BiggerPockets Money Podcast

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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