BiggerPockets Money Podcast

There are many ways to fund your nest egg. You could outright save, or you could invest in index funds, rental properties, or short-term rentals like today’s guest, Charlotte from Charlotte. Working as a teacher in one of the lowest-paid states in the US, Charlotte was able to fully replace her teacher’s salary by operating a single short-term rental cabin in Western North Carolina.

When she discovered the FIRE Movement only a year ago, she knew that intelligent investments like this could fund the globetrotting adventures she and her husband had plans for. But, with her husband four years away from securing his government pension, Charlotte wants to be absolutely sure that her short-term rentals will be pulling the fiscal weight of word travel when he steps away from his job.

Charlotte may be a rookie in the terms of real estate investing, but she’s far from it when it comes to taking actionable steps to ensure phenomenal returns. She’ll be hitting a 100% cash-on-cash return with her newest rental addition! If you have dreams of early retirement through real estate, follow Charlotte’s lead by planning, executing, and financing to FI!

In This Episode We Cover

The phenomenal returns of short-term rentals and why now may be the best time to invest

How to plan for retirement with a pension or predictable income stream 

Investing in index funds vs. real estate when trying to hit FI

Vacation home, second home, and portfolio loans for your next short-term rental

Why the high price of STR property management may be worth the peace of mind

And So Much More!

If you’ve been in the FI community for years, you know the ins and outs of retirement planning, index fund investing, house hacking, and every other money-making opportunity around. But, it’s safe to say that this took you years to figure out, sometimes well into adulthood. What if you were given the same knowledge you have now, but when you were a teenager?

Dan Sheeks is trying to do this exactly, by teaching his students about personal finance, saving, investing, and how they can plan for FI. Dan has taken his knowledge of finance, teaching, and working with teens to write First to a Million, a Teenager’s Guide to Achieving Financial Independence. In this book, Dan takes teens on a journey through the four mechanisms of financial independence and teaches them to plan money around what makes them happy.

So many teenagers have seen their parents run off to work only to come home exhausted, constantly checking emails, and rarely present with the family. Dan wants to make this all-too-real future a thing of the past for teens who are willing to work hard, be frugal, and practice financial discipline. 

In This Episode We Cover

Why The American Dream may be off-course for modern teens 

The financial independence “plan of attack” for teens who want to hit FI fast

Why happiness should be at the forefront of your financial decisions 

Whether or not college is still a viable choice for today’s modern working world 

The importance of having a strong community you can count on

And So Much More!

We’re back with another Finance Friday Follow-Up! This week, we talk to two past guests and review three life updates. Fabio from episode 174, Clayton from episode 168, and Rachael from episode 190 all have life updates for the audience!

When we last talked to Fabio, he was starting to expand his real estate empire. Since the market has been so hot, he has had to pivot his strategy towards what works best for him in the long term. With a few years of military service left, Fabio wants to wind down his more active income and pursue more passive income streams, while still including real estate and stocks/index funds in the mix!

Clayton shared with us on his solo episode how lucrative living on the road can be. Since then, his girlfriend has turned into his fiancé, he’s been offered a very large pay raise, and he has scaled his real estate portfolio with one more house hack. He also gets to take his foot off the literal gas pedal since he’ll be transitioning into a more stay-at-home role.

Rachael wasn’t able to be here for a video interview but sent Mindy an update on her overall financial situation. Since we last talked, Rachael realized that house hacking wouldn’t be exactly the right fit for her family. Thankfully, she’ll be closing on a new home closer to her children. Rachael also found herself in a particularly scary financial and medical situation since we last talked, something that you’ll hear about in-depth on a new episode in the coming months!

In This Episode We Cover

When is the right time to sell a property, especially in a hot seller’s market?

Paying off high-interest debt so you can reach financial independence faster

The importance of budgeting and expense tracking so you don’t impulse buy

ESPPs (employee stock purchase plans), HSA (health savings accounts), and other lucrative investing options 

Sharing the financial knowledge with your significant other in case of an emergency

And So Much More!

On the last day of a semester in college, Adam Zaleski’s geology professor dropped a bomb on his class: the professor was worth a staggering $10,000,000! The reason for telling the students about his net worth wasn’t to impress but to make the case that exponential growth is more likely than most people think. This taught Adam that he needed to choose a profession he enjoyed so he could continue to work, invest, and grow his wealth exponentially, just like his professor. 

Adam did just that, and now, he’s a millionaire professor, working a casual thirty hours per week, doing what he loves! Adam knew from the beginning it was more important to make long-lasting, intelligent financial decisions, instead of chasing after a bigger salary. He did this right out of college, taking a serious pay cut to live in a state with far cheaper housing, allowing him to house hack, build wealth, and reach financial freedom.

Now, Adam is looking to expand his real estate empire a little further, without having to sacrifice a large amount of time to do so. If you’re interested in partnering up with Adam or looking to chat about long-distance real estate investing, market analysis, or the best surf spots in Kauai, shoot Adam a message on BiggerPockets!

In This Episode We Cover

Why lifestyle choices are important when choosing your job, house, and investments 

Understanding the value that comes with exponential wealth growth 

House hacking and analyzing real estate markets with the most growth opportunity 

Buying rentals in places you love, so you can write off the trip!

Scheduling your rent raises so you keep up with market cash flow 

The most important financial lessons of your 20s, 30s, and 40s

And So Much More!

It takes a leap of faith to leave a W2 job and wander through the hills and valleys of self-employment. With the right skill set, time management, and perseverance, you can come out more profitable (and happier) than you were originally at your old job. But, once you succeed, it may be hard to slow down the self-employment train, and your side-gig could become a full-on business, with the need for employees.

TJ has put herself in a phenomenal position, both financially and income-wise. She left her job to become a full-time consultant but knows she won’t be able to expand without hiring her first employee. Her business would need an employee to bring in more revenue, BUT she needs more revenue to bring on an employee. What would you do in this situation?

Scott and Mindy have both spent time outsourcing and hiring before. They help TJ develop a roadmap to getting her first hire on board while keeping crucial revenue in the business. This episode also dives into self-employed health insurance, project management, and hiring a junior position that can grow into a senior in little time. 

In This Episode We Cover

Why it’s imperative to keep your costs low while trying to run a business 

What to do once you’ve hit your max capacity for work at your business 

Whether or not now is the time for you to hire your first employee

Fully mapping out the cost of a full-time vs. part-time worker on your team

Putting together a business plan that allows you to forecast your business’s future 

Health insurance while self-employed and why an HSA plan may be your best bet

And So Much More!

Is college worth it? For the first time in history, we may have a definitive answer to whether or not your specific degree and school choice provides a positive ROI. We know that ROI isn’t the only thing that matters when choosing a degree, but when looking at higher education through a financial independence lens, it’s definitely the highest value.

Looking through census, employment, and Department of Education data is number crunching crusader, Preston Cooper. Preston and his team over at The Foundation for Research on Equal Opportunity put together the most extensive research on college degree ROI ever created. Preston’s findings allow you to parse through over 30,000 degrees and school choices so you (or your child) can make the best decision on where to get a bachelor's degree.

Preston discusses the discrepancies between nonprofit and for-profit university degrees, whether or not high-cost schools equal a higher payday through life, and why even going to Harvard doesn’t secure a high ROI. Want to know the true value of your degree? Tune in and check out Preston’s full study!

In This Episode We Cover

How much you could benefit, in general, from getting an undergraduate degree

The degrees that have the highest lifetime ROI

Degrees that offer little-to-no or negative financial benefit

Whether investing in real estate or a college degree is more worth it 

The biggest criticisms of Preston’s study and how he combats them 

Dave, Mindy, and Scott’s ROI on their respective degrees 

And So Much More!

Everyone knows that tech salaries tend to be on the higher end. In tech, you could be working as an engineer, programmer, or statistician, like today’s guest Matthew. But, Matthew never planned to go to school for this type of work. Half a decade ago, Matthew was wearing a chef’s apron, working forty to sixty-hour weeks, making slightly above minimum wage. He loved the work (and the food) but realized he couldn’t keep living with the long hours, low wages, and high stress.

Mathew went back to school to study statistics and landed a job in tech, which he’s just recently moved on from, and accepted a far higher salary. This all sounds like good news, so what exactly is Matthew having trouble with?

After maxing out many of his retirement accounts, Matthew is wondering where else he should be putting his money. He’s already saving a significant amount every month, thanks to his frugal lifestyle, but wants to be sure he’s standing on a strong financial foundation. Should he look into rental properties, taxable brokerage accounts, or higher-risk assets like tech stocks and crypto? If you’re lucky enough to have a little extra change left over at the end of every month, you may be in Matthew’s position too!

In This Episode We Cover

Changing careers even after you’ve been working in the industry for years

What to do if you’re young and don’t know which field to study 

Keeping your expenses low, regardless of how well your job pays

Starting side businesses that can help you float expenses 

Investing in after-tax retirement accounts vs. investing in post-tax retirement accounts

Live in flip tips from the master herself (Mindy Jensen) 

Calculating out your estimated retirement nest egg using the ‘Rule of 72’

And So Much More!

You’ve heard the old statistic “nine out of ten businesses fail”, but why is that? If there are so many people willing to risk their livelihood to pursue a great idea, why do so many end up broke and back at a job? Gabe Nelson, certified financial planner and business advisor, has an idea.

Gabe advises many business owners and solopreneurs through building their businesses with maximum cash flow and minimum time commitment.

A couple of decades ago, Gabe was in the position many entrepreneurs are in today. He was working seven days a week, almost living at the office, doing anything he could to build his business. Once his daughter was born, he knew he had to take a step back from the seven-day workweek. Then, his second and third daughter were born, forcing him to automate, delegate, and eliminate every unnecessary task on his plate. 

Now, with a thriving firm, Gabe knows what does (and doesn’t) work for solopreneurs, and the systems they need to implement now to secure a happy life tomorrow. 

In This Episode We Cover

The #1 thing you should do before you start a business or side hustle 

Keeping your relationships healthy while working long hours at your business

Outsourcing when you’re ready and growing a self-operating team 

Laying the groundwork of communication between you and your partner 

Managing cash flow in your business and keeping a healthy safety reserve

Trusting the “whispers” that your gut tells you about your business

And So Much More!

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 Cover

Why switching jobs may be the ultimate hack to getting a better salary 

Whether you should max out your Roth, 401k, Roth 401k, or HSA

Getting a cash-out-refinance instead of stockpiling cash 

Whether or not paying off a rental property mortgage is a good idea

Renting vs. buying when living in an expensive market 

Combining finances as a couple and having the ever-important “money date”

And So Much More!

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 Cover

Why 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” trap

Buying foreclosures and BRRRRing properties to minimize cash needed for investing

Having control over your money so you have ultimate financial freedom

Why 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!