501: Finance Friday: When to STOP Investing and Start Saving Cash Instead

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 9 February 2024

⏱️ 51 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Do you have a cash flow problem? You’re not alone! Dan invests in real estate, has a great W2 job, and maxes out his investment accounts. He wants to hit financial independence by forty, but his lack of cash is making things difficult. Something’s got to give, and Mindy and Scott are here to help! Welcome back to the BiggerPockets Money podcast! Dan has done an amazing job investing for the future and house hacking throughout his 20s. But now he’s got a MAJOR problem on his hands. Although he and his wife earn around $200,000 per year, they have little to no cash available. With real estate debt, hospital bills, and new baby expenses, Dan is starting to feel the pressure. That extra cash he was able to accumulate only a few years ago? It’s not so easy to find anymore. In this episode, Mindy and Scott take a deep dive into Dan’s finances to help solve his cash flow problem. Should he follow his real estate dream and pause his retirement account contributions or pivot to a job that will increase his income by another $50,000 per year? Stay tuned to find out! In This Episode We Cover Savvy ways to increase your cash flow without taking on more debt Dan’s house hacking strategy that covers a HUGE chunk of his mortgage Using a home equity line of credit (HELOC) to buy real estate How to ask for a raise (and when to pivot to a higher-paying job) Investing in real estate versus building up your retirement accounts How Dan plans to reach $10,000/month in “passive” income by the age of forty And So Much More! Links from the Show BiggerPockets Money Facebook Group Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Mindy on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Money Moment Intentionally Choosing the Path to Financial Independence with Financial Mechanic Systematically Increasing Income and Intentionally Decreasing Spending with A Purple Life Breaking the Taboo of Talking About Money with Friends, Family, and Bosses Hear Dan on the “Real Estate Rookie” Podcast Click here to check the full show notes: https://www.biggerpockets.com/blog/money-501 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Hello our dear listeners and welcome to the Bigger Pockets Money Podcast. My name is Mindy Jensen and with me as always is my money savvy co-host Scott Trutch.
0:10.0	Thanks Mindy, great to be here with my You Can Always Bank on Her, co-host Mindy Jenson.
0:14.4	Oh, I like that.
0:15.4	All right, hi Mindy, we're here to make financial independence less scary, less just for
0:19.5	somebody else to introduce you to every money story including Dan's today because we truly
0:25.0	believe financial freedom is attainable for everyone no matter when or where
0:28.1	you're starting. On today's episode we're talking to Dan about how he can reach
0:32.4	his financial independence goal in 10
0:34.6	years by working strategically to decrease his spending and increase his income.
0:40.9	This is a great real life case study of a family that has a solid income
0:44.7	and some assets but needs a bit of a reset on the basic fundamentals and needs to do the
0:50.4	hard work of committing to the long-term resource allocation decisions.
0:55.9	Yeah, I think it's likely that a lot of people are struggling with the same high-level questions
0:59.7	that Dan and his wife are struggling with. And specifically, in this episode,
1:04.2	we're gonna talk about and reveal the struggle
1:06.2	and the tough choices you need to make
1:08.2	to free up cash flow and fortify your day-to-day
1:10.6	financial position and the equally hard and even more important
1:14.2	arguably long-term decisions about how to direct the large often automated flows
1:19.6	of cash to the investments that are truly congruent with your long-term goals, right?
1:24.7	Is that should you be always on with that 401k or should you be directing those flows to real estate?
1:31.1	Dan, welcome to the BiggerPockets Money Podcast.
	...

Transcript will be available on the free plan in -410 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.