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368: Lynne Twist’s “Want Less, Obtain More” Philosophy All FI-Chasers Should Follow Jan 02, 2023

Show notes

Lynne Twist’s The Soul of Money sparked a conversation we needed to have. It didn’t make people think “how do I make more money,” instead it asked, “what world am I making with the money I have?” For decades, Lynne has beenfundraising for charities and causes around the globe. From ending world hunger to fighting for the climate, she’s made sure that her dollars are best put to use, helping the most people she can with the money she makes.

Lynne’s rock-solid financial sense came from an unusual background. Her mother was raised well-off, but her family’s wealth came crashing down when they were forced to flee the home abroad they had made for themselves. Then, when Lynne’s father died, her mother became increasingly frugal, but for a good reason. Lynne’s mother wanted to use her money to give, not get, making every cent count in the budget. Later in life, Lynne and her husband lost a massive portion of their wealth, forcing her to ask the question—why pursue riches in the first place?

On today’s show, we have a lively discussion on the toxic money culture that has enveloped American society, why financial independence is worth pursuing, and what those with much can do to help those with so little. Lynne’s take on wealth-building opens up a refreshing debate among early retirees and forces you to ask “why” instead of “how” when it comes to making money. Tune in, and be sure to check out Lynne’s new book, Living a Committed Life!

In This Episode We Cover

The “soul” of money and the scarcity belief that is causing society’s financial anxiety

When is “enough” and how making less but giving more makes you richer

The importance of self-sufficiency and why chasing financial freedom is always a worthwhile goal

Learning to forgive yourself for money mistakes and why losing wealth isn’t always a bad thing

Fighting world hunger and how Lynne is using her voice to tackle huge global issues

Lynne’s brand new book, Living a Committed Life!

And So Much More!

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The Soul of Money

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367: Finance Friday: Tips to Build a House Hack STACK in Your 20s Dec 30, 2022

Show notes

Couch flipping may be the best side hustle you’ve never heard of. It’s so lucrative that today’s guest Parker used couch flipping to save up his down payment for his first house hack! Of course, who could have assumed otherwise from someone like Parker? He’s a financial analyst who made an intelligent move from expensive Boston to sunny Tampato house hack for the first time with one of his best friends. He’s making some impressive moves at a young age, but he still has questions about what to do next.

Although Parker is thankful for buying the house hack, he doesn’t know what he should do after he moves out. Does he sell the property, keep it as a rental, transfer it into an LLC, or go back to renting as he saves up enough money for the next house hack? He also has some very pressing capital expenditures on his mind, like a new roof, HVAC, and other large system replacements that could cost him and his house-hacking partner tens of thousands out of pocket. These replacements won’t be cheap, but they could help improve the property before he potentially sells.

And like most FIRE-minded twenty-something-year-olds, Parker needs to know where the highest ROI for him is. Does he continue to save up to buy another house hack, or should he be contributing to his tax-advantaged Roth, HSA, and 401(k) accounts? Plus, with such an unbelievably lucrative side hustle like couch flipping, how much time should he put into building this income-replacing revenue stream? Parker is on a great path, but with guidance from Mindy and Scott, he could reach financial independence even faster!

In This Episode We Cover

House hacking explained and the benefits of building a house hack stack early on

When to transfer an investment property into an LLC (and whether it’s even worth it)

How to calculate cash flow on an investment property to ensure you’re turning a profit

The “shotgun” clause every investor should sign when partnering on a deal

Couch flipping and how this side hustle can make you thousands every month

Capital expenditures and how to estimate your costs for big future repairs

And So Much More!

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Click here to check the full show notes: https://www.biggerpockets.com/blog/money-367

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366: The Repeatable Steps to Financial Freedom in 4 Years w/TheFICouple Dec 26, 2022

Show notes

Financial independence means something different to everyone. For some, it means having enough to not worry about being laid off. For others, it could mean making more money to buy a yacht, but for Ali and Josh (TheFICouple), financial independence means more time together, growing a family, and a community that helps others reach their highest potential. Just four years ago, Ali and Josh were strapped with six figures worth of debt, living paycheck to paycheck, struggling to survive. Now, they’re financially independent, working their jobs just two days a week, and spending the rest of the time building a better life for their future child.

Ali and Josh are tenacious savers and investors, but they weren’t always like this. They were used to spending everything they made, scared to look at their bank accounts, and hoping that the future would somehow become brighter. Once they took the financial blinders off, Ali and Josh saw that the only way to build their ideal life was to deal with their financial hardships head-on. From there, they house hacked, heavily invested, paid off debt, and began publicly posting their wins, and losses, on social media under the @TheFiCouple handle.

They’ve gone from surviving to thriving, and this episode hints at just a portion of what Ali and Josh are building. With a baby on the way, they’ve become even more aggressive with growing their online brand, their real estate portfolio, and their investment accounts. If you want to repeat the four-year path to FI like Ali and Josh, tune in!

In This Episode We Cover

Paying off over six figures of student debt and the beauty behind taking small steps

Seller financing real estate and using it to buy properties without the big banks

Quitting full-time work and still saving over eighty percent of your income

Growing your online brand and building a community that’ll push you to new heights

Why building a massive real estate portfolio isn’t what it’s all cracked up to be

Tips for those that are still in debt or just starting in their investing journey

And So Much More!

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Amanda's Instagram

She Wolf of Wall Street Website

From Fired to FI Couple in 2 Years with Josh and Ali

Budgeting for a Baby: The Costs EVERY New Parent Should Expect

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365: Finance Friday: How to Become Real Estate Ready in 2023 Dec 23, 2022

Show notes

Don’t know how to become a millionaire? There’s a pretty simple formula for seven-figure wealth that the average American doesn’t know about. It isn’t complicated, but it does take a fair amount of time to come to fruition. If you follow the same strategy, regardless of where you’re starting right now, you too could become a millionaire in under ten years. This wealth-building formula is exactly what today’s guest, Remy, is looking for.

Remy is doing his mid-twenties the right way. He’s got a great income, contributes heavily to investing, and already has six figures in equity thanks to buying his home two years ago. He’s made moves that many young investors would envy, but he wants to go even further over the next ten years. Remy is looking to become “real estate ready” in 2023, meaning he needs to be in a favorable position to start building his rental property portfolio so he can have a million dollars of real estate by the time he turns thirty-five.

The plan is simple for Remy, but he’ll need to make some serious tradeoffs. Is more real estate worth forsaking his growing retirement accounts? Should he slash his emergency fund to pile more fuel onto the FIRE? And where can he cut his budget so he’s saving as much cash as possible, ready to invest in the next great deal that comes his way? If you want to get real estate ready like Remy, stick around!

In This Episode We Cover

How to invest more when you’re financially treading water every month

Why requoting your car insurance after a certain age could save you thousands

Real estate vs. retirement investing and which one is worth a bigger contribution

Renting vs. selling your primary residence and when freeing up cash is the right move to make

Emergency reserves and the certain situation when Scott and Mindy are against them

Why retirement accounts can be a “trap” for the investor who wants to retire early

And So Much More!

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Click here to check the full show notes: https://www.biggerpockets.com/blog/money-365

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364: Divorce: The Biggest Marriage and Money Mistakes to Avoid Dec 19, 2022

Show notes

Everyone makes financial mistakes, even those that we trust with money the most. Rachel “Money Honey” Richardsto many people online is the epitome of someone who has their finances locked down. She grew a massive real estate portfolio in her twenties, hit financial freedom before thirty, and has written bestselling books that others use to increase their financial acumen. And although Rachel still is a financially free money nerd like no other, her recent divorce changed most of what she knew.

Through a few simple mistakes, Rachel’s recent divorce dragged on longer, cost more, and left more up to chance than she would have liked. After going through the pain, struggles, and anxiety of leaving the marriage, Rachel wants everyone, whether single, dating or married, to not make the same mistakes she made. These mistakes are often small, and can be easily overlooked, but making them could be deadly to your finances and allow an unplanned divorce to bury you.

But this isn’t all advice on what to do before or during a divorce. Rachel shares personal advice on red flags you should look for when starting a relationship, how to separate your finances so you keep what is yours, and why overlooking a prenup can be one of the worst moves to make when starting your marriage. No one plans for a divorce, and Rachel didn’t as well. So happily ever after or not, these life-saving moves are ones you should be thinking about making.

In This Episode We Cover

The “misaligned vision” that led to Rachel and her ex-husband’s divorce

Red flags to watch out for and an instant sign that a relationship may not work out

Losing 50% of your real estate portfolio to divorce and how to protect against it happening again

What most couples get wrong about marital assets and how they’ll get split during a divorce

Rachel’s four biggest money mistakes that you should NEVER make when married

The trust cost of divorce and how much Rachel had to pay to separate

And So Much More!

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Prenups, Projects, Prolific Spending, and Planning for 2022 w/ Carl & Mindy Jensen

Why You’re (Probably) Wrong About Prenups

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363: Finance Friday: Savings Stuck At Zero? Here’s How to Grow Your Bank Account Dec 16, 2022

Show notes

Once you know how to save money, you can start stacking those savings to buy real estate and businesses or invest in long-term wealth-building investment accounts. But, without a steady stream of savings coming in, you're treading water, and one emergency expense could completely blow you off course. In a high-cost-of-living area like Washington, DC., this can seem even harder as rent, gas, and going out prices are far above the national average. But, there are some surefire ways to save (and make) more every month.

On this Finance Friday episode, we talk to Richard, a government tech worker who makes a great salary but could potentially be bringing in much more. Richard’s dream of being the President naturally led him to real estate investing, and now he’s focused on building bigger, stronger, and smarter income streams so he has ultimate time freedom (and a high net worth) in the next few decades. But even with his tech salary, Richard struggles to save every month, with random expenses knocking him out as soon as they arise.

Mindy and Scott go through Richard’s income and expenses as well as his debts, much of which are forgivable student loans. Richard debates whether sticking with his perk-heavy government job is worth the pay difference he could gain in the private sector. And whether or not buying cash-flowing businesses is a smart move, especially for someone without much savings. If you’ve struggled to boost your bank account, this episode may hit close to home!

In This Episode We Cover

Public student loan forgiveness and the “trap” many government workers find themselves in

Emergency funds, safety reserves, and how to build one from scratch

When to change jobs for more pay vs. when to keep big benefits, but a lower salary

How to budget and the better way to track your expenses if you struggle to save

Buying a business and what it takes for first-time entrepreneurs

Creating a vivid vision of what your life, job, and business will look like in five to ten years

And So Much More!

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Click here to check the full show notes: https://www.biggerpockets.com/blog/money-363

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362: Scott Trench’s Step-by-Step Guide to Building Your Perfect, 1-Page Investment Plan Dec 12, 2022

Show notes

A financial plan puts you on the path to long-term wealth and a life rich in time freedom. So why don’t most Americans have one? Everyday workers are often so focused on paying bills and having a sliver of time to relax that they completely forget the whole reason many of us work—to one day do what we want, when we want, with who we want. So, if you’ve been on the grind, making money, wanting to build wealth, but don’t know where to start, this is the episode for you.

In it, Scott Trench walks through his “investment philosophy,” a simple, customizable plan that has allowed him to build wealth at record speed all in less than ten years. This document can be used by anyone in any position no matter how much you have invested or saved up. Once written, this simple financial plan gives you laser-focus on building wealth, so market crashes or corrections become a buying opportunity and slow months/years are something to cherish, not worry over.

Scott and Mindy walk through this document piece by piece, giving you the exact answers you need to build your investment plan today. Although this document may sound simple, it’s what will define your life’s effort for the foreseeable future and give you the structure you need to accomplish massive wealth-building goals that may have seemed almost impossible before!

Get the Personal Investment Philosophy Template Here!

In This Episode We Cover

Why creating a financial plan/investment philosophy is so crucial when building wealth

Goal setting and discovering the principles of investing that you follow

How to set your “target state” and what to do after you’ve achieved your biggest goals

How to choose which asset classes to invest in (even if you’re brand new to investing)

Emergency funds, safety reserves, and when or when not to keep a large cash position

The three steps you can do TODAY that will fast-track your wealth-building

And So Much More!

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Finance Friday: First Down Market? Here’s How to Stop Stressing

The Money Date: What You Should (And Definitely Should Not) Do to Align Your Finances as a Couple

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361: Finance Friday: Got Extra Cash? Here’s the Investment Plan for You Dec 09, 2022

Show notes

Retirement planning is something best started early on. The more time you give yourself to invest, the faster your accounts can grow, giving you early financial independence well before the age of sixty-five. But what are the two best ways to do this? On one hand, you’ve got cash-flowing rentals that appreciate while giving you freedom-enabling income with long-term wealth growth. On the other hand, you’ve got passive retirement accounts, many of which can save you boatloads on taxes and grow discreetly in the background while you work away.

It’s hard to say which is a better bet, so why not do both? Today’s guest Benjamin is feeling a little under-diversified after heavily investing in real estate, but without much in his retirement accounts. Benjamin is well versed in the pros and cons of pre and post-tax retirement investing, but with a high income, he’s worried that he may have already reached the income cap for his Roth IRA. Thankfully, he’s unlocked the “holy grail” of retirement accounts, one that will skyrocket his retirement quicker than he thinks.

But before all of this is done, Benjamin and his partner need to build their investment plan. This will help them stay the course when life events come up, allowing them to still retire rich, hopefully in less than a decade. If you want to build your own investment plan, we highly recommend using the one from our own Scott Trench!

In This Episode We Cover

Paying off six figures of student debt and using the extra income to invest heavily

House hacking and using primary residences to build wealth

Roth IRA investing and what to do if you’ve hit the income limit

The best way to invest in your retirement with stocks and index funds

The right way to do diversification and safely building wealth at a young age

Speeding up your path to financial independence with rental property investing

And So Much More!

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Fidelity Investments

Click here to check the full show notes: https://www.biggerpockets.com/blog/money-361

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360: Year-End Tax Tips and How to Owe Even Less in 2023 Dec 05, 2022

Show notes

If you talk about how to avoid taxes, most people will think you’re doing something fishy in the eyes of the IRS. Very few know you can use the tax code to massively lower your year-end burden, all while making an ordinary income. Real estate investors have been doing this for years, using so-called “tax cheat codes” like depreciation and cost segregation studies to write off massive paper losses on their taxes. But how do they do it, and if you’re an investor, can you do the same?

Natalie Kolodij, IRS Enrolled Agent, works exclusively with real estate investors to lower their taxes as much as legally possible. She knows the tricks of the trade that allow investors to not only pay less at the end of the year but grow their businesses more efficiently so financial freedom comes even faster! Natalie is also an active real estate investor and part of the FIRE movement, so if there’s one person who knows the right tax moves to make, it’s her!

Natalie gives us a masterclass on how investors can lower their 2022 taxes as the year comes to an end, how to set yourself up for a successful 2023, and the massive real estate tax write-offs you should be utilizing. She also touches on how much CPAs and tax preparers can cost, when to start strategizing your taxes, backdoor Roths, and how to legally pay your children tax-free income so they get a boost on their financial future.

In This Episode We Cover

Year-end tax tips to lower your 2022 taxes as much as possible

When to hire a CPA or tax preparer (and how much they’ll cost you)

2023 tax deductions for real estate investors and what you should take advantage of NOW

How to get your children investing early with tax-free income from your business

The biggest tax mistakes that investors make and why you may be overpaying in taxes

Cost segregation studies, bonus depreciation, and how to cancel out the capital gains of a home sale

And So Much More!

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