BiggerPockets Money Podcast

Look up any “how to retire early” guide online, and you’ll see some basic information: invest in your 401(k), take advantage of your employer match, buy real estate, and invest the rest in index funds. While this type of advice is by no means wrong, it’s geared almost entirely toward W2 workers with consistent income and a full stack of benefits. Those waiting tables, bartending, or doing any other service industry work don’t fall into the “predictable income” category, so they often get left behind when spreading the word about building wealth.We wanted to fill the informational gap and give service industry workers EVERYTHING they need to know to turn tips into early retirement. The perfect person to teach us all about it? Barbara Sloan! She’s the author of Tipped: The life changing guide to financial freedom for waitresses, bartenders, strippers, and all other service industry professionals. In it, she teaches those working for tips how to turn their inconsistent (and frequently non-taxed) income into a portfoliothat will make them set for life.Barbara walks through her money story, from getting deep into debt, moving to New York City with just $700, working at bars and Wall Street, and how she turned a fluctuating income into financial independence. She gives actionable advice on how ANY service industry worker can start saving, set up an emergency fund, and build wealth, even if they’re not making a high income. She also explains why tip work like bartending and serving makes the ultimate retirement plan for those that have already hit FI!In This Episode We CoverHow to reach financial independence even when working for tips or on a low incomeWhy reporting income for taxes is a MASSIVE benefit when building wealthBuilding “buffers” and how to set yourself up for time off (even if you’re not getting paid for it)Health insurance, retirement accounts, and how service-industry workers can get on par with W2 worker benefitsBuilding a budget and why tracking your expenses is CRUCIAL on a fluctuating incomeThe busiest times for tipping work and how to make the MOST money during every off-seasonAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetShare your Money MomentHow to Become an “Overnight” Success in 10 Short Years with David GreeneFinance Friday: How to Get to Early Retirement Even FasterTipped Finance WebsiteClick here to check the full show notes: https://www.biggerpockets.com/blog/money-386Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Your home equity could be the secret sauce to earlier retirement. With so many homeowners and rental property investors across the nation sitting on hundreds of thousands in home equity, one asks, “what if you used this trapped equity to build wealth?” And although most homeowners won’t want to sell their primary residences, refinance into higher mortgage rates, or risk taking out a high-priced HELOC, rental property owners are in the perfect position to use their massive equity positions to upgrade to bigger, better investments. We brought on Chris Lopez, Denver-based investor and agent, to explain.Chris has been able to build a sizable real estate portfolio quite quickly, but even he admits to starting a little later. After working most of his career as an internet marketer turned day trader, Chris gave it all up to go head-first into real estate as an investor-friendly agent and investor. And, as a Denver investor, he’s seen homes he bought just a few years ago EXPLODE in value, and many other investors feel the same. So, if you’re in Austin, Boise, Raleigh, Phoenix, or any other real estate boom markets, it can seem as if you’re sitting on a pile of wealth that can’t be touched. But you’d be wrong.In this episode, Chris walks through how homeowners and real estate investors can unlock the “trapped” equity in their homes. He goes through when to buy, sell, or refi and how to use the BiggerPockets Rental Property Calculatorto decide the best move. Chris knows that not every property is worth selling/upgrading, but if you trade a few lackluster properties for cash-flowing ones, you could reach your retirement goals YEARS faster, with more money coming in and less stress. So, want to unlock your home’s equity and speed up your path to early retirement? Stick around!In This Episode We CoverHome equity explained and how to use it to build wealth even faster When to buy, sell, or refinance and how to calculate the best option for youCap rates and using this simple metric to decide whether a rental property is worth keepingHELOCs (home equity lines of credit) and which banks will offer them on rental propertiesChris’ five-step framework to reassess and upgrade your rental portfolioWhen to cash-out refinance and whether or not doing so makes sense with today’s high interest rates And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetFinance Friday: Living Paycheck-to-Paycheck with 9 Rental PropertiesChris Lopez ProfileClick here to check the full show notes: https://www.biggerpockets.com/blog/money-385Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Every entrepreneur wants to build a nine-figure business. Even a million dollars in revenue seems like a dream to the everyday American. So how did a Red Robin waiter, making five-dollar tips, leave college to start one of the fastest-growing real estate businesses in the country? Even better, how did he do it multiple times, creating not one, not two, but a group of entrepreneurial endeavors that casually bring in over nine figures each year? If you want to hear his system to success, you’ll have to stick around.James Dainard didn’t know much about real estate before college. After his roommate (and now business partner) started door knocking for local wholesalers, James decided to give it a try. He was miserable at it, barely getting a single deal done before leaving college. But, when offered a cushy six-figure salary, James declined, knowing that there were still riches to be made in real estate, but only if he worked smart.Fast-forward fifteen years and James owns a slew of real estate-related companies. From a luxury house flippingbusiness to hard money lending, a successful brokerage, a real estate development firm, and more, James didn’t just master one business—he mastered anything he could get his hands on. The best part? You can do this too! James drops some time-tested gems on starting, building, and scaling a business that will allow you to grow at an almost unbelievable rate like he did.In This Episode We CoverWhy James declined a $200K salary (out of college) to make a business-bet on himselfDoor knocking, wholesaling, and the BEST ways to make money as a college studentFrugality, keeping expenses low, and the massive benefit of reinvesting every dollar you haveHard money lending, real estate syndications, and other highly-profitable businesses most investors are unaware ofStructuring your team and how to scale your business even if you don’t have leadership experienceThe struggles of being a CEO and what to do when your strategy isn’t workingWhy every business needs a “quarterback” and a “coach” to succeedAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetOn The MarketFinancial Freedom Through Small Life Changes and a Modest Real Estate PortfolioHow to Become an “Overnight” Success in 10 Short Years with David GreeneClick here to check the full show notes: https://www.biggerpockets.com/blog/money-384Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Knowing how to build business credit could be the difference between starting your dream business or waiting on the sidelines. And while most people think that building business credit requires years of income, million-dollar revenue, or a personal connection with your local bank, Jack McColl is here to tell you otherwise. Jack has been able to unlock half a million dollars in business credit in record time through a simple system. He did this using means that EVERYONE has access to and is here today to teach you how to do the same.Jack is a credit master, knowing the ins and outs of every credit score rating, travel credit card, business credit card, line of credit, and everything in between. He teaches some basic techniques in today’s show about how you can get your personal credit score to 700+ quickly and then use that to grow your business credit profile, allowing you to access 0% interest credit cards that can jumpstart your business when you’re low on cash. And even if you aren’t planning onbuilding a business anytime soon, Jack’s tips will help you get a better credit card, a lower mortgage rate, and easier access to lines of credit.Jack also touches on the exact steps you need to follow to reach an 850 credit score and why the “no credit, no debt” line of thinking will hurt you later in life. He shares the best banks to get business credit from, which cards will help your score the most, and why you should always open a checking account BEFORE asking for a business line of credit. If you want to boost your score, build a business, or just travel for free using points, stick around for this episode.In This Episode We CoverHow Jack scaled from $0 to $500K in business credit (and how you can too)FICO vs. VantageScore and which credit score is the most importantPersonal vs. business credit and how the two impact each other0% interest credit cards and how to unlock them by building your business creditBoosting your credit limits and the three cards to apply for to boost your credit profileLines of credit, SBA loans, and other options business owners have to draw funds fromCredit card hacking and how to use travel point cards to globetrot for free!And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingMoney MomentScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetMy Score IQCreditKarmaClick here to check the full show notes: https://www.biggerpockets.com/blog/money-383Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

What if you won the HGTV Dream Home? If you’ve heard of the sweepstakes before, you know what it feels like to watch the walkthroughs, read about the top-tier renovations, and imagine yourself soaking in the bliss of winning a mansion, tucked away in some of America’s most serene areas. But this dream may never come to fruition because the reality of winning the HGTV Dream Home is much different than most people think. To explain, we brought on CPA and tax expert Amanda Han.Amanda admits that even though she threw her name in for the Dream Home drawing, she has some reservations about winning. While HGTV promises a multi-million dollar mansion in the mountains of Colorado, the reality is far from a turnkey option. With so many winners either choosing to sell the home or take the cash prize, one wonders, “what really happens when you win?” If you decide to keep the home, you better have mountains of cash available to pay for it because this prize is far from free.But even if you don’t, you aren't entirely out of luck. Amanda highlights a few strategies that one lucky winner can use to keep the home, how to dodge an almost unbelievable tax burden, what to do if you opt for cash, and whether turning the Dream Home into a rental property makes more financial sense. We hope you win, and if you do, please send a housewarming party invitation to BiggerPockets at 3344 Walnut Street, Denver, CO 80205!In This Episode We CoverThe 2023 HGTV Dream Home and why it’s a perfect Colorado wilderness getawayThe MASSIVE tax implications of winning a sweepstakes and what you can expect to oweTaking the cash prize option and why this may be a better bet than keeping the homeTax saving strategies that can help you owe even less to the IRSHow much you need to make to afford the upkeep on this $2M+ mansion Donating the Dream Home to charity and whether you’ll still owe taxes afterReal estate professional status, depreciation, and turning the Dream Home into a rental for ongoing cash flowAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetClick here to check the full show notes: https://www.biggerpockets.com/blog/money-382Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Knowing how to build wealth may come as a given for most investors. Buy assets, hold on to them, profit, and repeat. While this formula may seem simplistic at first glance, the emotional side behind investing is something rarely ever talked about. For those just starting to build wealth, wanting to become financially free, it can be anxiety-provoking tosacrifice most of your money for a single investment that could profit or end up failing. Rookie real estate investors constantly feel this fear before doing their first deal. But what about the fear of never moving forward?Tamar Hermes grew up without much money, and for most of her life, she never felt she deserved to have a financial surplus. For Tamar, money was something tied to guilt, but she knew to become a self-made millionaire, she’d need to change her mindset. Now, she’s helping other investors, many of whom relate to Tamar’s “starting from zero" story, get their start by building passive-income-producing empires. If you want to repeat Tamar’s path, you’ll have to stick around!In this episode, Tamar breaks down the simple ways anyone can start building wealth in 2023. She also hits on breaking past financial fear, building your money mindset, and why big goals should always be done in small steps, so you can hit your milestones faster than you think. 2023 is your year, and this is the best way to get started!Tackle your 2023 goals with the help of BiggerPockets Pro! Sign up and use code “MONEYSHOW23” for a special discount! In This Episode We CoverOvercoming money fears and why so many of us don’t think we deserve wealthKnowing your “worst-case scenario” and how it can set you free when investing2023 goals and how to turn yours into bite-sized steps you can accomplish every dayBecoming the person you need to be to build wealth in 2023 What to do when your social circle/partner disagrees with your financially-free dreamsPushing through “the grind” and why sacrifice is a prerequisite for successScott and Mindy’s simple 2023 steps that you can use to get on the right financial footing for this yearAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetClick here to check the full show notes: https://www.biggerpockets.com/blog/money-381Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

The 2023 tech layoffs have already begun to make the 2022 tech layoffs look like small-scale firings. What started as a few large companies firing unneeded hires quickly ramped up to an industry-wide cost-cutting exercise as hundreds of thousands of employees were forced to walk away from their stable salaries, free lunches, and healthcare. With tech companies being some of the most generous in terms of compensation, it makes sense that these would be the first businesses to force mass layoffs. But what about those of us who aren’t in tech? Or those that are in tech but still have a job?Tara Pramme joins us as a human resource expert, explaining exactly why layoffs are happening now, who will be most affected, what to do if you’re let go, and getting back into the job market. Tara knows how hard layoffs can be, especially for those with families to feed or work visas that only last as long as they’re employed. She knows precisely which document means what, what you should know before signing layoff contracts, what you can expect as severance, and how to keep yourself mentally stable during this challenging period.With large-scale layoffs looking to last for at least the near future, Tara wants to ensure you’re ready for whatever happens next. You’ll also hear about the common warning signs that a layoff is about to happen, why you should NEVER post negatively online after a firing, and what to do on your last day at work.We hope a layoff never happens to you, but if it does, this episode will leave you prepared to bounce back stronger than ever!In This Episode We CoverThe 2023 tech layoffs explained and why so many companies are letting employees goCommon warning signs that a layoff is heading your way Who is first to be fired when a layoff is announced, and how to tell if your company is planning oneSeverance packages, non-disparagement agreements, and how to avoid your final paycheck getting taken awayHealthcare, COBRA, and how to make sure you’re insured when you lose your jobGetting back into the job market and why it’s never too early to update your resumeThe “why” behind layoffs and how companies choose to cut staffAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetSilicon Valley Investors ClubClick here to check the full show notes: https://www.biggerpockets.com/blog/money-380Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

For the entry-level worker, employee stock options may seem completely foreign. But for most tech workers, this is commonplace and can be highly lucrative if understood correctly. In short, employee stock options, employee stock purchase plans (ESPPs), and restricted stock units (RSUs) all give an employee far more upside (and downside) than a traditional salary. As a result, you’re trading steady take-home pay for the potential to own company stock sharesthat could be valued at even more when you decide to sell. But is this gamble ever worth it?JT, long-time tech worker, has spent most of his life tinkering away as an engineer at some of the biggest companies in computing. He’s no stranger to the world of stock-based compensation and knows it can be worth the lack of salary if done correctly. In this episode, JT gives a complete overview of what stock-based compensation means, the three different types of stock you’ll be offered, and how this type of payout compares to a regular salary.He also goes in-depth on timing the sale of your stocks, the tax traps that could cost you thousands, and how to create a plan that lets you profit when getting paid in shares. If you ever foresee yourself working at a startup, tech company, or publicly-traded conglomerate, you MUST know what these types of compensation mean. Or, you’ll risk losing the real reward of a stock-based salary.In This Episode We CoverStock-based compensation explained and why companies would rather pay shares than a salaryESPPs, RSUs, stock options, and the different ways you could get paid at a tech companyWhen to sell your company shares and tax tips that can stop you from owning a big IRS billWho is eligible to be paid in stock, and whether or not entry-level workers can get accessThe stock-payout schedule and when employees can expect to receive full compensation for years of company loyaltyJT’s stock-selling strategy and whether he chooses to sell or hold on to company stockAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetClick here to check the full show notes: https://www.biggerpockets.com/blog/money-379Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

“What to do if you win the lottery." This question is getting more online searches than ever before. But what would you do? The wheels start turning as soon as those lucky numbers get picked. You stare down at your ticket in disbelief. Then, you make sure to match the ticket in your hand to the numbers on the screen. You could be staring at a million or billion-dollar prize, and for a second, most of your financial worries start to slip away, soon to be replaced by a new set of challenges. How will you manage it? How much will you owe back in taxes? Should you take the annual payouts or the lump sum? A better question is, “how do I redeem this thing!?”The lottery is played by millions across the United States, hoping to get their hands on the winning prize. But how does the lottery work? Where does the money you spend on a ticket go? And do you really have a chance of ever winning? Carolyn Becker from the California State Lottery knows more than most. She’s been working with lottery agencies for years, making sure that winners are genuine players and ensuring that a percentage of the lottery profits go to good causes within the Golden State.She outlines exactly how the lottery works, how the winning numbers are chosen, the philanthropic side of buying a ticket, and what to do when you win millions or billions of dollars at once. She also drops some tips on better ways to play the lottery and why there’s a higher chance of you winning than you think. So, if you’re buying a ticket in hopes of a billion-dollar jackpot, Carolyn’s advice could help!In This Episode We CoverThe history of the lottery and using ticket sales to fund philanthropic causes Why Mega Millions and Powerball jackpots are hitting the billion-dollar mark The actual odds of winning the lottery and the chance of you getting a cash prizeInterest rates and the Federal Reserve’s effect on lottery jackpots What to do if you win the lottery and why a financial advisor should be your first hireThe “lottery curse” and why so many winners blow their money after hitting a big winAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetMegamillionsClick here to check the full show notes: https://www.biggerpockets.com/blog/money-378Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices

Mr. Money Mustache is the internet’s poster child for early retirement. At age thirty, Pete Adeney was able to leave a lucrative job as a software engineer to focus on building a financially free life. He brought the FIRE movement to the mainstream by teaching others online how simple spending skills could allow them to quit their corporate jobs, keep more money while working less, and live a life centered around passion, not a paycheck. His popular blog has garnered millions of visits, as early versions of himself flock to the financially-freeing wisdom so rarely talked about in average American society.Pete has been retired for nearly twenty years now, meaning he’s been FIRE more than double the amount of time he spent in the working world. So, how does he spend his days? What keeps him going? Does he still have enough money?And how can someone repeat his system? Scott and Mindy spend this episode asking the “life after FI” questions, so you can know exactly what you’re getting into when you retire early. Pete’s answers shed light on often untouched topics that most of the money community can’t answer.We’ll go deep into planning for financial independence, developing “spending skills” that can bring early retirement decades sooner, and the right way to quit your job and wean off work. Pete also shows what the day in the life of an early retiree looks like and how today’s stock market crash has affected his portfolio. Want to retire early? Strap in—we’ve got the man who brought FI to the masses on today’s show!In This Episode We CoverPete’s repeatable plan for FI and the simple steps that can lead to financial freedomQuitting your 9-5 and why leaving work all at once could be a big mistakeWhy most early retirees never touch their nest egg (and why you probably won't either)Whether or not early retirement truly lives up to the hypeThe 2022 stock market crash and how it’s affected Pete’s portfolio and investing mentalityStocks vs. bonds and why someone who’s chasing early retirement should choose one over the otherAnd So Much More!Links from the ShowFind an Investor-Friendly Real Estate AgentBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingMindy's TwitterScott's InstagramListen to All Your Favorite BiggerPockets Podcasts in One PlaceApply to Be a Guest on The Money ShowPodcast Talent Search!Subscribe to The “On The Market” YouTube ChannelListen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPocketsCheck Out Mindy’s 2022 Live Spending Tracker and BudgetMr. Money MustacheThe Surprising (Scientific) Truth Behind What Makes You SuccessfulMultpl.comCfiresim calculatorEarly Retirement ExtremeClick here to check the full show notes: https://www.biggerpockets.com/blog/money-377Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Learn more about your ad choices. Visit megaphone.fm/adchoices