BiggerPockets Money Podcast

Everyone has experienced negative cash flow. If you have a troublesome rental property, you may experience negative cash flow. If you have a low income but an appetite for expensive eateries, you may also experience negative cash flow. But, more common than most, if you’re in the early stages of building your small business, negative cash flow may be a harsh but hard to mitigate reality. Chris is feeling the sting of sinking purse strings every month. At the start of 2020, Chris left his old job as an engineer to start working for himself. He hired a couple of employees and started taking on more and more work. But, he’s spending too much time training his junior engineers and not enough time locking down high-value contracts, leaving him in the red every month. Surprisingly, more business owners face this problem than you would think. Scott puts on his CEO hat to dive deep into the finances of Chris’ business and gives some challenging, yet reasonable, advice on how he can immediately improve his financial situation. With suggestions from both Mindy and Scott, Chris may have a better picture of how he can go from cash flow negative to very comfortable with highly positive cash flow in the near future. You may not be in Chris’ position now, but if you ever plan on starting a business, or have already, this episode is a MUST. In This Episode We CoverCash savings and why it’s always important to keep a strong safety reserve (especially as a business owner) How to break down your negative cash flow situation to find the most costly expenses Starting a business vs. continuing to work at a job and why entrepreneurs should be prepared for risk (and loss)How to establish whether or not an employee truly brings value to your company KPIs, goals, and getting on the same page with your team and employeesExecutive assistants and why high per-hour earners may need them the most And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply 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, BiggerPockets Check Out Mindy’s 2022 Live Spending Tracker and Budget6 Steps to Improve Your Financial Situation15 Things Every Newbie Needs to Know About Starting a BusinessHow to Know When to Hire Your First Employee10 Challenges to Seriously Consider BEFORE Quitting Your Day JobCheck the full show notes here: https://www.biggerpockets.com/blog/money-296 Learn more about your ad choices. Visit megaphone.fm/adchoices

Early retirement was a goal for today’s guest, Antoinette Munroe, the moment she started making money. Her money journey started in second grade when she sold her Halloween candy for extra cash. By high school, she graduated to selling a wide variety of different things and even started her own distribution network with her cousins at their respective schools. By the time she got to college, her main focus was staying out of trouble, avoiding debt and saving. It wasn’t until her last semester of grad school that she had to take out loans. After graduation, her priorities shifted, and she got a job to pay off her debt. Starting with her first check at her new job, she laid out her budget ABCs. Her ABCs follow a simple principle; automation, balance, and consistency. And after two years, she paid off her $27,000 debt! In 2015 she decided to start looking for a home, and by the end of 2015, she purchased one. She did a complete rehab on the house while also adding an addition in hopes of getting rid of her expenses to achieve her ultimate goal of not having to work. She put the finished addition on Airbnb, and it now cash flows and pays her expenses. After she realizing the power of real estate investing to build net worth and generate wealth, she did this three more times and now owns four cash-flowing properties. She is now retired and lives the free life of leisure she always envisioned for herself. In This Episode We CoverThe importance of saving money and the freedom that comes with it How to make an efficient and realistic budget & how to stick with it The Budgeting ABCs & how to simplify your budget (and your life!)Creative financing and using it to buy deals when you don’t have the cash How to create and maintain a cash-flowing asset And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply 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, BiggerPockets Check the full show notes here: https://www.biggerpockets.com/blog/money-295 Learn more about your ad choices. Visit megaphone.fm/adchoices

Index funds and rental properties are at opposite ends of the investing spectrum. On one side, you have highly diversified, almost entirely passive index funds. On the other, you have cash-flowing, yet far more hands-on, rental properties. Both of these beloved types of investments belong in (almost) every investor's portfolio, but how much should you have of one or the other?Today’s guest Cecilia has built a strong net worth while keeping her income high and expenses low. She bought at the bottom of the market in Southern California, so while home prices rise all around her, she’s sitting comfortably with her rock-bottom mortgage payment. Thanks to all the housing expense-related savings, Cecilia has been able to dump a lot of her extra cash into the stock market. But, she’s longing for a more travel-focused life, where she can take sabbaticals in any corner of the world she chooses.Part of her plan to wealth-gaining greatness is buying a short-term rental in a city she loves, so she can still vacation on the cheap. In order to do this though, she may need to sell off some of her investments or swap her strategy entirely for cash-flowing rental properties in cheaper parts of the United States. Which path will set Cecilia on a fast track to FI?In This Episode We CoverHow much to have in your safety reserves and what to do when you have too much cashIndex funds vs. rental properties and when to focus on which asset Long-term rentals vs. short-term rentals and the cash flow that comes from bothBuilding the perfect investment plan that will coast you to the life you loveAutomating your business and spending less time on repeatable tasks Whether or not early mortgage payoff is a good idea in low-interest times And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply 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, BiggerPockets Check the full show notes here: https://www.biggerpockets.com/blog/money-294 Learn more about your ad choices. Visit megaphone.fm/adchoices

A master’s degree shows quite simply that you’re a master (at least to some extent) in a certain subject. For decades, getting a master’s degree has been seen as a financially savvy move to open you up to higher pay, better job opportunities, and golden networking connections. But times have changed, and as more students see college as an inferior option to working, it begs the question: is a graduate degree worth the price?You can’t know the answer unless you compile tens of thousands of pieces of data. Thankfully, we didn’t have to do that, we just invited Preston Cooper on the show to explain the research he and his team at FREOPP did. You may recognize Preston from his previous episode on the BiggerPockets Money Podcast where he mapped out which undergraduate degrees were worth it. Now, he’s back to show which master’s degrees have the highest (and lowest) ROI.You’ll hear Preston answer questions like when is the right time to go back to school, which master’s degrees are fatal for financial freedom, and how students should go about choosing a degree or a combination of degrees. So, whether you’re pondering going back to school to get a degree in underwater basket weaving, horse training, or law, Preston has the data to help you make that decision! In This Episode We CoverWhy different schools can have dramatically different degree ROIsThe best (and worst) master’s degrees to pursue How degree combinations can help you make more money in a related career When is the right time to pursue a graduate degree (after college or after working)?The common misconception about MBAs and why most graduate business degrees aren’t worth the costThe future cost of college tuition as admission rates drop and inflation continues to rise And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply 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, BiggerPockets Hear Our Previous Interview with Preston on Episode 251Check Out Preston’s Grad Degree and Bachelor Degree Study:More FREOPP Higher Education Resources FREOPPIs A Master’s Degree Worth The Pay Raise?Connect with Dave on BiggerPocketsCheck the full show notes here: https://www.biggerpockets.com/blog/money-293 Learn more about your ad choices. Visit megaphone.fm/adchoices

Financial independence is not a new concept to Carl and Mindy Jensen. For as long as they’ve been together, Carl and Mindy have been open and upfront about their financial situations. When they learned about the FIRE movement, they knew they had an all-time goal to hit. Fortunately for them, they hit it earlier than they needed, but has their current spending forced them to recalculate what it takes to hit financial freedom?Welcome back to Carl and Mindy's Spending Summary, or as we’re naming it this month, March Money Madness. Carl and Mindy had a few big-ticket items on this month’s expense tracker, namely things like a lovely trip to Seattle and a brand new couch (Mindy bought something new!?). As the months fly by, Mindy has noticed an “over budget” trend, forcing her to either recalculate her FI number or get back into budget mode.If you’ve gone over budget like Mindy this month, don’t fret! Tracking your expenses and keeping up to date on your budget will still help you achieve the goals you’ve set for yourself. Just be extra mindful in April! In This Episode We CoverFrugal vacations vs. relaxing retreats and how to plan for added travel spendingGas prices, utility bills, and using solar to lower your cost of living The benefits of budgeting and how expense tracking keeps you frugalHaving “money respect” for your partner when sharing finances Accounting for big “one-time” purchases like furniture or trips How to save money on next month’s grocery bill (look in your pantry!) And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply to Be a Guest on The Money ShowPodcast Talent Search!Check the full show notes here: https://www.biggerpockets.com/blog/money-292 Learn more about your ad choices. Visit megaphone.fm/adchoices

eBay flipping isn’t something new. You’ve probably bought something on eBay that was sold by a reseller. Maybe a type of makeup you liked got discontinued. Maybe your favorite pair of jeans from a nationwide chain suddenly disappeared. For eBay resellers like today's guest, Tom Brickman (The Frugal Gay), it’s all about finding the products that people love but can’t get a hold of anymore.Tom is a master of frugality. Raised by a real estate investor, he knew what cash flow could do to a nine-to-five worker's life. So, at age twenty-one, Tom cashed in some company stock to buy his first multifamily. He inadvertently house hacked and was living in his own place for a whopping $138 per month! From there, he moved from his native Ohio to Texas where he got a full-time job, built his eBay flipping business, and never stopped reinvesting into rentals.As a side-hustle addict, Tom shares numerous stories about how he made (and lost) large sums of money by reselling on eBay. He even bought an entire house on eBay at auction, which came with bullet holes included. Talk about a deal! Now, retired well before sixty-five, Tom lives a life he loves with his partner, thanks to financial frugality! In This Episode We CoverWhy frugality at a young age can compound into massive wealth-building benefits ESPP and reinvesting your paycheck so you can use investments to buy cash flowWhat makes a great eBay flipping product and how to find the best deals around Commercial real estate investing and rehabbing properties for enormous equity gains Buying homes at auction online and why you shouldn’t solely trust the zip code a house is inPaying off credit card debt quickly through hard work and smart money management And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply to Be a Guest on The Money ShowPodcast Talent Search!5 Frugality Myths Americans Believe That Would Make Ben Franklin CryA Beginners Guide to Hack Your Housing and Live for FreeHow to Pay Down Bad Debt—Fast!Check the full show notes here: https://www.biggerpockets.com/blog/money-291 Learn more about your ad choices. Visit megaphone.fm/adchoices

Renting vs. buying a home, debt payoff, and the best investments of 2022 are just a few of the topics discussed in this week’s Finance FAQs. That’s right, we’re here with a new segment where Scott and Mindy take your questions directly from the BiggerPockets Money Facebook group and give answers so you can make smarter investing, saving, and life-changing decisions.In this episode, we get into questions from a range of different financial situations. We have questions about debt payoff schedules, whether to sell stocks and invest in real estate, why “safe” investing may not be smart investing, and what to do when three-quarters of a million dollars are given to you. Scott and Mindy not only answer these questions the best they can, but they also give the “why” behind the financial decision so you can be better equipped when situations like this come up in your own life!If you want to ask a question or give us feedback about this new format, you can do so on the BiggerPockets Money Facebook Group or leave a comment on the BiggerPockets Money YouTube channel. We’ll try and round up the most commonly asked questions so Scott and Mindy can keep the wealth-building wisdom coming! In This Episode We CoverThe safest investment vehicle in 2022 (and why safest doesn’t always mean best)Whether to pay off student loans or invest in retirement and real estate Which debt to pay off first so you can coast to debt-free freedomRenting vs. buying in today’s hot housing market and how to decide for yourself Funding home renovation projects (even when contractor costs are high!) House hacking and using it to lower your expenses, grow net worth, and build financial runway And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply to Be a Guest on The Money ShowPodcast Talent Search!Follow Along Mindy’s Live Budget TrackingBiggerPockets Money Podcast 35 with Craig Curelop (House Hacking)BiggerPockets Money Podcast 267 with Robert Farrington (Student Loans)Does It Make More Sense to Rent or Buy in Today’s Real Estate Market?A Beginners Guide to Hack Your Housing and Live for FreePay Off Debt or Invest?Check the full show notes here: https://www.biggerpockets.com/blog/money-290 Learn more about your ad choices. Visit megaphone.fm/adchoices

Real estate and early retirement go hand in hand. Most people think that it’ll take years (or decades) to build up enough cash flow to simply break even on your monthly expenses (lean FI). Those people probably aren’t thinking as big as today’s guest, Hugh Carnahan, who retired in only three years thanks to speed, diligence, and a courageous amount of risk-taking.You’d probably assume that to retire in three years, Hugh had to be a very financially adept person. Well, you’d be 100% wrong! Hugh struggled for years with his finances and committed almost every cash flow cardinal sin in the book. He made great income, saved almost none of it, then saved way too much of it, and thought that his path to financial freedom was through getting solar panels on his house, NOT buying houses.When a local business owner set him straight, he consumed as much real estate investing content as he could. He listened to the BiggerPockets Real Estate Podcast religiously and after 386 episodes, decided he should invest in real estate. So Hugh went and bought a nice single-family home, right? Nope. He did something much different—and he’s financially free because of it.In This Episode We CoverHow to NOT practice the “pay yourself first” principle of investing and saving Lifestyle creep and how it can eat away at your wealth, even as a high-earner ESPP programs and the benefits of getting discounted company stockThe BRRRR strategy and using it to force equity on your rental propertiesCommercial and portfolio loans, plus how they differ from residential mortgages How to leverage cash-flowing real estate to hit financial freedom (fast!) And So Much More!Links from the ShowFollow Along with Mindy’s 2022 BudgetMake Your Own Free Mobile Expense Tracking App in 30 MinutesBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterApply to Be a Guest on The Money ShowPodcast Talent Search!Check the full show notes here: https://www.biggerpockets.com/blog/money-289 Learn more about your ad choices. Visit megaphone.fm/adchoices

Passive income is a must, especially if you’re trading your life in America to start living in Portugal. Why Portugal? Besides the climate, coastline, and comfortable cost of living, Portugal allows today’s guest, Brandy, to live abroad with a passive income visa. Brandy already works remotely, but will be giving up a significant amount of her income once she makes the move.Brandy has multiple streams of income—her contract work, her eBay business, her rental portfolio, and her husband's job. In total, this comes out to a handsome $300k per year, and that’s on top of the million dollars worth of equity that sits between her vacation rentals and her primary residence. But what’s the point of so much equity if you can’t use it? This is the main topic of today’s discussion!Brandy is wondering what will make the most sense for her life abroad—keeping the rental properties or selling and investing in stocks? In order to offer suggestions, Scott and Mindy take a look at Brandy’s entire financial picture, where she stands in terms of retirement, how high her expenses are, and what she can do before her journey to start on the best financial foot possible. In This Episode We CoverBuilding wealth after bankruptcy, failed businesses, and financial mistakes Quitting corporate and coming back in a more flexible, entrepreneurial roleShort-term rental investing and the big profits (and costs) that come with itWhat to do if you have too much home equity as part of your net worth?Backdoor Roth IRAs and retirement investing for self-employed individuals Calculating rental property profits and pitting them against other investments And So Much More!Links from the Show:BiggerPockets Money Facebook Group BiggerPockets ForumsHow I Used Real Estate to Pay for My Newborn Daughter’s College EducationBackdoor Roths, Mega Backdoor Roths, and Roth Conversion LaddersEquity Rich and Cash Poor?Calculate Potential Airbnb Earnings on Your Short-Term RentalHow I Live Overseas & Still Manage My U.S. RentalsCheck the full show notes here: https://www.biggerpockets.com/blog/money-288 Learn more about your ad choices. Visit megaphone.fm/adchoices

Do you know how to ask for a raise? If you’re like most people, you probably think that we’re asking a rhetorical question. If you think it’s as easy as simply walking up to your boss, asking for more money, and leaving, you probably haven’t ever asked for a raise before. Behind every pay raise request is a clammy-handed employee, hoping that they’ve done well enough to justify that salary bump. Maybe you’re nervous to talk to your boss, maybe you feel unprepared, or maybe you just find it hard to talk about money.On today’s show, Kassandra Dasent, program manager and wealth advocate, touches on how every employee can prepare to get the raise they deserve. Despite what most people think, you should NOT prepare for your salary review days before it happens. Kassandra has a simple timeline that allows employees to maximize their raise potential throughout the year. So, when it finally comes time to talk numbers, most of the discussion is already done.This type of strategy has not only helped Kassandra but numerous listeners of the BiggerPockets Money Podcast. But, what if you can’t get a raise? What if your boss says no? What if there’s no budget left for you at the end of the day? Don’t fret, Kassandra lays out the exit strategies you should plan for when career hiccups happen (which they inevitably will). In This Episode We CoverBuilding your “success folder” and using it as your greatest tool in a salary negotiation Taking initiative on pay raises and not letting your boss control your careerMitigating the fear of talking about money and using your goals to ask for a raise with confidence How job-hopping really looks to employers and how it will dictate your career pathStrategizing your raise and negotiating for more than just money How often you should update your resume (even if you’ve been at the same company)And So Much More!Check the full show notes here: https://www.biggerpockets.com/blog/money-287 Learn more about your ad choices. Visit megaphone.fm/adchoices