How to FIRE in Your 40s on a Teacher’s Salary (or Average Income) (Finance Friday)

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 11 April 2025

⏱️ 56 minutes

🔗️ Recording | iTunes | RSS

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Summary

Is it possible to reach FIRE by 45, even on a teacher’s salary or an average income? Today’s guest is proving that, yes, you can retire early, regardless of your paycheck. It may be a little harder than it is for high-income earners, but with frugality, discipline, and smart investments, regular people can achieve FIRE! Welcome back to the BiggerPockets Money podcast! At just 31 years old, Kat has been diligently maxing out her retirement accounts, saving a ton of cash, and making enormous strides towards retiring by age 45. Most would say this is a long shot for someone with a teacher’s salary, but thanks to a high savings rate and savvy financial decisions, Kat is right on track to reach her lofty goal. The real question is, should she? Kat will need to grind for the next 15 years to retire on her original timeline. Is it worth taking an extra couple of years to reach financial independence if it prevents burnout? In this episode, Mindy and Amberly will break down Kat’s options, help her avoid the dreaded middle-class trap, and give her a roadmap for achieving FIRE quickly while also enjoying the journey! In This Episode We Cover Kat’s roadmap to FIRE by age 45 (on a teacher’s salary!) Why you DON’T need to be a high income earner to retire early When to stop contributing to retirement accounts and pivot to other investments Giving yourself financial flexibility by saving cash (and how to deploy it) When you should (and shouldn’t) pay off your mortgage early Why it’s worth taking extra time to enjoy the journey to financial independence And So Much More! Links from the Show Mindy on BiggerPockets Scott on BiggerPockets Listen to All Your Favorite BiggerPockets Podcasts in One Place Join BiggerPockets for FREE Email Mindy: [email protected] Email Scott: [email protected] BiggerPockets Money Facebook Group Follow BiggerPockets Money on Instagram “Like” BiggerPockets Money on Facebook Subscribe to the BiggerPockets Money YouTube Channel! The Simple Path to Wealth The Fioneers Coast FI Calculator FIRE Faster with the Book, “Set for Life” Sign Up for the BiggerPockets Money Newsletter Find an Investor-Friendly Agent in Your Area BiggerPockets Money 259 - Pensions 101: Are Pensions Worth It? w/ Grumpus Maximus Connect with Amberly Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-629 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	What if you could access your retirement funds years before traditional retirement age without paying hefty penalties?
0:07.3	Today's Finance Friday guest is hoping to retire by the age of 45, but she doesn't have a really clear understanding of the investing order of operations and what is best, quote unquote.
0:18.6	Today, we are going to break down the options that she has to make
0:22.0	her FI dream a reality in just 14 years. This is a great episode if you're worried about
0:27.7	the middle class trap and how to make sure it doesn't get in your way of financial freedom.
0:38.4	Hello, hello, hello, and welcome to the Bigger Pockets Money podcast.
0:41.6	My name is Mindy Jensen.
0:43.0	And with me while Scott Trench is out on paternity leave is Amberley Grant.
0:47.8	Hello, I'm happy to be back here hanging out with you, Mindy.
0:51.8	I'm so excited you're here.
0:53.3	All right, guys, I'm going to put on my best
0:54.8	Scott impression, hopefully better than last time. Bigger Pockets has a goal of creating one million
1:00.3	millionaires. You are in the right place if you want to get your financial house in order
1:04.3	because we truly believe that financial freedom is attainable for everyone, no matter what or when
1:10.6	or where you have started.
1:12.4	I think you're really starting to get that. Again, Scott's voice is a little lower, but that was
1:17.3	spot on. Okay, Kat, thank you so much for joining us today. We're so excited to talk to you.
1:22.9	Yay. Thank you so much for having me, Mindy. Thank you, Amber Lee. So nice to meet you guys.
1:28.2	It's nice to meet you, too. Kat, can you share where your journey with money begins?
1:33.5	I can. So I was brought up in the middle class, and my parents really, like, set the stage for me in terms of money and how to work with money.
1:46.4	And ultimately they taught me a few values. They taught me a value of frugality and they taught me
1:53.3	a value of generosity. And the value of frugality, even though, you know, we could afford all the things we needed to afford.
	...

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