BiggerPockets Money Podcast

Your late 20s through early 30s can be a financially troubling part of life. You aren’t making the most money you ever will, but you’re tackling big expenses. A wedding, a down payment, and trying to max out retirement accounts can put you in a financial tizzy. But, it doesn’t have to be so complicated, especially if you stick to a scalable investment strategy.Today’s guest Louise is in this position. She recently changed employers and found herself with a big uptick in monthly income. She has plans on the horizon to marry her girlfriend but knows this will come at the cost of many thousands of dollars (rings, dresses, etc.) She’s also looking at buying a primary residence, but is already familiar with the home buying experience (she has two rentals!) Louise has a plan to hit FI (or at least coast FI) by age 40 and wants to know the best way to optimize her finances to do so. Scott and Mindy have a healthy debate over 401ks, Roth IRAs, refinancing rental properties, and combining finances as partners, in order to get Louise in the best position possible to tackle her financial goals. In This Episode We CoverWhy switching jobs may be the ultimate hack to getting a better salary Whether you should max out your Roth, 401k, Roth 401k, or HSAGetting a cash-out-refinance instead of stockpiling cash Whether or not paying off a rental property mortgage is a good ideaRenting vs. buying when living in an expensive market Combining finances as a couple and having the ever-important “money date”And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

There are few people on this earth that can make Mindy laugh as much as Alex Felice. He’s been around the block with BiggerPockets a few times, appearing on episode 301 of the BiggerPockets Real Estate Podcast. Alex has a growing rental property portfolio, a flipping business, and is a professional photographer/videographer. But, beneath his success, was thirty-one years of financial struggle.Alex was taught financial skills growing up. The only problem: he didn’t listen to any of the advice he was given. He joined the Army without any skills, and as soon as he got out, he immediately bought a new car with a high monthly payment. He then was hit with a DUI, forcing him to really think what his life would turn out like unless he made a change.He needed cash flow but didn’t want to go out and get another job, so he settled on investing in real estate. It was important for Alex to have a “get rich slowly” type asset, one with stability that could take care of him well into retirement. Now, he’s amassed an impressive portfolio, with some large commercial deals and flips on the side. Alex spends his days investing, working on his skills, traveling, and really doing whatever he wants!In This Episode We CoverWhy self-sustainability is more important than a big paycheck Using “radical responsibility” to mold your perfect life and never falling into the “it will be okay” trapBuying foreclosures and BRRRRing properties to minimize cash needed for investingHaving control over your money so you have ultimate financial freedomWhy you MUST surround yourself with like-minded, successful individuals Focusing on your passions (regardless of whether they pay well or not)And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

“Should I cash out my 401k?” That’s a question you never want to ask in an online financial independence forum. It’s been a well-known rule to never cash out retirement accounts due to withdrawal penalties, tax implications, and the possibility of throwing away your retirement plans. But, what if you had a substantially larger amount in real estate and other assets, what would you think then?Kate is in this exact predicament and has done a phenomenal job at growing her wealth over the past decade. Kate and her husband have acquired $1.8 million in rental properties, bringing in gross rents of over $10,000 per month! She’s currently sitting on half a million dollars in rental property debt and is wondering whether cashing out her 401k to pay off the debt would make sense.Because Kate is in such a high cash flow position, she may be asking a question that’s not so obvious. Mindy and Scott spend time walking through calculations that allow Kate to visualize what her life would look like with paid-off rentals as opposed to a fully-funded 401k account. In This Episode We CoverWhy a mentor can help spur you onto to make better, more aggressive investing decisions Moving to a different part of the country to take advantage of higher salariesHow to calculate whether or not you should withdraw your 401k funds Switching your job to a more flexible schedule without giving up your salaryTravel hacking and using credit card points to pay for your vacationsThe benefit of using financing to buy your primary residence or rental propertiesAnd So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Brad Finn was raised with a strong work ethic that follows him to this day. He always knew he should be working hard, and that’s exactly what he did. Brad worked throughout high school, college, and started multiple businesses in adulthood. While his work ethic was strong, his financial skills were lacking. When Brad went to college, he remembers using almost a third of his student loans on partying alone.Fast forward to his mid-thirties, Brad is waking up in a beautiful house, with two nice cars in the driveway, a great income, a new business, and a negative net worth. It wasn’t until Brad allowed himself to look at the true number behind his net worth that he realized something needed to change. Fortunately, his wife had been slowly, but surely, trying to tell Brad that they had to make that change.The day Brad’s first child was born, he and his wife were debt-free. This didn’t come easy, especially since they were facing close to $190,000 in debt. They tracked their spending and realized they spent close to $20,000 in two months, solely on eating out. They dialed it in, worked side jobs to boost their savings rates, and rewarded themselves when they hit milestones. Now their net worth is growing fast, and they’re locked in on investing.In This Episode We CoverCalculating how much you need in student loans and taking out that exact amountHow to continue your debt payoff journey without getting discouragedRewarding yourself for big milestones, even if it will set you back a small amountTalking to your partner about money and asking their opinion on strategies Raising your budget on things that matter while lowering it on things that don’tRetirement plans for government workers, like 403b and 457 plans Understanding that the long journey to financial freedom is worth itAnd So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Retirement planning can be complicated when you have so many options to choose from. Do you stick with the Roth IRA, the 401k, the Roth 401k, your employee pension plan, or solely invest in stocks and real estate? With all these different types of accounts and their numerous benefits and drawbacks, it’s easy to get stuck financially stalling. One person who has been able to optimize his retirement plans, is Matt, pilot and soon-to-be captain, delivering cargo around the United States. Matt bought a home in high-appreciation St. Petersburg Florida, where his home has already gained a fair amount of equity. Although he loves the ability to rent out his home and create cash flow, Matt doesn’t like staying on dry land for too long. He’s going to captain his own home; living in a houseboat and renting out his primary residence to lower his living costs even more.Matt talks through questions he has about his 401k, Roth 401k, Roth IRA, and other retirement accounts. Even though Matt feels he could be optimizing his finances for faster retirement, both Mindy and Scott agree: if he keeps doing what he’s doing, he’ll reach his fifty-year-old retirement goal, without any change to his current lifestyle.In This Episode We CoverDeciding between the 401k, Roth IRA, Roth 401k, and other retirement accounts House hacking and taking advantage of low-interest, owner-occupied loans Whether or not an employee pension should be thought of as a guaranteed retirement Living on a boat to save money on housing costs and maximize cash flowHow to plan for retirement when you have an age limit for your jobEmployee stock purchase plans (ESPPs) and when to invest in oneAnd So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

If you’re part of the FI community, you’re probably a saver. Heck, if you’re listening to this podcast you’re probably a saver. While we all are busy optimizing our budget, reinvesting dividends, and contributing to our retirement accounts, do we ever take a step back and ask, “why are we saving so much?” Maybe you have a simplistic answer for this: your kids, your spouse, your “future”. When it comes time to finally reap the rewards of all that saving and investing, we struggle, and often fail to do so.Ramit Sethi, the author of I Will Teach You To Be Rich, has struggled with this in his personal life as well. When he got married, he and his wife spoke about what money meant to them, and they were shocked to have completely different answers. While Ramit loves setting up models and spreadsheets, he also encourages couples to speak about their finances through a shared vision. It isn’t “I’m saving this money so we can be happy”, it’s “WE are saving this money so we can take that camping trip we always dreamed of.”We touch on other topics like joint bank accounts, creating a “worry-free number”, and building a rich life together, as partners. Ramit also gives personal advice to Mindy to help her realize that she has already won the “money game”, even if it doesn’t feel like it at times. In This Episode We Cover Combining finances as a couple and creating a shared vision  How much to keep in your personal and joint bank accounts  Creating your “worry-free” number that allows you to live life without money stress The “money rules” that Ramit uses in his daily life  Getting over your “savings rate obsession” and finding joy in spending  Why spending can become painful for those who are on the road to financial independence And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

A few weeks ago, Mindy was asked by a listener of BiggerPockets Money, “when are you going to do a Finance Friday follow-up?” Well, listener, your wish has come true! Today we talk to three past guests of the BiggerPockets Money Show, Sarah from episodes 6 and 178, Brian from episode 180, and Erik from episode 170.In Sarah’s most recent episode, she spoke about having large safety reserves and sinking funds for her new property. Since being on the show, she’s taken time to evaluate how safe she really needs to feel. She’s taken a risk and has started to invest in her first short-term rental, as well as being on the house hunt for her next house-hack property!Brian had the question we all want to have, “what do I do with all this money?” Since coming on the show, he’s expanded his rental property portfolio, purchasing an off-market five-unit in upstate New York, and a short-term rental in North Carolina. He’s currently looking into syndications to see if that would be another great avenue for his wealth accumulation. Lastly, Erik has returned to the show with more rental units and more cash flow! He’s been able to pay off his HELOC with a very lucrative refinance, allowing him to buy a new condo that is paying him $400/month after all expenses! He was even able to increase his salary thanks to his employer’s free education program! Make sure you stick around for his bonus tip towards the end of the episode! In This Episode We CoverWhy being too conservative with your savings can become a financial detriment Making offers on properties that work for your numbers, even if it means rejectionWhy short-term rentals are very cash flow heavy investment Telling everyone you know that you’re investing in real estate (to get more deals!)Using a cash-out refinance to pay off old loans like equity lines and HELOCsTaking advantage of employee benefits like free college tuition And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Amber Porter has one of the most optimized retirement plans we’ve ever seen. Seriously, she could give Mindy and Scott a run for their money! Amber grew up in a neighborhood that was anything but rich. Surprisingly, the wealthier people in her neighborhood were more interested in purchasing nice cars instead of investing, which they told her was essentially gambling. Amber quickly saw past this idea and realized that smart, consistent investing could lead her to many millions of dollars.She worked throughout high school and was able to graduate in only three years. Then, she applied for every scholarship possible and did the same in college, graduating in three years and completely debt-free. Suddenly, the idea of law school came into her head. She studied, passed the entrance exam, and got into a top school. The same school even gave her a twenty-five thousand dollar scholarship every year she attended.After graduating, she started investing heavily, working as much as she could to fund retirement accounts. She started working for the Army on the side, which allowed her to get an even better retirement plan, an army retirement check, and the ability to buy homes with a zero percent down VA loan. If all goes to plan, Amber will be retiring with close to ten million dollars at age fifty! In This Episode We CoverHow to graduate from college debt-free by taking advantage of scholarships Graduating early so you can save a year's worth of tuition Working a government job with the benefit of a pension upon retirement Military benefits for homeownership, retirement investing, and moreGetting rid of the “investing is gambling” fear many people haveReaching Fat FIRE upon retirement so you can live exactly how you dreamedAnd So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Marching along Bourbon Street last week was a parade with some of the best real estate investors in the world, celebrating another successful BPCon, ready to take on the world. Throughout the past week, attendees of the conference heard from world-class business leaders, investors, and authors, learning about everything from running a business to short-term rental markets, to self-storage, and more.On this live episode, your BiggerPockets Money host, Scott Trench, is joined by Brandon Turner and David Greene, hosts of the BiggerPockets Podcast, Ashley Kehr and Tony Robinson, hosts of the Real Estate Rookie Podcast, and Liz Faircloth and Andresa Guidelli, hosts of The Real Estate InvestHER Podcast, plus special guest Esther, who has a widely impressive portfolio herself.You’ll hear the hosts talk about topics like how to connect with fellow investors, future trends influencing the real estate market, what’s working today (and what isn’t), plus a live version of the Famous Four and Fire Round. If you weren’t able to make it to this year's BPCon, plug into this episode and get on the waiting list for next year!In This Episode We CoverWhat’s ‘firing up’ the hosts of the BiggerPockets Podcast Network?What investors can do in today’s market to ensure wealth tomorrowFuture trends that allow investors to profitably pivot How BPCon helps connect investors, reshape ideas, and build wealthHow do you vet partners before you go in on a deal with them?The top characteristics that contribute to your success as an investor Why you should definitely be at BPCon 2022 And So Much More!Links from the Show:NPR (National Public Radio)Kevin Leahy's BiggerPockets ProfileMark Ferguson's InvestFourMoreWendy Papasan's LinkedIn ProfileNoah Evans's LinkedIn ProfileRickey Rodriguez's BiggerPockets ProfileYour First Real Estate Investment Podcast: How to Recover from the Great Recession and Leverage Creative Financing to Fund Your First DealJoe Asamoah's BiggerPockets Author ProfileAJ Osborne's Personal WebsiteSteve Rozenberg's BiggerPockets ProfileInvestHer's Partnership Question GuideMeetupHal Elrod's Personal WebsiteDave Ramsey's Personal WebsiteCashflow The Board GameMatt Faircloth's BiggerPockets Author ProfileBiggerPockets CalculatorsThe Real Estate InvestHER Community Learn more about your ad choices. Visit megaphone.fm/adchoices

If you and your sweetheart want to get married, rent a truck in a Colorado ski town, and have your dog watched while you’re doing so, Stephanie Warner is the person you should get in touch with. Even though she has a great W2 job, she still hustles hard with her side income work, making enough to pay for her lifestyle while her nine-to-five pays for her future financial freedom.Stephanie had enough money growing up, but she wasn’t given a ton of financial literacy lessons from her parents. Thankfully, her Grandma who loved driving used cars and buying rental properties taught her the importance of being a homeowner and helping those who are in need. Once she left her hometown for college, graduated, and got a job, she moved all over the country doing all different sorts of work. This gave her a diversified education and allowed her to take on challenges that were interesting to her.Now, she shares with BiggerPockets Money listeners how she flipped her financial position, thanks to some very lucrative side hustles!A special thanks to our guest host, Joe Saul-Sehy from Stacking Benjamins, who got so tired of Scott’s puns, he decided to host one of the shows himself.  In This Episode We CoverThe importance of owning your own home and rental properties Graduating with little-to-no college debt, allowing you to save and invest moreTaking on jobs that interest you, instead of ones that solely pay the billThe art of side hustles and making thousands after your nine-to-fiveLiving “paycheck to paycheck” by paying yourself first for investing and savingAnd So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices