BiggerPockets Money Podcast

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

“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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

“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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 BiggerPockets Forums 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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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! Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices

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 Learn more about your ad choices. Visit megaphone.fm/adchoices