BiggerPockets Money Podcast

Erik and his wife have three big debts to tackle: their mortgage on their primary residence, their mortgage on their rental property, and a HELOC (home equity line of credit) taken out as the down payment for their rental property. So, which debt should they tackle first?As two school teachers in New Jersey, Erik and his Wife made smart moves earlier this year by closing on a rental property, in order to have another stream of income coming in. They already have well paying jobs, pension plans, IRA accounts, and other ways of setting themselves up for the future, but how can they streamline their debt payoffs and maximize their cash?First, Mindy and Scott walk through budgeting, and put an emphasis on why you should separate out your business expenses and personal expenses, and make sure they don’t intertwine. Then they go on to tailor a plan of action for Erik and his wife, giving some great examples of leveraging low-interest debt in order to pay off higher interest debt and fill emergency funds. Whether it’s personal or business debt you’d like to tackle, this is a great episode going through the pros and cons of paying off debt quicker!In This Episode We Cover Why rental property owners should always have a strong safety reserve of cash When prepaying loans may be a good or bad idea How to not over-categorize your budgets and expense tracking  Pros and cons of using a HELOC to finance a down payment  30 year mortgages vs. 15 year mortgages (rental and primary residences!)  Why you should separate your business expense tracking from personal expense tracking  Why a 457(b) plan is great for those who have it available  And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

It’s not always comfortable talking about money, especially with close friends, family members, partners, or even bosses. How did salary, savings, and investing become such a taboo subject to talk about? With us today is Erin Lowry aka Broke Millennial, you may recognize her voice from episode 24 and 81 of the BiggerPockets Money Podcast. Erin paints a picture that many of us can relate to: you’re at a birthday dinner and you order a small side and a water while the rest of your party orders $60 sushi rolls and $70 steaks. At the end of the night, what always happens? The bill gets split evenly. Now you’re stuck with a $60 total (and tip) when you only ate $10 worth of food. So what do you do, throw a temper tantrum and leave? Of course not!It can be hard to match spending habits of friends and family if they make more than you (or are just more casual with their spending). Having frank conversation with these important people in your lives can not only help foster a healthy relationship, it can also put you in a position where you don’t feel resentment in the future. Don’t know how to have these conversations? No worries! Erin has a template for you!You’re not just talking about money with your friends and family, you’re also talking about it with your coworkers and bosses. How often should you ask for a raise, when is a raise earned, how do you ensure that you’re rewarded for your hard work? These can all be very tricky questions to answer. Through some research, metric tracking, and proper planning, Erin shows exactly when to go to your boss to ask for a raise, how much is reasonable, and how to assess your value within the company.In This Episode We Cover Why talking about money with those close to you doesn’t need to feel uncomfortable  Why “money talks” are often viewed as taboo in today’s society  How to talk about money with your friends, family, and partner Setting boundaries early for healthier relationships Starting a “friend fund” and offering less costly alternatives  When the best time to ask for a raise is Comparing your salary or compensation vs. industry averages  Showcasing your value to your employer or client And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

A big piece of advice given by many wealthy people and real estate professionals is to simply “get started when you’re young”. This is exactly what our guest has done today. Clayton, a renewable energy worker, travels around the midwest for work, living out of an RV with his partner.His company grants him a company car, a company phone, a food stipend, a handsome 401(k) match, and a comfortable salary. Clayton has taken advantage of these big perks by maxing out his Roth, buying a rental property, and using his primary home as a house hack. He’s checking all the boxes at just 26 years old, with a TON of potential to do more.Clayton is close to having the big 3 things in life paid off: housing, transportation, and food. With extra income coming in every month, what can Clayton do to put himself in an even stronger position than before?First, he’ll need to start budget and expense tracking. This is something many guests find challenging at first, but can really help alleviate any fears of where money is going. Next, he can start adding a bigger chunk of money to his rental property reserves, that way the mortgage is always being paid (even if someone misses rent). Last, he can start looking for another house hack and another rental property. Tune in to hear Scott’s ingenious way of looking for properties even if you’re on big sites like Zillow, Trulia, or even the MLS!In This Episode We Cover Why everyone should house hack when possible to do so Frontloading your Roth and making sure you max it out every year Bill tracking vs. expense tracking (and how one works better than the other) How to use automatic budgeting apps to fine tune your spending How to define your specific criteria when looking for rentals  Why landlords need a 6 month reserve for their rental properties And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Check the full show notes here: https://www.biggerpockets.com/moneyshow168 Learn more about your ad choices. Visit megaphone.fm/adchoices

Most people are told the same thing growing up, “go to college and take out a loan, get a car and take out a loan, live in a nice apartment even if it’s expensive”. This is exactly what Josh and Ali, AKA “The FI Couple”, did in their 20s. They racked up over $100,000 in student loans, had two car payments, and lived in an apartment outside of their means.Josh grew up without much money, causing him to not have much of a financial foundation when he reached adulthood. Ali grew up middle class, but didn’t have any financially savvy role models to look up to. As they started dating and later got married, they realized that they had to take care of debt soon, or they’d be swallowed whole by it.Josh stumbled upon a book that changed his financial view forever. A book one of our hosts is VERY familiar with. It was Set for Life, by our very own Scott Trench! After Josh read through it, he knew he had to share the information with Ali, but it took him time to find out her specific “financial language” and the best way for him to get her excited about financial independence.After they were both on board for FI, house hacking was their next stop. As you’ll hear in the interview, they acquired four units in a short amount of time, paid off a big chunk of their student loans, and now have passive income rolling in, every month. Talk about a rags to riches story!In This Episode We Cover How debt can anchor you to a life that you don’t want Why getting fired or losing a job opportunity could be a great catalyst for change The importance of keeping your expenses as low as possible Finding a house hack that works for you (and your partner) so you both love where you live Using FHA loans to secure house hack properties with a very minimal down payment Making debt a “common enemy” when you and your spouse are working to reach FI And SO Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding BiggerPockets Real Estate Podcast ChooseFI Podcast BiggerPockets Bookstore BiggerPockets Investments Calculator BiggerPockets Money Podcast 34 with Andy Hill BiggerPockets Money Podcast 157 with Scott & Mindy Mr. Money Mustache Mad Fientist Check the full show notes here: https://www.biggerpockets.com/moneyshow167 Learn more about your ad choices. Visit megaphone.fm/adchoices

Having too much money in investment accounts seems like a good problem to have, but it’s a problem nonetheless. Today we talk to firefighter Nathan and teacher Kristen about their income, expenditures, and investments.Nathan and Kristen own their home and multiple rental properties as well. Collectively they bring in a respectable income, but are being stretched thin due to time restraints. From 24 hour shifts as a firefighter, making cornhole game pieces as a side hustle, and taking overtime, Nathan is working a lot, while Kristen has her hands busy as a remote teacher and taking care of their kids at home.Between the two of them, they’re contributing a generous amount to their investment accounts, but still want a solid emergency fund (or as Scott likes to say a “financial runway”) to help them sleep better at night.Aside from that, they are donating heavily to charity and fostering one child while in the process of adopting another. Although this philanthropic couple has all the right things going for them, they still need some downtime to enjoy the fruits of their labor.In This Episode We Cover How much money to keep in your emergency fund  How to assess whether or not you’re over-contributing to retirement accounts Paying off rental properties for added peace of mind Developing side hustles to bring in even more income Why everyone needs a “financial runway” so their investments can take off Paying down a 457 plan loan Putting yourself in a favorable “liquidity position” And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding HSA – The Ultimate Retirement Account - Mad Fientist Challenge Everything! | Budgets Are Sexy Real Estate Investment Calculators - BiggerPockets Mindy's email Scott's email Check the full show notes here: https://www.biggerpockets.com/moneyshow166 Learn more about your ad choices. Visit megaphone.fm/adchoices

While living abroad, it can be very difficult to invest in assets in your home country, especially if you’re an American. Daniel J. Mills found this out early in his professional career. As a English teacher living in Japan, he had to jump through a sizable amount of hoops to find a way to invest in American stocks, index funds, and later real estate all while overseas. Growing up in southern California, Daniel knew that there was money to be made through entrepreneurialism. He saw his father grow a business that was profiting millions each year, only to see it later become liquidated. Daniel didn’t really think too much about money or growing his personal wealth until years later.After college, Daniel moved to Japan and became an English teacher making a salary of around $30,000 (USD) a year. He met his wife, settled down, and bought an apartment in an appreciating part of the city (contrary to many other parts of Japan). Daniel was saving around $1,000 a month, and realized he didn’t want to be making $30,000 a year forever. So, he started investing in index funds and stocks, which grew his net worth and allowed him to invest in other asset classes, like real estate.Daniel even shares a tax loophole that allowed him to write off 100% of his 6-figure income while he was in Japan (solely from real estate depreciation)! Flash forward to today, Daniel has rental properties in Idaho, Alabama, and Tennessee with partners from Japan and the United States. Daniel agrees with many other real estate professionals in the fact that you need a tried and true team in cities where you’re investing. Living in Japan, he doesn't have much to worry about in the US, thanks to his fantastic property managers, handymen, partners, lenders, and real estate agents.In This Episode We Cover The challenges and benefits of investing in American assets while abroad Getting rid of debt fast so you’re able to scale your investments  How money is easier to make as you become more educated and experienced  The ins-and-outs of Japanese real estate compared to American real estate  Converting bonus rooms to bedrooms for higher rent  Forming partnerships with real estate professionals who can help you And So Much More! Check the full show notes here: https://www.biggerpockets.com/moneyshow165 Learn more about your ad choices. Visit megaphone.fm/adchoices

Kyle and Sarah are in a great position. Kyle owns a mechanic and repair shop while Sarah works a regular 9-5. Combined, they’re both bringing in a solid amount of cash flow each month, but it may be getting offset by their expenses. With monthly expenses going into the 5-figures, it’s been hard for Kyle and Sarah to get the cashflow to start their real estate investing.A few months back Kyle and Sarah began tracking their expenses, and like many people, they were shocked at what they found. Some takeout food here, some shopping there, and other random expenses were really adding up, so they started to reduce their costs.Kyle and Sarah both have made significant contributions in their retirement and investing accounts, but they could be investing a lot more and getting a lot of write offs!Scott and Mindy walk through the main expense categories that Kyle and Sarah have, breaking down what can be improved, reduced, and left alone. Like many people, Kyle and Sarah have found that with some fine-tuning to their budget, they'll be able to increase their investments, by a lot!In This Episode We Cover Why everyone needs to track their expenses and start to budget How to start tracking without shame Why you should get quoted for insurance bundling every few years The importance of contributing to your HSA (health savings account) Why employers may want to start 401(k) programs for their employees Whether or not a life insurance policy may be worth the money What should and shouldn’t be a variable cost in your budget And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding HSA – The Ultimate Retirement Account – Mad Fientist BiggerPockets Money Podcast 27 with Lee Huffman BiggerPockets Money Podcast 18 with Mad Fientist BiggerPockets Money Podcast 161 with Mad Fientist BiggerPockets Money Podcast 03 with Erin Chase BiggerPockets Money Podcast 75 with Saving Sherpa BiggerPockets Money Podcast 139 with Joe Saul Sehy BiggerPockets Money Podcast 10 with Liz Thames XY Planning Network BiggerPockets Real Estate Agent Directory Frugalwoods Check the full show notes here: https://www.biggerpockets.com/moneyshow164 Learn more about your ad choices. Visit megaphone.fm/adchoices

Have tax questions for your upcoming 2020 taxes? Stick around then! We have a mind-blowing episode with enrolled agent Steven Hamilton from Hamilton Tax and Accounting. Mindy and Scott throw a lot of high-level, hard-hitting questions at Steven, so seriously, bring a pen and paper to this episode because you’re going to get some amazing tax strategies for 2020!How do you lower your income on your taxes if you have a W2? How do you add to your roth if you’re over the contribution income limit, and what’s the best way to get your kids to max out their retirement accounts (even if they’re only teenagers). Steven answers all these questions, plus a lot more!Whether you’re self employed or a W2 employee, you have options on contributing to retirement, AND options on leveraging those retirement accounts to fund investments. As always, it’s best to talk to your CPA, enrolled agent, or tax preparer on the best strategy that works for you. As Steven puts it, you need to have a plan for where your wealth is going and how you’re going to distribute it.Since 2020 was such a crazy year, many real estate investors are planning to double down on investments, up their contributions, or leave their W2 jobs. This all needs to be done with a plan and a strategy so you can maximize your investments and distributions. Steven helps spell out the best ways to do these (and more) through a number of different (and interesting) strategies.In This Episode We Cover The differences between joint and separate filings as a married couple How AGI (adjusted gross income) effects your taxes and retirement contributions How to max out your 401(k) to $57,000 UBIT (unrelated business income tax) and UDFI (unrelated debt financed income) How CPAs, Enrolled Agents, and Attorneys differ when preparing your taxes How to perform an IRA rollover into a different account How to put even more money into your Roth Setting up retirement accounts for your children Limiting your stock gains so you pay less tax And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding How to Access Retirement Funds Early – Mad Fientist Check the full show notes here: https://www.biggerpockets.com/moneyshow163 Learn more about your ad choices. Visit megaphone.fm/adchoices

As you go further along in your career, you should (hopefully) make more and more money, but does that justify spending more money? Most times, it doesn’t. We’re joined by Tracy, experienced engineer and retirement super saver to go through her budget, expenses, and investment portfolio.Tracy has had a bit of a struggle with spending and expense tracking. A purchase here, some grocery shopping there, and by the time she added up her payments, she was consistently overspending by close to a thousand dollars, every month! Scott and Mindy have some great strategies to limit this type of random spending, and put your budget in the driver’s seat!Tracy is also interested in acquiring a rental property in mid/late 2021, but she doesn’t have the cash savings she needs to do it. That doesn’t mean Tracy lacks money. Quite the contrary, Tracy has a very respectable amount of money stored between her different retirement accounts. She was lucky enough to take advantage of her company’s 15% 401(k) match (seriously, 15%)! Now the question is: does she limit her contributions so she can save up for a rental property or does she continue to max out her retirement accounts so she has a big cushion when she decides to stop working?This is a very common question we get from listeners and members of the BiggerPockets community. You may be in the exact same position, all we can suggest is to tune in to hear what Mindy and Scott have to say!In This Episode We Cover Why employee match programs are so valuable for retirement investing Whether or not you should keep an expensive car loan (or sell and get a cheaper option) How to fight lifestyle creep and focus on your spending and investing  The importance of manual expense tracking and budgeting How bigger shopping runs can minimize your food budget every month What type of savings you should have before buying a rental property And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Dave Ramsey’s Envelope System Explained BiggerPockets Money Podcast 04 with Rosemarie Groner Waffles on Wednesday Mobile Expense Tracking App Check the full show notes here: https://www.biggerpockets.com/moneyshow162 Learn more about your ad choices. Visit megaphone.fm/adchoices

He’s back! Today we’re joined by a friend of the BiggerPockets podcast network, Brandon “The Mad Fientist”. Brandon walks us through advanced retirement account strategies you may have heard of, such as the Backdoor Roth, Roth Conversion Ladder, and the coveted Mega Backdoor Roth. While these strategies may sound intense at first, they’re quite simple in practice, as Brandon shows us!Many FI (financial independence) followers constantly ask the question “What’s the best retirement account to contribute to that will help me optimize my early retirement?”. While this can be answered a handful of ways, it often overlooks something very important: regular retirement. While chasing FI, it’s still possible to grow your traditional retirement accounts so you’re even wealthier later on in life!Brandon doesn’t just give various examples of each strategy, he’s tested them and has even ran experiments on his site, such as the Guinea Pig Experiment, which pits various early retirement strategies against each other.We also tackle common questions like: what should I contribute to if I have a low/high income, should I opt for a lower deductible on my healthcare plan to optimize my HSA (health savings account), how HSAs and FSAs differ, and what the contribution limits are for retirement accounts.Even if you’re not chasing FI, you’ll still be able to take advantage of Brandon’s advice. After all, he’s the Mad Fientist!In This Episode We Cover What a Backdoor Roth and Mega Backdoor Roth are Why retirement accounts are crucial when trying to retire early How low income earners can take advantage of 401(k)s and IRAs Why an HSA is a great option for high-deductible coverage The best times to contribute to your retirement accounts The art of “frontloading” and using it to capitalize on market gains And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding BiggerPockets Money Podcast 18 with Mad Fientist How to Access Retirement Funds Early - Mad Fientist XY Planning Network Front-Loading - Mad Fientist HSA - The Ultimate Retirement Account - Mad Fientist Expirements - Mad Fientist BiggerPockets Money Podcast 120 with Michael Kitces BiggerPockets Money Podcast 119  Check the full show notes here: https://www.biggerpockets.com/moneyshow161 Learn more about your ad choices. Visit megaphone.fm/adchoices