How to Save Money (EVEN if Your Accounts Are At $0)
Once you know how to save money, you can start stacking those savings to buy real estate and businesses or invest in long-term wealth-building investment accounts. But, without a steady stream of savings coming in, you're treading water, and one emergency expense could completely blow you off course. In a high-cost-of-living area like Washington, DC., this can seem even harder as rent, gas, and going out prices are far above the national average. But, there are some surefire ways to save (and make) more every month.
On this Finance Friday episode, we talk to Richard, a government tech worker who makes a great salary but could potentially be bringing in much more. Richard’s dream of being the President naturally led him to real estate investing, and now he’s focused on building bigger, stronger, and smarter income streams so he has ultimate time freedom (and a high net worth) in the next few decades. But even with his tech salary, Richard struggles to save every month, with random expenses knocking him out as soon as they arise.
Mindy and Scott go through Richard’s income and expenses as well as his debts, much of which are forgivable student loans. Richard debates whether sticking with his perk-heavy government job is worth the pay difference he could gain in the private sector. And whether or not buying cash-flowing businesses is a smart move, especially for someone without much savings. If you’ve struggled to boost your bank account, this episode may hit close to home!
00:00 Intro
02:32 Income, Expenses, Assets and Liabilities
04:59 Richard's Money Story
10:24 Building Up Your Savings
14:56 Student Loan Forgiveness
17:25 A Better Way to Budget
26:03 Increasing the Income
37:02 Buying Businesses
52:06 Action Items
Show Notes at:
www.biggerpockets.com/blog/mo...
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Past Episodes Mentioned in Today’s Show:
Money Date: www.biggerpockets.com/blog/bi...
Prenups: www.biggerpockets.com/blog/mo...
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The Ultimate Beginner’s Guide to Saving Money:
www.biggerpockets.com/blog/sa...
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The Stupid-Simple Budgeting Trick I’m Using to Stop Blowing 5 Figures a Month:
www.biggerpockets.com/blog/ho...
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The Cash-Flow Boosting Businesses that Savvy Real Estate Investors Own:
www.biggerpockets.com/blog/re...
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Try Qube’s Digital Envelopes:
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Connect with Scott and Mindy on BiggerPockets:
Scott: www.biggerpockets.com/users/s...
Mindy: www.biggerpockets.com/users/m...
Episode 363
#biggerpockets #biggerpocketsmoney #money363
Пікірлер: 14
This was an interesting episode. It was a good reminder that sometimes we should have bigger dreams than we are dreaming. But I did notice after more than 1/2 way through, I was thinking a lot of negative thoughts and I found myself thinking dream "crusher" thoughts. I think I went from motivated to the dream crusher because I feel the dreams he mentioned, seem completely out of line with his current reality. So at some point through the episode, I felt like the young man is living in fantasy world. It's like he wants to go straight from negative 50 degrees riding the the bus line to 80 degree tropical weather on a privately owned island with a yacht! And Like in 10 seconds flat. The talk of business acquisitions & purchasing wineries while basically being flat broke, just doesn't make any sense to me. I don't mean to be harsh, and I think he would benefit by facing his true reality. Scott's book has a great plan to follow & I think it would be great for this young man. Some sacrifice/house hacking/real estate investing would probably move him along nicely :)
Don’t try for a home run my friend, get to first base first. I believe you will get your castle in the sky but eat the elephant one bite at a time.
I hope he does well; he seemed to lack focus and has high targets, which is excellent, but those are just dreams without direction.
Great advice on the possibility of a job change. A simple increase in salary to $140K per year will make up that difference and allow him to pay off the loan with the extra salary. If he is good and motivated, he'll easily move up each year.
Dream-big optimism can distort your vision if your reality is a fantasy. Great expectations don’t always precede extraordinary results and lasting success needs a foundation of proven principles to build upon. Starting from scratch to Build your first castle takes a lot of patience and resilience. Everything in life is a gradual process and you can’t skip steps, even when the picture in your mind is crystal clear 🏰
Loved this discussion thank you!
I write my spending down on a 3x5 card I keep in my wallet. At the end of the month I total my categories and enter the amounts into my spreadsheet
Should have purchased a warranty on that Ford Truck.
Very inspirational
Powerful episode
Ynab!
Working from home, proximity to the office is of less importance . Move 40 or 50 miles further from DC and save $1000 per month on rent. Wife's job probably involves travel anyway. Find a lower tax area to live.
Seems very confused not focused he’s all over the place
@ianmurray332
Жыл бұрын
Of course he is. He is young, trying to figure things out, and has a ton of options. That is often harder to navigate.