In this episode, we talk about Dave Ramsey's 7 baby steps on how you can build wealth! we dive into each step and discuss the pros and cons of following this guide!

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Show Notes:

Who is Dave Ramsey and what is the 7 baby step?

He is a radio show host, author of several books, and a businessman. 

The 7 baby steps is his method of teaching people how to leave poverty and build wealth

The 7 baby steps

Save $1,000 for your starter emergency fund

Pay off all debt (except the house) using the debt snowball method

The debt snowball method is paying off debt from smallest to largest. 

Save 3-6 months of expenses in a fully funded emergency fund

Invest 15% of your household income in retirement

Save for your children's college fund

Pay off your home early

Build wealth and give.

In this episode, we talk about what is happening with the Tesla stock and if you should HODL or not! We dive into what is driving the prices up as well as what the 5-1 stock split means for Tesla as well as its stock price!

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Show Notes:

Brief overview of what Tesla is

Why is the price so high? 

Tesla shares have gained 255% this year, and are up 550% in the past 12 months 

There is a lot of hype behind its products and services.

Elon Musk is idolized by his fans so they keep pushing the price higher

Tesla stock has announced a 5-1 stock split on August 31, 2020. Another reason why it is currently soaring. This is the same day Apple will split its stock 4-1.

What does stock split mean? And why do it?

It gives new investors more of a chance to buy its stocks now because it will be at a lower price.

Tesla competitors: 

No true competition yet. Some major car companies and new start ups like Nikola are out there.

Should you invest

It is an extremely risky investment. Most of its stock appreciation is either due to hype or possible future growth and value the company will bring.

Fahad and I have made over 30% within the past week or so trading Tesla/Apple

In this episode, we talk about the top 5 places where you can keep your hard earned cash! We go into details on the types of places you can keep it as well as the risk level that entails with keep your money in those spots!

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Show Notes:

Why you should never have cash on your hand

Inflation is on average 2% a year. 

This year inflation with be 4% due to all the cash the feds are pumping, so it is not safe to keep cash in your checking account.

Savings Accounts

You can currently get up to 1% interest rate on these. You will still lose value on your dollar due to inflation, but its a safe bet as it is FDIC insured up to $250k.

This should mostly be the case if you are trying to buy a house in the future or saving up for another big purchase.

Certificate Deposits (CD’s)

These are usually short term investments that range from 3-12 months time frame. 

These are at an all time low as well an (around 2%)

US Treasury Bills

One of the safest investments in the world (Due to this being backed by the US government itself)

Rates are absolutely terrible (0.10% For one year)

Stock Market

Has an average growth rate of 7% a year. 

If you invested in it when the pandemic hit, you would be up 50%. If you invested at an all time high before the pandemic hit, you would only be down 0.6%

Real Estate

Housing prices on average increase with inflation rate. This to a certain degree makes it a safe investment

Mortgage rates are at an all time low. 30 year are below 3% and some 15 year are below 2%.

In this episode, we talk about how you can retire only using a dividend portfolio! We dive into the details of using DRIP as a impressive and unique investment tool to help expedite your retirement plans! We talk about how you can use this tool to exponentially grow your portfolio! 

 

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Show Notes:

What is dividend 

A dividend is the distribution of some of a company's earnings to a class of its shareholders

Should you use this method to retire?

Pros

You Can use DRIP (Dividend Reinvestment)

Using DRIP, These can buy stocks at “fractional shares”

Most companies let you repurchase 3-5% cheaper than the stock value if you DRIP.

These are commission free (but most companies do not charge commissions anymore)

Lets you dollar cost average (one of the best ways to build wealth)

You get a monthly, quarterly, bi annually, or yearly payout.

If you had a dividend portfolio with $100k, which you invested $20k in every year, with a 5% yield and 3% stock appreciation and lets say 1% dividend growth, you will have about $1.5M in your portfolio after 20 years, with an annual dividend of $90K.

If you did the same thing with stocks with an average rate of return of 7%, you’d have 1.2M portfolio with no dividends. 

Cons

These are considered taxable income, so these do need to be reported on your tax return (can be ways to defer through retirement plans)

These can be cut down at the companies discretion, and usually are during recessions and downturns.

For episode 25, we brought over 2 wonderful guests over to our show, Ian and Shaye! They both come on our show and give us some insight into their finances. You will get to see two completely different worlds in this episode! Be sure to watch!

 

Ian and Shaye also have a podcast called "Camp ReEducation" You can check them out here! (https://open.spotify.com/show/4ZJBBztQVmVgF1WwCbITc0) 

 

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In this episode we talk about if Airbnb is a good investment for you! We talk about the pros and cons of owning an airbnb investment property. We discuss all the possible hidden fees that can occur, which a regular LTR property may not have!

 

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Show Notes:

Is airbnb a good investment?

Pros:

The short term rental market is growing

It is expected to grow 8% annually

High rental income

You can get a lot more income in prime locations rather than renting your place.

I.e: You can rent out a place in Orlando for about $120 a day (60% occupancy rate, monthly $2160) and average rent is $1400 a month.

You can use the place for vacation yourself!

Landlord/Tenant laws don't apply.

Cons:

You will have to get a PM

They end up charging 25-50% of your income which can be quite high. 

This can be a fixed fee as well, but might not be worth it depending on occupancy %.

Income can be irregular

It takes time to build up your ratings and reviews.

You might get charged certain fees for HOA or the local community

Regulations can end up hurting you (NYC banned airbnb for rental shorter than 30 days)

You are responsible for all bills (Taxes, Electricity, Gas, etc)

NOTE! I made an error saying the the fee for renting Uber in NYC is $300 a day. I meant to say a week. Got very confused regarding the timing of this as it was a while ago and doing the podcast on my own made me slip up as well. Will try to be more cognizant moving forward! 

In this episode, I talk about if you can make a living off of ride sharing services such as uber/lyft/via. I get into the basics of how much you actually make from these services on an average basis and also discuss how this income can vary on a case by case basis! Be sure to listen until the end to get the full insights into this!

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Show Notes:

Different types of ride sharing services

Uber/Lyft/Via etc

How much do drivers earn on average?

Pay Per Hour: $8.55 - $11.77 after expenses (gas, insurance, etc)

This income can vary on many factors

Location

You can be actually making around 60-100k if you were driving in NYC.

Type of services

Uber has different standards meaning you can drive regular Uber or Uber luxury, which would obviously pay more

Surge pricing

Some drivers know how to take advantage of this and can and will only work during surge pricing to get the most money for their time.

Expenses

If you have your own car, plates, insurance, you will be 100x better off than the person who will rent a car

Give personal examples of your bro in law or my bro.

Pros and cons of ride sharing

Pros

You are your own boss

You can work your own hours

You make your own income and don't have to rely on anyone

You can use multiple different providers and don't have to stay committed to one

You can expand into food deliver as well on downturn moments

Cons

Uncertainty in the market based off of rules and regulations

Possibility of getting “fired” based on reviews and performance

No health insurance through the company due to you being an independent contractor.

In this episode, we discuss if you should aim for LeanFire or FatFire! We dive into the main differences between the two as well as each ones pros and cons. We also provide examples from reddit on how fatfire can vary immensely from leanfire. We also discuss what our personal preference would be on which one we would rather choose (LeanFire or FatFire)

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Show Notes:

What is leanfire & fatfire

LeanFire is normal fire or someone who lives in the frugality sense and is willing to continue that lifestyle.

FatFire is someone who doesn't want to change or get rid of their lifestyle and wants to retire upon that lifestyle. 

Normal goal for retirement is to save 25x your annual expenses.

Should you go for learnfire?

If you plan on cutting all extra expenses from your life.

Live in a very frugal manner

Live in a low cost area or country.

Per census data, the average US household spends around $61k a year. Are you willing to live below that to achieve this goal?

Should you go for fatfire?

You are a high income professional.

Do not want to give up your current lifestyle as an end goal

Willing to go the long run in the beginning to continue living life as is

Example, in NYC if you are living off $100k a year, you will need to save up 2.5M to retire in NYC. That means you'll have to save a lot of your income now and increase your income to be able to retire comfortably in NYC.

Reddit example:

https://www.reddit.com/r/fatFIRE/comments/8yrgwa/what_are_the_pros_and_cons_of_achieving_fatfire/

In this episode, we discuss how you can retire abroad! We discuss the step by step process you need to take to kick off your process on retiring abroad. We talk about how to find the best type of place to retire and what the cost of living is within those countries/cities. We also discuss the pros and cons of moving abroad and retiring there. Best of all, you can do it at a fraction of the price of living in the United States!

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Show Notes: 

How can you retire abroad? WHY?

Find the place you would like to retire

Check their residency requirements (Can you stay permanently with a visa? Do you need to file certain paperworks)

Is the weather catered to your needs? (hot or cold weather)

Is the cost of living reasonable for your retirement fund or passive income?

How much taxes will you have to pay?

Is there crime within this area?

Am I allowed to own the property? (places in dubai specifically call these freehold properties)

Is there enough transportation

Once you have found the location, now start seeing if you have the funds to help you sustain your lifestyle

This means do you have enough of a retirement fund to retire abroad?

In the USA, you might need around $1M+ to retire relatively comfortably, but in central America, half of that could let you retire luxuriously.

Pull only a certain percentage point from your savings/investments yearly and not to live above your means

Examples of places you can retire:

Panama

You can retire here comfortably with just $800-1200 a month. That means you only need a portfolio of $400,000 (high end) to retire. Meaning you will draw down on 4% yearly on this to be able to live comfortably in Panama.

They offer visa retirement packages which has a lot of perks (discount on flights and entertainments)

Good and affordable healthcare.

Malaysia:

Average cost of living is around $1000-1300. Similar to Panama.

You can rent a 1 bedroom apartment for $400 a month. This just gives you insight into their cost of living right off the bat.

Beautiful landscapes and places to visit. 

India/Pakistan

Average rent price in lahore $150. Average rent price in New Delhi $240 for 1 bedroom.

Average cost of living for both places range $500-700 a month.

Thank you for getting us to 20 Episodes! We appreciate all your love and support for our podcast!

In this episode, we discuss if its worth it for you to refinance your mortgage! I personally would say to look into this especially with todays all time low interest rates. This can help shave off a lot of money every single month that you can either use to pay off your mortgage faster or you can use it to invest into the market to help you earn more ca$$$h!

Ep 17 - (https://bit.ly/31oRFx3)

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Show Notes: 

Should you get your home refinanced?

Advantages of getting your home refinanced

Better mortgage rates

Lower monthly rates. So lets say your mortgage is currently $1,910 on a 500k house at 4%. Let’s say you refinance it to 3%. Your new mortgage will now be $1,686. This is a $224 monthly difference.

If you have an adjustable rate loan you might want to choose a fixed rate loan

You can shorten your term from 30 to 15 years if it's worth it.

You can borrow money which is a cash-out refinance, you can borrow against your home equity to obtain funds for any purpose.

My favorite one, get rid of PMI if it is applicable for you.