The Realistic, Repeatable Path to Investing for FIRE in Your 20s

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 27 September 2024

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

Young, old, or in between, you need to hear this episode! Today’s guest paid off over $80,000 of debt, grew her net worth to $100,000 and did it all just years after graduating from college without a sky-high income. How did she make such quick progress, and what’s her secret to skyrocketing her net worth early in her career? She’s sharing it all in this episode, and you (no matter your age) can follow her repeatable path, too! Want to see your net worth leap so you can fast-track your road to FIRE? Anna Foley is the person you should listen to. Through common-sense smart spending, diligent investing, and salary-increasing career pivots, Anna and her partner went from $80,000 debt to debt-free and finally hit six-figure net worth status. The best part? They did all of it WITHOUT giving up what makes life enjoyable, and they still sport a phenomenal savings rate! Anna is sharing how she saves a significant portion of her income every month, why she decided to rent (not buy) a house, how “paying yourself first” can get you debt-free before you know it, and why she does NOT follow the traditional advice of chasing a “FIRE number.” In your twenties? Copy Anna’s plan! Closer to retirement? Follow Anna’s smart saving and investing tactics, and you can get there faster! In This Episode We Cover How to become debt-free and achieve a six-figure net worth before you’re thirty! Why Anna decided to rent a house, not buy one, to maximize her savings What Anna invests 100% of her income in (it’s not real estate!) The “middle-class trap” to avoid when maxing out your retirement accounts Why you DON’T need a FIRE number, and why Anna’s more achievable goals work better Boosting your income and why job-hopping can explode your income-generating potential 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 @five20money on Instagram PassivePockets BiggerPockets Forums 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 558 - How to Start Investing for Retirement: 401(k), IRA, Roth? BiggerPockets Money 560 - Dude ACTUALLY Withdraws From His 401(k) and Retires at 47 Email Your Savings Rate to [email protected]! Support Today’s Show Sponsor, BAM Capital, Your Path to Generational Wealth with Premier Real Estate Investment Opportunities Reach FIRE Faster with “Set for Life” Find an Investor-Friendly Agent in Your Area See Mindy and Scott at BPCON2024 in Cancun! Finance Friday: How the “Middle-Class Trap” Stops Your Early Retirement Connect with Anna (00:00) Intro (01:10) Investing Right After College (03:00) Rent, Don’t Buy! (08:58) Paying Off $80K in Debt (12:42) Investing for Financial Independence (16:16) Saving a TON! (21:11) Better Than a “FI Number” (25:27) Boosting Your Income (27:19) Do This FIRST! (29:11) Connect with Anna! Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-567 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	At just 27 years old, my guest has already built a net worth of over $100,000 and is well on her way to financial independence.
0:09.2	But what does it take to grow your wealth at such a young age. How do you say disciplined, save
0:14.4	aggressively, and still enjoy life in your 20s? Today we're diving deep into
0:19.8	her mindset, strategy, and the steps she's taking to achieve financial independence.
0:24.7	Whether you're starting out or well on your way, this episode is great for what and all.
0:30.1	Hello, hello, hello, and welcome to the BiggerPockets Money Podcast. My name is Mindy Jensen and Scott
0:34.9	Trench is playing hooky today, so you just have me. I am here to remind you that Bigger
0:40.2	Pockets has a goal of creating 1 million millionaires.
0:43.8	You are in the right place if you want to get your financial house in order because I truly
0:48.0	believe financial freedom is attainable for everyone, no matter when or where you are starting.
0:52.4	Today we're going to discuss ways to invest early
0:55.0	with a salary below six figures,
0:58.0	how to pay down $80,000 of student loans,
1:01.0	and answer the question, should you have a fine number.
1:05.4	Anna, thank you so much for joining me today. I'm so excited to talk to you.
1:09.5	Yeah, thanks for having me. How long have you been investing? So I started investing when I graduated college back in 2021.
1:17.0	I just started out with my 401k. That's how most people start out. I didn't really know exactly what I was doing. Luckily my older
1:24.7	brother helped me out a bunch. He taught me all about investing and personal finance and what I should
1:29.8	be doing. So he eventually told me I should open up a Roth IRA so then I also got into that. So it's been about three or four years.
1:39.0	So he said you should invest in a Roth. What did he specifically teach you about
1:44.3	investing in personal finance? So he kept it pretty simple. He said that index funds are
1:49.5	the way to go, right? That's not new news. That's what all the finance people tell you to do so he said
	...

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