How to Reach FIRE Based on Your Income ($45K - $100K/Year)

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 1 October 2024

⏱️ 38 minutes

🔗️ Recording | iTunes | RSS

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Summary

What does it mean to “win” financially in your income bracket? To us, the end goal is always FIRE (Financial Independence, Retire Early), and if you’re chasing financial freedom, this is the show for you. We’re breaking down the money moves you need to make based on your income bracket, going from $45,000 to $100,000 per year, and how to stretch your dollar the furthest so you can invest, save, and reach FIRE faster. If you’re at the lower end of the income scale, we’ll give you time-tested methods to boost your income and use your time wisely so you can start stockpiling cash TODAY. If you have a high income, there’s still work to be done as you need to find the best way to keep the most of your income so you can use it to acquire wealth-building assets. Regardless of how much money you make, you CAN achieve FIRE if you know the proper steps. The good news? We’re sharing those steps today, so stick around! In This Episode We Cover How to speed up your path to financial independence based on your income bracket Why we disagree about retirement account investing when you’re just starting your career Ways to make more money and side hustles that can boost your income The headache-free vs. hands-on approach to investing for FIRE (and who should take which path) Lifestyle creep and avoiding overspending (EVEN if you have a higher income) How much money we reasonably think you’ll need to achieve FIRE 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 BiggerPockets Money 32 - Financial Freedom Through Small Life Changes and a Modest Real Estate Portfolio w/Planting our Pennies BiggerPockets Money 35 - Hacking Your Life to Live for (Almost) Free with Craig Curelop BiggerPockets Money 97 - Intentionally Choosing the Path to Financial Independence with Financial Mechanic BiggerPockets Money 110 - Systematically Increasing Income and Intentionally Decreasing Spending with A Purple Life BiggerPockets Money 169 - Breaking the Taboo of Talking About Money with Friends, Family, and Bosses w/Erin Lowry BiggerPockets Money 328 - The Best Alternative Investment No One Knows About w/Alex Breshears and Beth Johnson The One Thing How to Win Friends and Influence People The E-Myth Revisited The Go-Giver The Challenger Sale Learn Private Money Lending with “Lend to Live” Find an Investor-Friendly Agent in Your Area See Mindy and Scott at BPCON2024 in Cancun! FIRE in 2024: What We’d Do Differently If We Started Over Today (00:00) Intro (01:08) $45,000/Year Income (12:37) $75,000/Year Income (23:11) $100,000/Year Income (28:48) How Much for FIRE? Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-568 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	Wealth Building isn't just about how much you earn, but how much you save and invest, which is why today we're diving into a topic that I think is going to resonate with a lot of people.
0:11.0	How to win financially, no matter what income bracket you're in.
0:15.3	Whether you're just starting out with a low salary, climbing your way up, or already
0:20.0	earning a six-figure income, there are strategies that can help you reach your financial
0:25.0	goals. Hello hello hello and welcome to the BiggerPockets Money Podcast. My name is Mindy Jensen
0:29.7	and with me as always is my definitely in some income bracket co-host Scott Trench.
0:35.0	Capital introduction Mindy, just capital. Bigger Pockets has a goal of creating one million
0:40.0	millionaires. You are in the right place if you want to get your financial house in order and achieve some capital gains,
0:46.0	because we truly believe financial freedom is attainable for everyone, no matter when or where you're
0:50.0	starting.
0:51.0	And today we're going to discuss how to make the biggest financial impact
0:53.8	at 45 75 and a hundred thousand dollars a year in income to propel you on your
0:59.4	financial independence journey. We're going to talk about what investment strategies should stay the same
1:04.0	between those three income brackets and what should be different as you increase your
1:07.9	income. Okay, Mindy, so let's start off with how you would approach a $45,000 per year salary starting today.
1:15.6	Okay, at the very beginning of the intro I said, wealth building isn't just about how much you earn,
1:20.7	but how much you save and invest.
1:22.7	And in the $45,000 tax bracket,
1:26.3	in the $45,000 income,
1:28.3	you don't have a ton of opportunities
1:31.4	to save and invest in large amounts. I want you to first go back to the basics. You are
1:39.2	likely at the more of the beginning of your career and you have the you to max out your Roth IRA. The contribution limits for under 50, 2024 is $7,000. That is a little bit
	...

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