibly important to do your homework and look at the track record of a syndication before diving in. 

With the liquid assets that Brian has on hand, he has a number of great options to follow up with. Keep the cash flow in New York even with little appreciation, try his shot at an AirBnb in North Carolina that could both cash flow and appreciate, or have more time with his new baby on the way and put money into a syndication. What should he do? Listen to find out!

In This Episode We Cover

• How real estate helped Brian keep his income higher than his expenses 
• How much of a safety reserve should you have for your rental portfolio?
• When (and when not) to put more money into you tax-advantaged retirement accounts
• Setting up separate reserves for your rentals and your personal life
• How to evaluate whether or not a syndication will bring back promised returns 
• Cash flowing markets vs appreciation markets 
• And So Much More!

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Being in the military opens you up to an array of benefits for a financially abundant life. You have access to VA loans, a tax-free housing allowance, and a pension (if you stick around long enough). That’s why it’s of the utmost importance to start saving and investing while you’re young and in the military. But, that wasn’t exactly what David Pere (From Military to Millionaire) did when he was first enlisted. 

David grew up with frugal parents, who never splurged on much. So when he joined the Marine Corps in 2008, he was ready to catch up on the spending he never was able to do. As he describes it, he spent his first salary on “a truck, tattoos, and drinking”. Not the best way to set yourself up for financial freedom! It wasn’t until a few years later when a friend gave him a copy of Rich Dad Poor Dad that David discovered he could be doing A LOT more with his money. 

He bought a duplex with an FHA loan for $81,000 and house hacked it so his tenants were paying a majority of the mortgage. When he was shipped off for duty, he ended up leasing out the other side of the duplex and cash flowing an extra $300 per month. He then went on to buy a 10-unit with just 5% down and also got in on a small syndication in South Carolina. 

Everything was looking good, until David decided to partner up on a 40 unit, mixed-use building with a sizable amount of leverage. Some things happened and the deal turned sour, now David is in a legal battle to get his money out of the deal. Even with this massive deal not going through, David pushes the importance of scaling, but not too fast. Scaling to an amount where you aren’t overleveraged but at the same time pushing yourself to accomplish more is the sweet spot!

In This Episode We Cover

• The financial benefits that service members have 
• Why you should max out your non-taxable retirement accounts whenever possible
• Using FHA loans to buy multifamily properties with very little down payment 
• The “mentality shift” that comes with buying a large property
• How to evaluate whether or not a deal is worth the effort 
• Choosing cash flow over unit numbers to hit financial independence 
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• BiggerPockets Money Podcast 156 with Rich Carey
• FinCon

Check the full show notes here: https://www.biggerpockets.com/moneyshow179

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Last time we talked to Sarah, AKA Budget Girl, she was on Episode 6 of the Money Show. If you haven’t listened to that episode, here’s a quick recap. Sarah was $33,000 in debt from student loans, but she was able to pay it off while making less than $30,000 year! For most people, this would have taken decades to pay off, but Sarah was able to crush her debt in only a few years!

Now it’s time to check in on Sarah, and see what she’s been doing since clearing herself from debt. Currently, Sarah has a net worth of over $100,000, she took some advice from the BiggerPockets community and bought a duplex to house hack! She purchased the duplex within the “path of progress” around Texas A&M University. She’s seen some solid appreciation over the past 10 months and cash flows a small amount off the property. She’s not only living for free, she’s getting paid to live in her own property!

Sarah has also hoarded a serious sum of cash and investments sitting on the side. She has retirement accounts, brokerage accounts, and a large surplus of cash that is slowly building so she can buy her next property. Sarah is able to do this by keeping her expenses very low, while making money from her full-time job and her side hustle as Budget Girl. She proved that even with a low income, you can get out of debt and hit financial milestones!

In This Episode We Cover

• Getting out of debt fast, even with low income
• Creating multiple streams of income so you can save and invest heavily
• Buying properties within the “path of progress”
• House hacking to live for free (or getting paid to live)
• TSPs, Roth IRAs, and other retirement accounts
• Keeping your spending conservative so you can go all in on investments
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow178

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s hard being a first time home buyer, especially if you don’t have any experience with real estate, property values, or market appreciation. You may be wondering how you’ll be able to buy a home that will help increase your net worth, or at least, not shrink it. Scott and Mindy are on today to tell you how to make the best first time home buying decision possible. 

We’ll go through the most common myths that first time home buyers tend to get caught up in. Myths such as:

• Buy as much home as you can
• Buy your “forever home” as your first time purchase 
• Your home is an investment 
• And more..

If you’re interested in gaining some appreciation with your first home purchase, Scott and Mindy also walk through the most common exit strategies and how you can prepare to use them. You’ll also hear some great advice on how to find a good deal in your area. And no, a good deal doesn’t just mean a deal that is lower than market average!

Want to know more about how to successfully buy your first home? Scott and Mindy’s new book First Time Home Buyer can be ordered now!

In This Episode We Cover

• What most home buyers get wrong when buying their first house
• The most common myths that first time home buyers believe 
• How to find a good deal, regardless of the area you live in
• Knowing EXACTLY what kind of house you want to buy
• Buying a house that works for you and your partner (if living together)
• Preparing calmly to act aggressively so you can get a perfect home under contract
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most listeners of the show will know that a cash cushion is always great to have and should be mandatory for almost everyone. Having a cash reserve of 6-12 months can help you cover unexpected expenses or life events like a sudden medical bill or losing your job. That being said, sometimes you can have a cash cushion that’s too big for your lifestyle. 

Today we talk to Steve, who has been paying off his mortgage quickly with the help of his wife. They both have respectable salaries, retirement accounts, and a large cash cushion. Steve wants to know whether or not he should move some of his cash out of his reserve and into retirement accounts or real estate. 

Since Steve has such a large cash cushion to rely on, he could take out a fraction of it to use as a down payment on a rental property and still have tens of thousands left over! Scott and Mindy walk Steve through the different options he has, such as paying off his primary mortgage then buying real estate, pausing his mortgage prepayments and going all in on real estate, and other strategies. 

Steve is in such a secure position that it makes it hard to criticize his current standing. That being said, he could be using leverage to springboard his investment property portfolio and be on the path to financial freedom sooner! 

In This Episode We Cover

• How much of a cash cushion you should have available 
• Eliminating big loans like mortgages and student debt 
• Buying rental properties before you pay off your primary home
• Leveraging debt in order to grow your wealth quicker 
• Getting a real estate agent to start browsing the market for rentals
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow176

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Last time we talked to Purple from A Purple Life, she told us about her plan to retire at the end of 2020. If you haven’t listened to that interview, you can listen to it here to get the full scoop on Purple’s journey from a $5,000 net worth to hundreds of thousands within only a few years. 

Like many financially savvy early retirees, Purple put a lot of time into planning, saving, and investing her capital in order to retire in her early 30s. Well, she did it! As of October 2020, Purple is financially independent and retired! So, how’s it going so far with financial independence in Purple’s world?

Purple talks about her hobbies, interests, and most importantly, how the final month of her employment went with her former employer. She also gives some great insight on taking advantage of her employer’s health insurance for the last month of work, making sure that she was able to keep her quarterly bonus, and how she ended up breaking the news to her boss. 

It’s all worked well for Purple, but she did have some big plans to cancel. Purple had lined up 4 months worth of travel that all had to be canceled when COVID-19 hit and shutdowns began. She would have been snorkeling in Australia and scootering in Thailand right now! Thankfully, Purple has been able to adapt and take advantage of this off time to assess her financial situation and what she wants out of early retirement. 

In This Episode We Cover

• The importance of planning for early retirement even if you love your job
• Having a lean FI number and low monthly expense so you can live comfortably in retirement 
• How long a cash cushion should last you when you decide to retire 
• Taxable vs. Non-taxable retirement accounts (and which to leverage)
• Ending your employment in a respectful and polite way 
• Being flexible with your retirement plans 
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Real estate investors are known to have their hands in 20 different pots, this is doubly true for Marine and real estate investor Fabio. Fabio is a Captain in the Marine Corps and has been in service for the past 21 years. He has at least five years left before he wants to retire, but is poised to hit his “freedom number” (or what others call their financial independence number) soon.

Fabio has rental properties throughout the country: a duplex in San Diego, a house in Arizona, a BRRRR currently in the rehab stage in St. Louis, and his residence in Illinois. The problem? Some of these properties aren’t cash flowing as much as Fabio would like. He also has a high interest hard money loan on the BRRRR property he is rehabbing, plus a loan taken out against his retirement account.

This presents a handful of different options: should he sell some of the houses that aren’t cash flowing in order to pay back some of the high interest loans or wait to refinance? Which debt should be taken care of first? How can he leverage his current assets to help him build a bigger real estate portfolio. 

If you’re a long-term real estate investor, you’ve probably been in a dilemma like this before. Stick around for all the lucrative options Fabio can use!

In This Episode We Cover

• Keeping monthly expenses low (especially if you’re about to retire)
• Taking advantage of the equity you have in different properties 
• Coming up with a “Freedom Number” then shooting for that goal
• What to do with houses that aren’t cash-flowing 
• Taking out loans from a 401(k) or TSP account 
• Which loans to pay off first (depending on time and interest rate)
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Welcome to episode 173.5! Yesterday you heard from Brent, a former registered nurse who paid off over $100,000 in debt and started a mobile pizza truck! Brent’s original interview was recorded back in January or 2020 and was scheduled to be released right around the time that the pandemic hit and shutdowns began. Since it was released yesterday we thought it’d be a great idea to have him back to talk about all his progress since then!

Since we last spoke to Brent, he’s added a whole other food truck to his business and has hired on more staff. Now he’s cooking up (and selling out) pizzas wherever he goes. He even has a new social media handle, he’s TheFoodTruckCEO! 

Brent talks through the challenges he’s faced this year, the wins he wasn’t expecting, and advice he’s given to young entrepreneurs just starting their business. As you heard in the last episode, Brent paid for his first pizza truck with savings he had, allowing him to finance the business debt-free. A year later, Brent still agrees this was a good idea, as has less stress and far more creative freedom being able to make decisions without having to worry about paying off a large amount of debt. 

What are the profit margins of pizza and food trucks? Brent shares his margins, his pricing, and success stories, showing that regardless of how profitable your product is, you’re always going to have to put in the work to get it to where customers are willing to buy. Brent manages a very tight ship and is still learning the best ways to hire, manage, and make delicious pizza (without burning it)! 

In This Episode We Cover

• How Farm Fired Pizzas has grown since we last talked to brent
• Why starting your business can be much harder, but much more fulfilling than a regular job
• Why staffing is such a big hurdle when scaling and expanding a business
• Using debt vs. using cash to start your business venture 
• Becoming competent in a trade before you start a business focusing on it
• Being flexible with your business venture and embracing failures
• Raising prices in a way that works for your bottom line and your customers
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow173-5

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What does the average person do in their 20s? For most people, it means going into student debt, getting a car loan, getting a mortgage, and treating yourself. These are the “average financial decisions” that put many Americans into debt and stuck at jobs they only dream of leaving. That’s how Brent aka TheFoodTruckCEO felt when he and his wife realized they had over $100,000 in consumer debt.

Brent and his wife didn’t make any crazy decisions, he merely did what society said is the right thing to do. He and his wife had student loans to cover nursing school, both had car loans, and racked up around $13,000 in credit card debt alone. This doesn’t even include a tractor Brent decided to buy for a future business purpose!

Both Brent and his wife were bringing in solid money every month from their nursing jobs, but as soon as the money came in, it somehow flooded right back out. This annoyed Brent, he felt like he wasn’t in control of his money and his life. He went to work on debt, adding up everything they had spent over the past few months and realized he and his wife were eating out far more than needed, wasting groceries they were paying good money for, and jeopardizing their future with random purchases.

They cut up the credit cards, started snowballing their debt, reduced their eating out, and stopped shopping at the big box stores. They attacked their debt! Within 5 years, they paid off $109,000 in debt, and started to save up for investments every month.

As time went on and Brent got promoted to a more corporate role, he realized that he put himself in a terrific financial position to leave and start his own business. He had accumulated $100,000 in cash, started investing in his business, and now runs a mobile pizza truck, serving delicious woodfired pizza and doing what he loves.

In This Episode We Cover

• Why “average financial decisions” can often trap young people in debt
• Going over finances with your partner before (and after) getting married
• How to expense track to see exactly where your money is going
• Using the “debt snowball” method to get out of debt quickly
• Creating the “financial runway” you need to invest in your business and future
• How to have a job exit plan so you can leave on your terms
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Jeff, like many listeners, feels as if there is enough money coming in every month, but somehow it’s slipping out, not allowing him and his wife to hit financial independence. A big reason this could be happening is simple: not enough income and expense tracking. This is why Mindy and Scott are always so adamant about having a budget (and sticking to it).

Jeff owns his home, and it has appreciated a favorable amount since he bought it; he also owns a duplex in his home state of California, and a rental property in Memphis. But that’s not all, Jeff owns another type of property...one he isn’t too proud of. A timeshare! Jeff wants to get rid of his timeshare so he can put more money into growing wealth.

He also has HELOCs taken out against homes which are burning holes in his pockets on top of the bills he and his partner already have to pay. While Jeff is happy with his line of work, his wife wants to be able to leave her job. With so many factors at play, it can seem difficult to reach financial independence and grow wealth, while also being happy at work, but with some financial intuition, it’s possible!

In This Episode We Cover

• Why you shouldn’t go to a timeshare meeting (ever!)
• How having a high income doesn’t mean you’re moving closer to FI
• Weighing the pros and cons of in-state and out-of-state investing 
• How much to keep in cash reserves for your personal accounts and business accounts
• The importance of zeroing in on your goals so you can shoot for success
• How to stop income from leaking out (amazon shopping, eating out, etc.)
• How to have a successful money date with your partner
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Mint

Check the full show notes here: https://www.biggerpockets.com/moneyshow172

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most people would consider $80,000 a year a respectable salary, but what if you were making that much during college? That’s what today’s guest, Brandon Richard Austin, made in his sophomore year. As a journalism major, he started doing freelance writing work, and a client of his ended up offering him a remote position on the team. 

So there Brandon was, making $80,000 a year, working 12 hour days, all while juggling school at the same time. Thankfully, Brandon wasn’t a big spender. He didn’t go out and buy a new car, a new watch, or even move out of his parents’ house.

Brandon was able to start investing in index funds and early cryptocurrencies, netting him some pretty stable returns (at least from the index funds). After completing college and still having a very low cost of living, Brandon asked himself if the job was worth all the stress. He decided it wasn’t and voluntarily chose to take a pay cut to work somewhere else where he was happier and had more control of his work.

Brandon still lives at home and advocates doing the same for people his age. Not having a housing cost (or having very low housing costs) is one of the best ways to put yourself on the path to financial freedom. This low cost of living situation has allowed Brandon to be on the path to financial independence while still valuing his happiness.

In This Episode We Cover

• Why many people who grew up frugal feel guilt when spending money 
• The importance of tracking your little purchases so they don’t add up
• Whether or not taking a pay cut is worth less stress/more freedom
• Why index funds are such a great asset to hold for the long term
• Setting your financial freedom goal and seeing it as a marathon, not a race
• Minimizing your housing costs as much as possible (especially when you’re young)
• Developing an investment philosophy that speaks to you
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow171

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Erik and his wife have three big debts to tackle: their mortgage on their primary residence, their mortgage on their rental property, and a HELOC (home equity line of credit) taken out as the down payment for their rental property. So, which debt should they tackle first?

As two school teachers in New Jersey, Erik and his Wife made smart moves earlier this year by closing on a rental property, in order to have another stream of income coming in. They already have well paying jobs, pension plans, IRA accounts, and other ways of setting themselves up for the future, but how can they streamline their debt payoffs and maximize their cash?

First, Mindy and Scott walk through budgeting, and put an emphasis on why you should separate out your business expenses and personal expenses, and make sure they don’t intertwine. Then they go on to tailor a plan of action for Erik and his wife, giving some great examples of leveraging low-interest debt in order to pay off higher interest debt and fill emergency funds. 

Whether it’s personal or business debt you’d like to tackle, this is a great episode going through the pros and cons of paying off debt quicker!

In This Episode We Cover

• Why rental property owners should always have a strong safety reserve of cash
• When prepaying loans may be a good or bad idea
• How to not over-categorize your budgets and expense tracking 
• Pros and cons of using a HELOC to finance a down payment 
• 30 year mortgages vs. 15 year mortgages (rental and primary residences!) 
• Why you should separate your business expense tracking from personal expense tracking 
• Why a 457(b) plan is great for those who have it available 
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

It’s not always comfortable talking about money, especially with close friends, family members, partners, or even bosses. How did salary, savings, and investing become such a taboo subject to talk about? With us today is Erin Lowry aka Broke Millennial, you may recognize her voice from episode 24 and 81 of the BiggerPockets Money Podcast. 

Erin paints a picture that many of us can relate to: you’re at a birthday dinner and you order a small side and a water while the rest of your party orders $60 sushi rolls and $70 steaks. At the end of the night, what always happens? The bill gets split evenly. Now you’re stuck with a $60 total (and tip) when you only ate $10 worth of food. So what do you do, throw a temper tantrum and leave? Of course not!

It can be hard to match spending habits of friends and family if they make more than you (or are just more casual with their spending). Having frank conversation with these important people in your lives can not only help foster a healthy relationship, it can also put you in a position where you don’t feel resentment in the future. Don’t know how to have these conversations? No worries! Erin has a template for you!

You’re not just talking about money with your friends and family, you’re also talking about it with your coworkers and bosses. How often should you ask for a raise, when is a raise earned, how do you ensure that you’re rewarded for your hard work? These can all be very tricky questions to answer. Through some research, metric tracking, and proper planning, Erin shows exactly when to go to your boss to ask for a raise, how much is reasonable, and how to assess your value within the company.

In This Episode We Cover

• Why talking about money with those close to you doesn’t need to feel uncomfortable 
• Why “money talks” are often viewed as taboo in today’s society 
• How to talk about money with your friends, family, and partner
• Setting boundaries early for healthier relationships
• Starting a “friend fund” and offering less costly alternatives 
• When the best time to ask for a raise is
• Comparing your salary or compensation vs. industry averages 
• Showcasing your value to your employer or client
• And So Much More!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A big piece of advice given by many wealthy people and real estate professionals is to simply “get started when you’re young”. This is exactly what our guest has done today. Clayton, a renewable energy worker, travels around the midwest for work, living out of an RV with his partner.

His company grants him a company car, a company phone, a food stipend, a handsome 401(k) match, and a comfortable salary. Clayton has taken advantage of these big perks by maxing out his Roth, buying a rental property, and using his primary home as a house hack. He’s checking all the boxes at just 26 years old, with a TON of potential to do more.

Clayton is close to having the big 3 things in life paid off: housing, transportation, and food. With extra income coming in every month, what can Clayton do to put himself in an even stronger position than before?

First, he’ll need to start budget and expense tracking. This is something many guests find challenging at first, but can really help alleviate any fears of where money is going. Next, he can start adding a bigger chunk of money to his rental property reserves, that way the mortgage is always being paid (even if someone misses rent). Last, he can start looking for another house hack and another rental property. Tune in to hear Scott’s ingenious way of looking for properties even if you’re on big sites like Zillow, Trulia, or even the MLS!

In This Episode We Cover

• Why everyone should house hack when possible to do so
• Frontloading your Roth and making sure you max it out every year
• Bill tracking vs. expense tracking (and how one works better than the other)
• How to use automatic budgeting apps to fine tune your spending
• How to define your specific criteria when looking for rentals 
• Why landlords need a 6 month reserve for their rental properties
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding

Check the full show notes here: https://www.biggerpockets.com/moneyshow168

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most people are told the same thing growing up, “go to college and take out a loan, get a car and take out a loan, live in a nice apartment even if it’s expensive”. This is exactly what Josh and Ali, AKA “The FI Couple”, did in their 20s. They racked up over $100,000 in student loans, had two car payments, and lived in an apartment outside of their means.

Josh grew up without much money, causing him to not have much of a financial foundation when he reached adulthood. Ali grew up middle class, but didn’t have any financially savvy role models to look up to. As they started dating and later got married, they realized that they had to take care of debt soon, or they’d be swallowed whole by it.

Josh stumbled upon a book that changed his financial view forever. A book one of our hosts is VERY familiar with. It was Set for Life, by our very own Scott Trench! After Josh read through it, he knew he had to share the information with Ali, but it took him time to find out her specific “financial language” and the best way for him to get her excited about financial independence.

After they were both on board for FI, house hacking was their next stop. As you’ll hear in the interview, they acquired four units in a short amount of time, paid off a big chunk of their student loans, and now have passive income rolling in, every month. Talk about a rags to riches story!

In This Episode We Cover

• How debt can anchor you to a life that you don’t want
• Why getting fired or losing a job opportunity could be a great catalyst for change
• The importance of keeping your expenses as low as possible
• Finding a house hack that works for you (and your partner) so you both love where you live
• Using FHA loans to secure house hack properties with a very minimal down payment
• Making debt a “common enemy” when you and your spouse are working to reach FI
• And SO Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• BiggerPockets Real Estate Podcast
• ChooseFI Podcast
• BiggerPockets Bookstore
• BiggerPockets Investments Calculator
• BiggerPockets Money Podcast 34 with Andy Hill
• BiggerPockets Money Podcast 157 with Scott & Mindy
• Mr. Money Mustache
• Mad Fientist

Check the full show notes here: https://www.biggerpockets.com/moneyshow167

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Having too much money in investment accounts seems like a good problem to have, but it’s a problem nonetheless. Today we talk to firefighter Nathan and teacher Kristen about their income, expenditures, and investments.

Nathan and Kristen own their home and multiple rental properties as well. Collectively they bring in a respectable income, but are being stretched thin due to time restraints. From 24 hour shifts as a firefighter, making cornhole game pieces as a side hustle, and taking overtime, Nathan is working a lot, while Kristen has her hands busy as a remote teacher and taking care of their kids at home.

Between the two of them, they’re contributing a generous amount to their investment accounts, but still want a solid emergency fund (or as Scott likes to say a “financial runway”) to help them sleep better at night.

Aside from that, they are donating heavily to charity and fostering one child while in the process of adopting another. Although this philanthropic couple has all the right things going for them, they still need some downtime to enjoy the fruits of their labor.

In This Episode We Cover

• How much money to keep in your emergency fund 
• How to assess whether or not you’re over-contributing to retirement accounts
• Paying off rental properties for added peace of mind
• Developing side hustles to bring in even more income
• Why everyone needs a “financial runway” so their investments can take off
• Paying down a 457 plan loan
• Putting yourself in a favorable “liquidity position”
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• HSA – The Ultimate Retirement Account - Mad Fientist
• Challenge Everything! | Budgets Are Sexy
• Real Estate Investment Calculators - BiggerPockets
• Mindy's email
• Scott's email

Check the full show notes here: https://www.biggerpockets.com/moneyshow166

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

While living abroad, it can be very difficult to invest in assets in your home country, especially if you’re an American. Daniel J. Mills found this out early in his professional career. As a English teacher living in Japan, he had to jump through a sizable amount of hoops to find a way to invest in American stocks, index funds, and later real estate all while overseas. 

Growing up in southern California, Daniel knew that there was money to be made through entrepreneurialism. He saw his father grow a business that was profiting millions each year, only to see it later become liquidated. Daniel didn’t really think too much about money or growing his personal wealth until years later.

After college, Daniel moved to Japan and became an English teacher making a salary of around $30,000 (USD) a year. He met his wife, settled down, and bought an apartment in an appreciating part of the city (contrary to many other parts of Japan). Daniel was saving around $1,000 a month, and realized he didn’t want to be making $30,000 a year forever. So, he started investing in index funds and stocks, which grew his net worth and allowed him to invest in other asset classes, like real estate.

Daniel even shares a tax loophole that allowed him to write off 100% of his 6-figure income while he was in Japan (solely from real estate depreciation)! 

Flash forward to today, Daniel has rental properties in Idaho, Alabama, and Tennessee with partners from Japan and the United States. Daniel agrees with many other real estate professionals in the fact that you need a tried and true team in cities where you’re investing. Living in Japan, he doesn't have much to worry about in the US, thanks to his fantastic property managers, handymen, partners, lenders, and real estate agents.

In This Episode We Cover

• The challenges and benefits of investing in American assets while abroad
• Getting rid of debt fast so you’re able to scale your investments 
• How money is easier to make as you become more educated and experienced 
• The ins-and-outs of Japanese real estate compared to American real estate 
• Converting bonus rooms to bedrooms for higher rent 
• Forming partnerships with real estate professionals who can help you
• And So Much More!

Check the full show notes here: https://www.biggerpockets.com/moneyshow165

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Kyle and Sarah are in a great position. Kyle owns a mechanic and repair shop while Sarah works a regular 9-5. Combined, they’re both bringing in a solid amount of cash flow each month, but it may be getting offset by their expenses. With monthly expenses going into the 5-figures, it’s been hard for Kyle and Sarah to get the cashflow to start their real estate investing.

A few months back Kyle and Sarah began tracking their expenses, and like many people, they were shocked at what they found. Some takeout food here, some shopping there, and other random expenses were really adding up, so they started to reduce their costs.

Kyle and Sarah both have made significant contributions in their retirement and investing accounts, but they could be investing a lot more and getting a lot of write offs!

Scott and Mindy walk through the main expense categories that Kyle and Sarah have, breaking down what can be improved, reduced, and left alone. Like many people, Kyle and Sarah have found that with some fine-tuning to their budget, they'll be able to increase their investments, by a lot!

In This Episode We Cover

• Why everyone needs to track their expenses and start to budget
• How to start tracking without shame
• Why you should get quoted for insurance bundling every few years
• The importance of contributing to your HSA (health savings account)
• Why employers may want to start 401(k) programs for their employees
• Whether or not a life insurance policy may be worth the money
• What should and shouldn’t be a variable cost in your budget
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• HSA – The Ultimate Retirement Account – Mad Fientist
• BiggerPockets Money Podcast 27 with Lee Huffman
• BiggerPockets Money Podcast 18 with Mad Fientist
• BiggerPockets Money Podcast 161 with Mad Fientist
• BiggerPockets Money Podcast 03 with Erin Chase
• BiggerPockets Money Podcast 75 with Saving Sherpa
• BiggerPockets Money Podcast 139 with Joe Saul Sehy
• BiggerPockets Money Podcast 10 with Liz Thames
• XY Planning Network
• BiggerPockets Real Estate Agent Directory
• Frugalwoods

Check the full show notes here: https://www.biggerpockets.com/moneyshow164

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Have tax questions for your upcoming 2020 taxes? Stick around then! We have a mind-blowing episode with enrolled agent Steven Hamilton from Hamilton Tax and Accounting. Mindy and Scott throw a lot of high-level, hard-hitting questions at Steven, so seriously, bring a pen and paper to this episode because you’re going to get some amazing tax strategies for 2020!

How do you lower your income on your taxes if you have a W2? How do you add to your roth if you’re over the contribution income limit, and what’s the best way to get your kids to max out their retirement accounts (even if they’re only teenagers). Steven answers all these questions, plus a lot more!

Whether you’re self employed or a W2 employee, you have options on contributing to retirement, AND options on leveraging those retirement accounts to fund investments. As always, it’s best to talk to your CPA, enrolled agent, or tax preparer on the best strategy that works for you. As Steven puts it, you need to have a plan for where your wealth is going and how you’re going to distribute it.

Since 2020 was such a crazy year, many real estate investors are planning to double down on investments, up their contributions, or leave their W2 jobs. This all needs to be done with a plan and a strategy so you can maximize your investments and distributions. Steven helps spell out the best ways to do these (and more) through a number of different (and interesting) strategies.

In This Episode We Cover

• The differences between joint and separate filings as a married couple
• How AGI (adjusted gross income) effects your taxes and retirement contributions
• How to max out your 401(k) to $57,000
• UBIT (unrelated business income tax) and UDFI (unrelated debt financed income)
• How CPAs, Enrolled Agents, and Attorneys differ when preparing your taxes
• How to perform an IRA rollover into a different account
• How to put even more money into your Roth
• Setting up retirement accounts for your children
• Limiting your stock gains so you pay less tax
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• How to Access Retirement Funds Early – Mad Fientist

Check the full show notes here: https://www.biggerpockets.com/moneyshow163

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

As you go further along in your career, you should (hopefully) make more and more money, but does that justify spending more money? Most times, it doesn’t. We’re joined by Tracy, experienced engineer and retirement super saver to go through her budget, expenses, and investment portfolio.

Tracy has had a bit of a struggle with spending and expense tracking. A purchase here, some grocery shopping there, and by the time she added up her payments, she was consistently overspending by close to a thousand dollars, every month! Scott and Mindy have some great strategies to limit this type of random spending, and put your budget in the driver’s seat!

Tracy is also interested in acquiring a rental property in mid/late 2021, but she doesn’t have the cash savings she needs to do it. That doesn’t mean Tracy lacks money. Quite the contrary, Tracy has a very respectable amount of money stored between her different retirement accounts. She was lucky enough to take advantage of her company’s 15% 401(k) match (seriously, 15%)! 

Now the question is: does she limit her contributions so she can save up for a rental property or does she continue to max out her retirement accounts so she has a big cushion when she decides to stop working?

This is a very common question we get from listeners and members of the BiggerPockets community. You may be in the exact same position, all we can suggest is to tune in to hear what Mindy and Scott have to say!

In This Episode We Cover

• Why employee match programs are so valuable for retirement investing
• Whether or not you should keep an expensive car loan (or sell and get a cheaper option)
• How to fight lifestyle creep and focus on your spending and investing 
• The importance of manual expense tracking and budgeting
• How bigger shopping runs can minimize your food budget every month
• What type of savings you should have before buying a rental property
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• Dave Ramsey’s Envelope System Explained
• BiggerPockets Money Podcast 04 with Rosemarie Groner
• Waffles on Wednesday Mobile Expense Tracking App

Check the full show notes here: https://www.biggerpockets.com/moneyshow162

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

He’s back! Today we’re joined by a friend of the BiggerPockets podcast network, Brandon “The Mad Fientist”. Brandon walks us through advanced retirement account strategies you may have heard of, such as the Backdoor Roth, Roth Conversion Ladder, and the coveted Mega Backdoor Roth. While these strategies may sound intense at first, they’re quite simple in practice, as Brandon shows us!

Many FI (financial independence) followers constantly ask the question “What’s the best retirement account to contribute to that will help me optimize my early retirement?”. While this can be answered a handful of ways, it often overlooks something very important: regular retirement. While chasing FI, it’s still possible to grow your traditional retirement accounts so you’re even wealthier later on in life!

Brandon doesn’t just give various examples of each strategy, he’s tested them and has even ran experiments on his site, such as the Guinea Pig Experiment, which pits various early retirement strategies against each other.

We also tackle common questions like: what should I contribute to if I have a low/high income, should I opt for a lower deductible on my healthcare plan to optimize my HSA (health savings account), how HSAs and FSAs differ, and what the contribution limits are for retirement accounts.

Even if you’re not chasing FI, you’ll still be able to take advantage of Brandon’s advice. After all, he’s the Mad Fientist!

In This Episode We Cover

• What a Backdoor Roth and Mega Backdoor Roth are
• Why retirement accounts are crucial when trying to retire early
• How low income earners can take advantage of 401(k)s and IRAs
• Why an HSA is a great option for high-deductible coverage
• The best times to contribute to your retirement accounts
• The art of “frontloading” and using it to capitalize on market gains
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding
• BiggerPockets Money Podcast 18 with Mad Fientist
• How to Access Retirement Funds Early - Mad Fientist
• XY Planning Network
• Front-Loading - Mad Fientist
• HSA - The Ultimate Retirement Account - Mad Fientist
• Expirements - Mad Fientist
• BiggerPockets Money Podcast 120 with Michael Kitces
• BiggerPockets Money Podcast 119

 Check the full show notes here: https://www.biggerpockets.com/moneyshow161

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Many listeners of the BiggerPockets Podcast network are resourceful when saving and earning money, but maybe not quite as resourceful as Cort Johnson. Not only does he have a full-time engineering job, which he uses to support his family, he also has 5 other streams of income on the side!

From contract welding projects, to dropshipping, renting out his trailer, and even raising rabbits (seriously!), Cort has done almost everything under the sun to build up his assets. The main problem: some income streams are taking up too much time, while providing too little in return.

This is a constant problem that entrepreneurs and FIRE members face, too many options! Mindy and Scott go through Cort Johnson's income, budget, expenses, and general finances to see where he should allocate his time for maximum return.

This episode goes deep on the importance of scalable income and following your passions to develop side income streams that you enjoy. Cort dreams big about starting his own business, investing in multifamily property, and living financially free. As you’ll hear in this episode, he’s not far off!

In This Episode We Cover

• How to focus on side income streams that are worth the time
• Budgeting and expense tracking so you spend less
• Calculating the value of your time (so you don’t waste it)
• Why you should “do what you know” if you’re going to start your own business
• Turning a large single family property into a multi family for house hacking 
• Why dropshipping is such a great side hustle for busy people
• And SO Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Finance Review Guest Onboarding

Check the full show notes here: https://www.biggerpockets.com/moneyshow160

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What happens when you get married and find out your partner has debt? A lot of debt...That’s a question many young couples have, shortly after finding out their significant other’s full financial picture. While it may seem scary at first, working together to solve financial problems and gravitating towards financial freedom can bring you closer together.

That’s exactly what happened to Talaat and Tai McNeely from His and Her Money. Both were raised in frugal houses, but like many frugally-raised people, they split in financial directions. Tai was busy putting herself through college, debt free! On the other hand, Talaat went into the military and started spending his pay on consumer goods. The cars, the clothes, and everything in between.

Tai later learned that Talaat had around $30,000 in consumer debt! So what did she do, walk away from him? Of course not! She worked with Talaat and put together a plan where they both could work hard to get out of debt.

Shortly after, Talaat was debt free, so what did they do next? They bought their house, and came up with a plan to completely pay it off in 5 years (Yes, 5). Now Talaat and Tai run His and Her Money, helping other couples work together to reach their financial goals.

Talaat and Tai have 7 key tips to staying happy and secure in a marriage where the finances are shared, and how to stray away from the “2-Income Trap”.

In This Episode We Cover

• Why you should go over finances before getting married 
• The importance of inspiring your partner to have the right finance mentality 
• The importance of introspection when dealing with a partner’s money situations
• How to stray away from the “2-Income Trap”
• Whether or not you should combine finances in a marriage
• The pros/cons of paying off your home quickly
• The 7 key tips to creating a financially harmonious relationship
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• BiggerPockets Money Podcast 73 with Ramit
• BiggerPockets Money Podcast 127 with Ramit

Check the full show notes here: https://www.biggerpockets.com/moneyshow159

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Happy New Year! With the first 2021 episode of Finance Fridays, we take a look at Wayne Loux’s investments, income streams, and overall finances. 

Wayne is like many of our listeners: working a W2 job, but also supporting himself and his family by having 1099 income from being a real estate agent. On top of that, Wayne has over 10 rental units, spread throughout different multifamily properties. He also has solid retirement savings and cash on hand.

With all this income, Wayne wanted answers on whether or not he should lessen his time at his W2 job, take more cash out from equity in the multifamily properties he owns, and other common real estate investment questions.

Scott and Mindy go through different strategies that can help Wayne grow his portfolio. From 1031 exchanges, to setting up self-directed IRAs, and cash-out refinancing to build an out of state portfolio. 

These are questions we hear from many investors on the BiggerPockets forums, so stay tuned because Scott and Mindy just might answer a question you’ve had!

In This Episode We Cover

• How to value your time as a high-earning professional
• Putting family over work, even if it means stepping away from an income stream
• Which investments should you put money into when all your bills are being paid?
• SEP IRAs and Self-Directed IRAs
• Using 1031 exchanges to lower your tax burden when investing 
• Finding jobs that can scale your income (and leaving those that don’t)
• Whether you’re over or under leveraging your current portfolio 
• How to speak to your partner about big financial steps
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• BiggerPockets Calculator

Check the full show notes here: https://www.biggerpockets.com/moneyshow158

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Calling all couples! You and your partner may be on the same page financially, or off in two different directions, regardless of where you’re at, it’s a great time to start having money dates!

In this episode, Mindy and Scott are going solo, talking through why money dates are such a crucial part of any healthy relationship. This isn’t just talk, both Mindy and Scott are adamant about money dates, they do them often with their partners as well!

If you’re an individual listening to this episode, you may feel a bit intimidated by the concept of a money date. Do you just sit down and talk about index funds and taxes for an hour? No! A money date can be a perfect time to be alone as a couple, talk about the future, make some positive changes, and hold each other accountable for being the best version of yourselves. 

If you have a partner who may be a bit averse to the concept of a money date, have no fear, Mindy and Scott have perfected their plan for setting up a successful money date, and how to make it enjoyable when you’re in it.

With the new year coming up very soon, this is the perfect time to plan a money date with your special someone, you won’t regret it!

In This Episode We Cover

• What is a “money date”
• What to do before you suggest a money date to your partner
• How to make the money date successful and what topics to bring up
• Following up on your money date and setting up systems for success
• The importance of keeping your ideas simple in a money date
• How to present the idea to a partner who may not be too keen on finances 
• Why money dates help create healthier, happier relationships 
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• Wheel of Life Worksheet
• Money Date Template
• Finance Review Guest Onboarding

Check the full show notes here: https://www.biggerpockets.com/moneyshow157

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Most real estate investors get into real estate to get rich quick. If you’re looking to make a million dollars within your first year of real estate, this is the wrong podcast! But, if you’re looking to build a sustainable portfolio of cash flowing rentals while reaching financial independence in a very lucrative position, this is the episode for you!

Richard Carey, AKA the “Conservative Money Cool Kid'' started out in the military, not knowing that real estate was the place where he would create his wealth. He started with a duplex and slowly began building his real estate empire, even while overseas. He even took a 10 year break from real estate, and was still able to grow his position to an impressive level!

Real estate wasn’t the only way that Richard was investing. He was maxing out his IRAs and employee retirement accounts, investing in index funds and watching them grow more and more as he upped his contributions. Richard is a fantastic example of why you want to start investing as early as possible.

While most real estate investors champion loans and leveraging as much as possible, Richard thinks differently. He finds a position of strength by not overleveraging, owning rentals outright, and having a solid safety net to depend on. Richard now sits in a great position, early in life, with a lot ahead of him!

In This Episode We Cover

• The importance of maxing out your retirement accounts when you’re young
• How to not only pay off your rental properties, but primary home sooner
• Why there is an advantage to not having too much leverage on your investments
• How to test out a property manager when long-distance investing
• Why you should set goals to be in a financial position of strength 
• Why you don’t need to be in a rush to invest right now
• And So Much More!

Links from the Show

• BiggerPockets Money Facebook Group
• BiggerPockets Forums
• BiggerPockets Podcast 268 with Rich Carey

Check the full show notes here: https://www.biggerpockets.com/moneyshow156

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Robert from Stop Ironing Shirts has had quite a lucrative career path. Starting out as a bank teller in college, he learnt that he really enjoyed math that had dollar signs attached to the numbers. From there, he launched his career forward, first as a commercial banker, and later becoming a well-paid top executive.

While he had a great job and a partner who was also bringing in a solid paycheck every month, he slowly started to get tired of the corporate bureaucracy, politics, location dependency, and long hours.

Robert has made some mistakes on his path to early retirement. He lost money on a few real` estate deals and he even bought a brand new car (gasp!). None of this stopped him from still living below his means, siphoning off a large portion of his income for investments, and capitalizing on special programs such as the 409a plan.

Robert now lives life on his schedule. Whether that be spending copious amounts of time shopping at Costco or surfing at the beach, Robert has a life where he decides what he wants to do, everyday. Thankfully, it didn’t take him 30+ years of working to get there!