FIRE Without The Burn

FIRE Without The Burn

By Jenny SvelundBusinessEducationInvesting
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FIRE Without The Burn episodes

  • Episode 6 - Can A Drunk Conversation Predict A Recession?
    Show Notes:

    January 2004 was a time of great economic growth in the US. As you can see in the chart, there is a slight concave curve and a positive slope.

    In August of 2006, the yield curves had inverted, showing a convex shape. The economy had not been impacted yet; however, The Great Recession was less than 18 months away.

    Source: https://fred.stlouisfed.org/graph/?g=nf0p

    This graph shows the 2 year and 3 month yield curve spread over time. The shaded areas are US recessions.

    28 min
  • Episode 5 - New Year, New Goals
    Show Notes:Brendan Bruchard’s book - High Performance Habits

    I mentioned this book and Brendan’s 10 life arenas:

    • Health

    • Family

    • Friends

    • Intimate relationship - partner/marriage

    • Mission/work

    • Finances

    • Adventure

    • Hobby

    • Spirituality

    • Emotion

    He recommends writing out goals and ranking these areas from 1-10 weekly. To get a copy of the book, I would sure appreciate it if you use my affiliate link here: https://amzn.to/2C3fufM

    Questions I ask myself each week in each area and record on my google form:

    1. Rate myself 1-10

    2. Did I accomplish my goals from last week?

      1. Yes 100%

      2. Partially

      3. Not at all

    3. What are my goals for the coming week? (open ended)

    32 min
  • Episode 2 - Real Estate Analysis
    Get the full show notes at www.firewithouttheburn.com/podcastSummary:
    * Real estate investing from afar
    * Analyzing properties - rules of thumb and detailed analysis
    * Evaluate the property separately from the financing
    Rules of Thumb1% Rule
    * The gross monthly rents should be at least 1% of the purchase price
    * If you have a $100,000 property, it needs to rent for at least $1,000
    per month
    50% rule
    * Roughly 50% of the gross rents will go towards operating expenses and
    the remaining 50% will be available as cashflow
    * If gross rents are $1,000/month, you can expect about $500 in
    cashflow
    * This does NOT account for financing costs or debt service
    CAP Rate
    * This is your return on investment assuming a cash purchase (no
    financing)
    * It is calculated by taking your annual net operating income (gross
    rents minus all expenses but NOT debt service) and dividing that by
    the purchase price
    * My monthly net operating income is about $325, multiplied by 12 is
    $3,900 annually. The purchase price of the property is $56,900.
    $3,900/$56,900 = 6.9% return
    Cash-on-cash return
    * This is your after-financing actual return on investment
    * This is calculated by taking your annual net operating income,
    subtracting your debt payments, and dividing that number by the
    amount of cash you invested (down payment).
    * We didn’t calculate this for my property, but here is an example:
    o Monthly gross rents are $1,000 ($12,000 annually)
    o Monthly expenses are $600 (7,200 annually)
    o Net operating income is $400/month or $4,800 per year
    o If the mortgage is $300/month, that leaves you a net cashflow
    of $100/month or $1,200 per year
    o If your downpayment was $10,000, your COCR is $1,200/$10,000 =
    12%
    37 min
  • Episode 1 - Who, What, and Why
    Get the full show notes at www.firewithouttheburn.com/podcast

    DEBT REDUCTION CALCULATOR - VERTEX42

    I really like spreadsheets in general, but I absolutely LOVE this spreadsheet! You plug in all your debts, decide how much extra you can pay each month, choose which payoff method you want to use (snowball [lowest balance first] vs avalanche [highest interest rate first] vs custom) and watch as the spreadsheet populates a wealth of information! Details include a payoff graph, how much interest you’ll pay, how long it will take you, and a full amortization schedule if you want to get nerdy with me. Change your payoff method and watch everything update automatically! What happens if you get a bonus or a tax refund you want to throw at your debt? Go to the payment schedule tab and you can add one-time payments in column D. This shows you exactly how much to pay to each debt each month.

    Okay, okay, that’s enough excitement about this tool. Grab it for free here.

    IMPACT THEORY/TOM BILYEU

    Tom’s podcast has been instrumental in my life. I am sure that I could not have changed my finances without first changing my mindset, which is directly related to me listening to his show. If you haven’t checked him out, do yourself a favor and listen wherever you get your podcasts or here.

    Mint

    I mentioned that I began using Mint.com to budget and track my net worth in 2017. They’re a completely free (albeit ad-based) platform that easily links all your accounts to one place. It enables you to import your transactions, categorize, and summarize them easily. It also links to sites like Zillow for home value and Kelly Blue Book for car values, which can save a lot of time.

    DAVE RAMSEY

    I mentioned that reading Dave Ramsey’s “Total Money Makeover,” motivated me to start making changes. While I disagree with a lot of his advice, I agree that his debt pay down strategy called the “snowball method,” can be very powerful psychologically. If you want to read the whole book, get it here*.

    *This is an affiliate link, so I will be compensated if you purchase after clicking it. If you hate me and the show, don’t follow the link! On the other hand, if you’d like to support the show, please purchase through the link. :)

    32 min

About FIRE Without The Burn

From the publisher's feed

Plan for tomorrow and enjoy today. On this podcast we discuss ideas and strategies to achieve financial independence quickly without sacrificing what you love.