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Join Mindy Jensen and Scott Trench (from BiggerPocketsMoney.com) weekly for the BiggerPockets Money Podcast. Each week, financial experts Mindy and Scott interview unique and powerful thought leaders about how to earn more, keep more, spend smarter, and reach financial independence.
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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 Cover
Building wealth after bankruptcy, failed businesses, and financial mistakes
Quitting corporate and coming back in a more flexible, entrepreneurial role
Short-term rental investing and the big profits (and costs) that come with it
What 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
How I Used Real Estate to Pay for My Newborn Daughter’s College Education
Backdoor Roths, Mega Backdoor Roths, and Roth Conversion Ladders
Calculate Potential Airbnb Earnings on Your Short-Term Rental
How I Live Overseas & Still Manage My U.S. Rentals
Check the full show notes here: https://www.biggerpockets.com/blog/money-288
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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 Cover
Building 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 career
Mitigating 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 path
Strategizing 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
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It's not uncommon to have irregular income as a business owner or self-employed individual. But with different amounts of money coming in every month, how can you budget, invest, or plan? Some months you’ll make a killing, while other months may have huge burn rates. How do you gain financial clarity when running multiple businesses with multiple income streams? What about becoming debt-free? Is it possible with such inconsistent income?
This is how Eric Dunn has been feeling lately. After paying off a significant sum of debt, Eric has seen his income slowly rise and needs help ironing out his finances before he can invest in real estate. Eric has numerous businesses that haven’t been given the accounting love they deserve. Not only that, Eric has been trying to get his safety reserve up to hold himself over during the lean months of self-employment.
Mindy and Scott work with Eric to build a financial framework that allows him to scale simply and with minimal effort. They also talk through self-employment tax, financial planning, safety reserves, renting vs. buying real estate, and more. If you’re a regular listener, you probably have more than one stream of income (or will in the future) making this advice worth its weight in gold so you don’t make some of the mistakes Eric is trying to avoid!
In This Episode We Cover
Paying off consumer debt and using it to propel forward your financial position
Separating business and personal expenses so tax time is headache-free
Financial planning and analysis, plus using it to model and predict future income
Self-employment taxes and quarterly tax penalties that you can avoid as an entrepreneur
Whether to rent or buy a home in today’s hot housing market (and strategies for both)
Why your emergency fund is meant to be spent on the right things
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-286
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When most people think of JL Collins, they think of smart stock and index fund investing. In his classic, The Simple Path to Wealth, JL lays out the foundational path that investors can follow to secure financial freedom simply, easily, and without a ton of stress. So it may come to many FI chasers’ surprise that JL has written a new book on real estate investing, and not index funds, the stock market, or our current state of high inflation.
In, How I Lost Money in Real Estate Before It Was Fashionable, JL lays out, quite candidly, how not to invest in real estate. And before you get mad about that type of advice on a BiggerPockets Podcast, please note that JL isn’t saying to NOT invest in real estate, but to invest in real estate in a smarter way than he did.
JL is the first to admit that real estate is a phenomenal way to build wealth, create passive income, and retire early. But, if you haven’t fulfilled your 250+ hours of real estate investing education, you probably shouldn’t be purchasing income properties. In today’s show, you’ll hear JL explicitly list out all the mistakes he made when investing, and how you can mitigate these risks and come out profitable instead!
In This Episode We Cover
“Stagflation” and how 2022 is looking more and more like 1979’s burdensome economy
How following the herd mentality to buy real estate may cost you time and money
The biggest home renovation mistakes and how to manage contractors correctly
Staying cautious when buying in a hot housing market and making an offer based on the fundamentals of real estate investing
Capital gains taxes and preparing for depreciation recapture when selling a property
The biggest real estate mistakes rookie investors can avoid when getting started
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-285
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Travel budgeting, sky-high gas prices, and “free” utilities are coming up in this month’s episode of Carl and Mindy’s Spending Summary. Like many Americans, Carl and Mindy didn’t have the easiest time sticking to their March budget. With rising food, gas, and utility prices, it may seem that your budget is squeezing you more and more as the months go on.
This month, Carl and Mindy touch on their biggest budget busters and wins, plus why budgets are meant to be adjusted when life permits. Carl and Mindy have been publicly tracking their budget and have found it to be a little trickier than they originally thought. That being said, both of them agree that if you have the financial means to do something you love, it’s probably worth the extra money for a once-in-a-lifetime experience.
If you’ve felt strained while expense tracking and budgeting throughout the start of 2022, just know that two of the most respected voices in the financial space also stumble from time to time. If you make a mistake, overspend, or forget to track your expenses, get back on track, hit your goals, and keep chasing financial freedom!
In This Episode We Cover
What happens when a big expense bursts your budget early
Optimizing your budget so you have breathing room when prices go up
Offsetting your electricity bill with solar and siphoning off some free natural gas
Downsizing your costs and reviewing utility bills so you only spend on what you need
Travel budgeting and keeping extra money to build life-long memories
Conferences where you can find Carl and Mindy in 2022!
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-284
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Multiple streams of income are a must if you’re trying to hit financial independence, retire early, and have the luxury of time brought back into your life. While most people simply rely on one stream of income, their W2, others want more than one leg to stand on when it comes to their financial wellbeing. How would you feel if every day you had eight (or more) income streams flowing into your bank account?
Tiffany Grant from Money Talk with Tiff spent over a decade building the income streams that would eventually set her free from the golden handcuffs of corporate life. But, that road wasn’t made easy for her. Tiffany unexpectedly became a teen mom, forcing her to pivot her journey from aspiring chef to community college business student. Thankfully, her natural knack for anything related to money allowed her to advance quickly through college and later the corporate world.
She was making good money, she enjoyed her job, and she was saving almost all of her income. Tiffany knew that her real dream was to own her own business, grow her wealth, and build the life she dreamt of. So, thanks to her smart money management, Tiffany was able to leave corporate, build over eight streams of income with one business, and regain control of her time. If you’re looking to do the same, then definitely don’t skip out on what Tiffany teaches in today’s episode.
In This Episode We Cover
Building credit at an early age and disputing false claims on your credit report
Fighting income/lifestyle creep as soon you begin to make more income
Quitting corporate life and having the emergency reserves to support yourself
Strategizing your current position so you can make more and work less
Building multiple income streams from a single business and how anyone can do it
Investing in yourself and doing whatever it takes to stay on the path to financial independence
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-283
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Passive income is the name of the game when it comes to real estate investing. While equity can help you build wealth, passive income is what can get you on the road to financial independence. But what if you got a late start in your investing career? With so many millionaire twenty-or-something-year-olds on the internet, it seems like you have to start investing at age eighteen to hit financial freedom.
This couldn’t be more wrong. Even if you feel like you’re a late bloomer when it comes to investing, you’re probably only a few years away from hitting FI—if you make the right decisions. This is the quandary that today’s guest, Nicole, finds herself in. Nicole has recently gone through a divorce and lost a good chunk of her net worth thanks to it. But, she’s poised on investing in real estate so she can hit financial independence sooner rather than later.
Thanks to her service in the military, Nicole has access to the ever-so-helpful VA loan, allowing her to purchase homes with little (or no) down payment. She also has a military pension that will kick in soon, allowing her to mitigate her cost of living even more. So, does Nicole have enough time to build her rental empire and enjoy the Floridian beaches on her time off?
In This Episode We Cover
Why it’s never too late to start investing for your future
Using VA loans to purchase house hack properties with little to no money down
Short-term rentals, medium-term rentals, and other rental property strategies
Generating more income through side hustles, job-hopping, and more
The 2022 housing market and the risks/benefits of buying in today’s hectic atmosphere
Whether or not to invest in retirement accounts when your main goal is cash flow
And So Much More!
Check the full show notes here: https://www.biggerpockets.com/blog/money-282
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Inflation can be a detriment to any early retirement plan. At first, you may think you only need a certain amount of money to retire, and maybe you’re adjusting for inflation when you do these calculations. But what happens when inflation runs more than triple the average or crosses into double-digit numbers. How does your investment strategy change? How does your “dream retirement” come true when it costs ten percent more than you originally accounted for?
These are all questions that average Americans are asking themselves: when can I retire? Can I retire? How can I afford food or gas or pay my bills? Although we can’t solely blame high inflation on the Federal Reserve, we can see how their policies lead to the situation we’re in now. Someone who stood up against the policies of quantitative easing and massive stimulus packages, is former president of the Federal Reserve Bank of Kansas City, Tom Hoenig.
Tom was in favor of quantitative easing back at the start of the great recession, but as this power to pump more money into the economy started to get abused, he rallied against the choice of the fed. Today, Mindy and Scott use this episode to ask Tom the hard-hitting questions that average investors want answered so they can make the best financial moves possible while still building wealth.
In This Episode We Cover
The rampant inflation of the 1980s and how it affects Fed policy to this day
Quantitative easing explained and how it artificially inflates asset prices
How asset values and price inflation go hand in hand
The goal of the Federal Reserve and how many of their policies have backfired
Whether or not the 4% rule still stands true in an inflationary environment
What a “good” unemployment rate looks like and how it maps the health of the economy
How investors can prepare to take advantage of times of economic uncertainty and high inflation
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Finance Review Guest Onboarding
Apply to Be a Guest on The Money Show
What Every Investor Should Understand About Inflation
How the Unemployment Rate Affects Us All (Yes, Even the Employed)
The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed
Check the full show notes here: https://biggerpockets.com/blog/money-281
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Investing in real estate is a proven way to build wealth, produce more cash flow, and retire early. But, not everyone is cut out to do every type of real estate investing. Some strategies take dramatically more time and effort than others. House hacking may be perfect for investors or couples without kids, live in flips could work best for those with some rehab experience, and BRRRR investing is reserved for those with proven investing experience.
While some of these strategies are as simple as buying a house and renting out a side, others require far more of a time commitment—time that many investors, like today’s guest Jeff, may not have. Jeff is already an established investor, currently living in a house hack that’s helping him offset his mortgage. But, he wants to expand into more return-focused real estate like live in flipping and BRRRRing.
But, with a high-paying job and lots of money in the bank, Scott and Mindy ask the question, “is real estate investing even worth it for Jeff?” Should he be sticking to stocks or does a labor-intensive rehab clearly outweigh the costs? If you’re wondering whether or not you should choose the real estate investing path to FI, make sure you hear out the arguments in today’s episode.
In This Episode We Cover
Whether or not PMI (private mortgage insurance) is worth it on a low down payment loan
How to make moves to buy a rental property in today’s hot housing market
Active income vs. passive income and which yields greater benefit
Live in flipping and the benefits of doing your own work on a rehab
What to do when you have too much cash on hand in an inflationary environment
Rolling over your 401k to maximize your non-taxable retirement income
And So Much More!
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Health insurance for early retirement? Is that even a thing? If it is, it doesn’t seem self-evident in the United States. For most early retirees within the USA, you have a couple of options for healthcare—make a low enough income to qualify for government-subsidized healthcare or pay an exorbitant amount of money to either buy healthcare upfront or pay out of pocket any time you get sick. But, that’s not a terribly safe way to live, especially when you’re working with a (relatively) fixed income.
Throughout their world travels, Amy and Tim from GoWithLess have had to learn this the hard way. They were originally insured on a healthshare plan but found it far riskier than they would have liked. Now, as they travel throughout the United States, Mexico, and the world, they’re making sure they’ve covered all bases so a random surgery or two doesn’t force them back into the working world.
Early retirement health insurance is one of the biggest reasons that financial independence-chasers stay at their jobs, so if you’re itching to get your post-work-life travel on, listen to this whole episode. In it, Amy and Tim drop gems about finding health (and auto) insurance when retiring early (or abroad). They also discuss the best questions to ask a healthcare provider or broker, what to look for in a healthcare plan, and how to save money with digital nomad insurance.
In This Episode We Cover
How Amy and Tim’s post-pandemic travel plans unraveled in 2020 and 2021
House-sitting, dog-sitting, and other ways to creatively lower your travel costs
“Quick traveling” and the time/mental energy it takes to be a full-time nomad
Roth conversions and using resident-specific tax benefits to convert more
The top questions to ask a healthcare broker when choosing health insurance
Car insurance as a retiree and how to pay less to be more protected
And So Much More!
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