162: Finance Friday: High Salary - But Nothing to Show For It. Cutting Unnecessary Expenses with Engineer Tracy
Play • 1 hr 25 min

As you go further along in your career, you should (hopefully) make more and more money, but does that justify spending more money? Most times, it doesn’t. We’re joined by Tracy, experienced engineer and retirement super saver to go through her budget, expenses, and investment portfolio.

Tracy has had a bit of a struggle with spending and expense tracking. A purchase here, some grocery shopping there, and by the time she added up her payments, she was consistently overspending by close to a thousand dollars, every month! Scott and Mindy have some great strategies to limit this type of random spending, and put your budget in the driver’s seat!

Tracy is also interested in acquiring a rental property in mid/late 2021, but she doesn’t have the cash savings she needs to do it. That doesn’t mean Tracy lacks money. Quite the contrary, Tracy has a very respectable amount of money stored between her different retirement accounts. She was lucky enough to take advantage of her company’s 15% 401(k) match (seriously, 15%)! 

Now the question is: does she limit her contributions so she can save up for a rental property or does she continue to max out her retirement accounts so she has a big cushion when she decides to stop working?

This is a very common question we get from listeners and members of the BiggerPockets community. You may be in the exact same position, all we can suggest is to tune in to hear what Mindy and Scott have to say!

In This Episode We Cover

  • Why employee match programs are so valuable for retirement investing
  • Whether or not you should keep an expensive car loan (or sell and get a cheaper option)
  • How to fight lifestyle creep and focus on your spending and investing 
  • The importance of manual expense tracking and budgeting
  • How bigger shopping runs can minimize your food budget every month
  • What type of savings you should have before buying a rental property
  • And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow162

ChooseFI
ChooseFI
The Unstuck Network
298 | Habits For Wealth Building | Rich and Regular
* We are checking back in with our Households of FI family, Martin and Ayesha, who have been paired with mentors, Julien and Kiersten of Rich and Regular. * Kiersten and Julien live in Atlanta and started working toward FIRE before they married five to six years ago and have paid off $200,o00 in debt, including their mortgage. They now share their journey on their blog rich & REGULAR. * Ayesha and Martin live in Chicago and found ChooseFI in January 2020 and jumped in with both feet. Martin is a natural saver and had been a positive financial influence on Ayesha before finding FI so they had done a decent job managing their money. * Martin was researching dividend investing after it was recommended by Ayesha's uncle who retired at 55. Ayesha felt like her aunt and uncle had the most fabulous retirement life she'd ever seen. Thanks to his example over the last 25 years, their goal is to get to where he is. * Julien had a similar retirement role model in his life. A close family friend was a Registered Nurse who retried early and showed him that there is a lot of life left after 40. * Since finding FI, and partly thanks to Covid, Martin and Ayesha's savings rate has increased. It has made them aware of all the frivolous, non-essential ways they spent money before. * Ayesha hates budgets and doesn't want to track every penny of her spending. She was out of work for four months during Covid and they found that they didn't miss her income and it showed them that they could save a good amount of money without feeling constrained or deprived. * Having a quantifiable goal and a clear target has helped provide clarity in what they are trying to accomplish. * Martin enjoys trying to optimize their spending and counting the dollars they save. When they decided to get a new television, he used Offer Up to do his research and purchased a flat-screen plasma HDTV for $40. * Julien used to track every single expense and look for new savings opportunities each quarter. But now, optimizing their spending has become such a deeply ingrained habit that he no longer feels the need to look at their budget. He says it becomes like muscle memory once you sort out your own system. * Ayesha feels like when you can simplify your life and have good habits, your life can smoothly and asked what Julien and Kiersten's top habits are. * Kiersten says doing laundry regularly keeps them from having a ton of extra clothes. She and their son have a capsule wardrobe with 20-30 pieces of matching items. She also keeps the kitchen sink clear of dishes to cut down on kitchen accessories. * Julien says they have just the right amount of things they need and notes that there is stress associated with the quantity and clutter in our lives. * Having too many things adds to decision anxiety and analysis paralysis. Instead, whether it is life or a financial strategy, find a handful of things you can nail every single time and ignore everything else. * Julien also says that he has never made an investment in himself that hasn't paid off handsomely, no matter if it is exercise equipment, a book, or a course. Don't allow frugality to prevent you from paying to learn new learning opportunities. New skills can improve your ability to earn more income or make you more marketable. * Kiersten likes to save receipts. if the item she purchased sits for several days, she didn't need it and will return it. She also purges the house of items regularly. * As far as community goes, Ayesha and Martin are doing okay. In addition to family, they have a group of friends who meet to share ideas on investing and becoming financially free. However, they aren't as familiar with the concept of FI so Ayesha feels like they don't have a like-minded community * Julien notes that, especially for black people, the pursuit of financial independence can be a very lonely experience. Telling people about FI doesn't work. You have to show them, like when you get to the point where you can take a two-week vacation or a month off from work. * Kiersten and Julien suggest focusing on influencing the next generation. They use their freedom to step up and help out and pick up the slack with their friends' children. * When it comes to building community, stay open-minded. It takes time to find your best friends and others whose values closely align with yours, but you don't need to divorce yourself from your social circle. * Like their budget, Julien doesn't check his investment portfolio very often because they won't be touching that money for 10-20 years. His attention is better spent on building the business and maintaining a healthy lifestyle. They make decisions on where to invest income every quarter. * You can see the crash coming on other people's lives despite the advice you may have given. Still, Julien says to leave the gate open and don't be judgemental. You may not have been the right messenger for that message. * Before starting rich and REGULAR, Julien was working for a company he loved but was underpaid. When his company paid an influencer $10,000 for posting a photo on Instagram, it motivated him to start earning income in other ways. * Since they already had rental real estate, he was confident he could earn more outside of work. He was eventual led into the world of digital entrepreneurship. * When Kiersten was finally comfortable enough to leave her job, they were not yet at FI, but a year's worth of runway that enabled her to quit and devote that time to building the blog. * The FI community often talks about what number is needed to hit FI, but that number is arbitrary. A single dip in the stock market can impact the number. Julien and Kiersten ask if you were counting on drawing down that money, what would you do for money now? * Most people only earn income one way, through earned income. They don't know enjoy the quality of that income over any other. * Kiersten and Julien attend FI meetups in Atlanta and other places and encourage Martin and Ayesha to do the same when they are able. * Julien had challenges at the beginning of his journey. He grew up poor and was judgemental about his beliefs on spending. He found virtue in saving and said hurtful things to Kiersten because he felt she was spoiled. He's since learned leading with shame creates barriers. * Whether a natural saver or a natural spender, everybody is spending. Spending today can be rewarding and motivating. * Kiersten was also judgemental in a different way. She thought she knew how her life was going to be and was closed-minded. She struggled with seeing a different version of herself. She had to be open and let go of her ideas of what certain aspects of her life would look like. * If they came into a windfall of money and weren't allowed to invest in themselves or their business, they would invest the money in low-cost index funds and then let it grow and forget about it. * Discipline equals freedom. When you set up a framework for life by setting up non-negotiable things, it allows you the freedom to spend time doing the things you'd rather be doing. * Brad agreed with Julien's sentiment about investing in yourself and that the spirit of frugality can get in the way of that. Watch out for it. * The local groups are the heartbeat of the FI community. They aren't made up of podcasters and bloggers. They are regular people who are getting together and trying to live better lives. * Website:  rich and REGULAR * YouTube: Money on the Table Resources Mentioned In Today's Conversation * ChooseFI Episode 224 Introducing our Households of FI Part 2 * ChooseFI Episode 251 Brad Connects with Martin and Ayesha * Find your local group at ChooseFI.com/local. If You Want To Support ChooseFI: * Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.  * Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.
1 hr 29 min
The Stacking Benjamins Show
The Stacking Benjamins Show
StackingBenjamins.com / Westwood One Podcast Network
Business Case Studies To Make Your Family Finances Sing (with John Warrillow)
John Warrillow has built and sold many businesses, and has created a business value builder system used by thousands of businesses worldwide. With many, many years of experience under his belt, John knows a thing or two on how to bring value to a business. Today, he brings that wealth of knowledge with him to help make better financial sense for your family. Tune in for an insightful discussion featuring case studies, interesting stories, and maybe a new way of looking at your family's financial picture. Hot take incoming: every time you make a bad financial decision and lose big (let's say shorting GameStop to the tune of $200,000), maybe you should blame someone else and sue them to recoup your losses! Sound crazy to you? Tell that to Christian Iovin, the man suing leading Reddit investor "DeepF$%kingValue" over his part in the short squeeze. During our headlines, Joe and OG give a thorough deconstruction detailing how the "get-rich-quick" mindset can lead a person down some strange paths - including thinking that a social media figure is responsible for your investing choices. While we aren't without sympathy, we break down how Iovin willingly made his choice on what he thought was a great deal at the time, and offer up some sound advice to not get yourself caught between a rock and hard place - short squeeze or otherwise). We'll keep today's theme going with our second set of headlines. Bill Gates is now officially "meh" on Bitcoin (it's an improvement!), and financial advisors are ready to back the truck up to crypto. Now hold on a second if you think you know where this is going. We're not here to preach #teamcrypto or denounce the movement either way. What we are saying, like in our interview with John Warrillow, is that you need systems. We've said the same thing about Tesla and Apple, and the rules don't change for Bitcoin. The biggest danger to your portfolio isn't a Redditor or Capitol Hill, it's you. The best thing you can do for your bottom line is taking yourself OUT of the equation. Enough of that, moving on. Finishing out today's show is a Haven Life line question from Zac. He asks... (checking notes...)... is putting $20 a week into a somewhat random stock that has shown positive growth a good idea? Truth be told, we could have went a lot of different ways with this one. I'm proud to say the guys put some thought into this one, and not only give Zac an answer, but dive into some explanations on different stock analysis theories. Of course, Doug always gets some airtime for his trivia. Enjoy!
1 hr 23 min
Be Wealthy & Smart
Be Wealthy & Smart
Linda P. Jones
Interest Rates Are on the Rise
Learn why interest rates are rising and what sources of inflation are driving them. The article is here. Are you investing well for financial freedom...or not? Financial freedom is a combination of money, compounding and time (my McT Formula). How well you invest, makes a huge difference to your financial future and lifestyle. If you only knew where to invest for the long-term, what a difference it would make, because the difference between investing $100k and earning 2% or 10% on your money over 30 years, is the difference between it growing to $181,136 or $1,744,940, an increase of over $1.5 million dollars. Your compounding rate, and how well you invest, matters! INTERESTED IN THE BE WEALTHY & SMART VIP EXPERIENCE? -Asset allocation model with ticker symbols and % to invest -Monthly investing webinars with Linda -Private Facebook group with daily insights -Weekly stock market commentary email -Lifetime access -US and foreign investors, no minimum $ amount required Extending the holiday offer, enjoy a 50% savings on the VIP Experience. More information is here or have a complimentary consultation with Linda to answer your questions. For an appointment to talk, click here: https://2909395.survey.fm/application-for-vip-experience PLEASE REVIEW THE SHOW ON ITUNES If you enjoyed this episode, please subscribe and leave a review. I love hearing from you! I so appreciate it! SUBSCRIBE TO BE WEALTHY & SMART Click Here to Subscribe Via iTunes Click Here to Subscribe Via Stitcher on an Android Device Click Here to Subscribe Via RSS Feed WEALTH HEIRESS TV Please subscribe to Wealth Heiress TV YouTube channel (it’s not just for women, it’s for men too!), here. PLEASE LEAVE A BOOK REVIEW Leave a book review on Amazon here. Get my book, “You’re Already a Wealth Heiress, Now Think and Act Like One: 6 Practical Steps to Make It a Reality Now!” Men love it too! After all, you are Wealth Heirs. :) Available for purchase on Amazon. International buyers (if you live outside of the US) get my book here. WANT MORE FROM LINDA? Check out her programs. Join her on Instagram. WEALTH LIBRARY OF PODCASTS Listen to the full wealth library of podcasts from the beginning. Use the search bar in the upper right corner of the page to search topics. TODAY'S SPONSOR I want to take a few seconds to tell you about how I “read” more books and stay ahead of the curve. It’s by not reading books, but instead listening to them – like you are right now! With Audible, there are over 150,000 titles to choose from for your iPhone, Android, Kindle or mp3 player and…your first audiobook is FREE! I suggest you get the audio book of Think and Grow Rich, or you can check out my website Resources page where I list all of my favorite financial books and you see exactly what books I have read and recommend you read. Then get started with Audible by visiting https://lindapjones.com/FreeBook and order your first audio book free! Get Think and Grow Rich or another book from my recommend list, and be sure to get started checking off the books you want to read with your free book from Audible! Be Wealthy & Smart,™ is a personal finance show with self-made millionaire Linda P. Jones, America’s Wealth Mentor.™ Learn simple steps that make a big difference to your financial freedom. (Some links are affiliate links. There is no additional cost to you.)
16 min
Millennial Money
Millennial Money
Shannah Compton Game
Simplify, Organize, and Maximize Your Money | Tania Brown
What is the value of time when it comes to your money? Most financial experts preach that you need to consistently get rid of expenses in order to thrive financially. However, there is a good argument that spending money on things that create more time is actually one of the smartest money moves you can make. In this episode, Tania Brown, Certified Financial Planner and owner of Financiallythrivingmom.com is showing you why you should invest in your areas of struggle in your life and breaking down how to simply, organize, and maximize your money. What You'll Learn * How spending money can help you create time * Easy ways to organize your money * Ways to create a life around what matters to you most * Simple money tricks for moms to simplify their money * Meet Tania Tania Brown, an Army veteran, is a CERTIFIED FINANCIAL PLANNER® and the owner of FinanciallyThrivingMom.com. Over her 18-year career, she’s taught time-saving tips to help thousands of busy moms at multiple Fortune 500 companies learn how to simplify, maximize, and organize their financial lives so they can build financial security and create a life they love. When she is not nerding out over the latest budgeting app, Tania is living out her other passions: fostering teens, volunteering, serving at her church, and continuing her never-ending quest of finding the very best chocolate. Links * Financiallythrivingmom.com  * About Tania Episode Sponsors Prose is the healthy hair regimen with your name all over it. Take your FREE in-depth hair quiz and get 15% off your first order today! Go to _prose.com/mymoney._ Get started with the MANSCAPED™ Perfect Package 3.0! Get 20% Off and Free Shipping with the code SHANNAH at Manscaped.com. Make it the year you finally cross life insurance off your list, and get protection for your loved ones. Go to Policygenius.com and get started. You could save 50% or more by comparing quotes and start the new year with one less thing to worry about. SUBSCRIBE & SHARE Want to be the first to know when new episodes are released? Click here to subscribe in iTunes! IT’S FREE! 👉 Sign up for my weekly LET’S TALK MONEY email newsletter. Ask Shannah Have an Ask Shannah question, submit it here Get Social * Shannah on Twitter * Shannah on Instagram
40 min
The David Bach Show
The David Bach Show
David Bach
028: Becoming Unstoppable with Jamie Kern Lima
In this episode, I’m super excited to be speaking with my new friend and powerhouse entrepreneur, Jamie Kern Lima. Jamie is the co-founder of IT Cosmetics and the first female chief executive in L'Oréal’s history. She has also been featured on the Forbes list of “America’s Richest Self-Made Women” since 2017, and is one of the most recognizable faces on QVC TV. In her new book, Believe IT: How to Go from Underestimated to Unstoppable, she shares her unbelievable true story of building a billion dollar business from her living room. Unfortunately, society doesn’t teach us how to believe in ourselves, and that’s why Jamie’s book is vital for today’s times. If you want to find out why rejection is actually just grace in disguise and how to overcome self-doubt on your path to success, then this conversation is exactly what you need today. Also, don’t miss Jamie’s FREE 1-DAY LIVE CONFIDENCE-BUILDING VIRTUAL EVENT! - Monday February 22, 2021 @ 7AM PST | 10AM EST. In this session, here’s what we cover: * Why rejection is a good thing in business, and how to turn setbacks into lucrative partnerships. * The story of how Jamie went from a struggling waitress to launching a dream company from her living room. * How to believe in yourself, even when you feel like you’re crazy. * Why listening to your intuition can help you improve judgement. * How the power of storytelling can help you build your business. * How to create something that works for you, and turn it into a valuable product for others. * The story of how Jamie Kern Lima built the largest beauty brand in QVC history. * Why not giving up is the most genius thing you can sometimes do. * Using rejection to understand what’s missing in your business. * Tips on finding your authenticity and why you can’t fake it. Interview Resources * Believe It: How to Go from Underestimated to Unstoppable * Join Jamie Kern Lima’s insider team * Preorder the book from Amazon, Barnes & Nobles, Book Depository, BAM!, or Indie Bound * FREE 1-DAY LIVE CONFIDENCE-BUILDING VIRTUAL EVENT! * Media request contact form for TV, print, and podcast interviews * About Jamie Kern Lima * Connect with Jamie Kern Lima on Instagram, Twitter, and LinkedIn * Jamie Kern Lima on QVC * IT Cosmetics * Jamie Kern Lima on Wikipedia * David Bach on Oprah * Smart Women Finish Rich * Smart Couples Finish Rich * The 3 Minute Sunday Newsletter * Finish Rich by David Bach Company * Growthday Coaching with David Bach * The Latte Factor: Why You Don’t Have to Be Rich to Live Rich Get Access to More Great Content! To get access to the best financial tools, resources, and advice to help you LIVE RICH NOW, visit www.FinishRich.com Connect with David Bach * Instagram * Facebook * Twitter * YouTube
47 min
BiggerPockets Real Estate Podcast
BiggerPockets Real Estate Podcast
BiggerPockets
446: Pivoting the Goal and Swapping Doors for Cashflow with Kyle and Lauren Clugston
Have you ever had analysis paralysis? Maybe you have it right now and that’s why you’re listening to this episode! Kyle and Lauren Clugston would call that “productive procrastination”, and the only way to get out of it is to move forward! They should know, it took them over 3 years before they made their first move in real estate investing!  In college Lauren stumbled upon Brandon’s old blog about real estate investing. As she read, she gained more confidence in the craft, and knew that real estate was what she wanted to do with her money. She then started trying to convince her partner, Kyle, that real estate investing was the way to go. As someone without an investing background, Kyle was hesitant, but took a leap of faith which paid off! Now they're BRRRR-ing their way through New Jersey, with single family and multifamily properties throughout the state. Lauren and Kyle had to learn a lot before they became the real estate success stories they are now. Things like doing inspections, estimating rehab costs, getting financing, setting up systems and procedures, and getting legal documents prepared were at one point a great challenge to Lauren and Kyle. Now, they’ve got them down! Lauren and Kyle lay out everything they wish their former selves had known, and go through the things that early real estate investors should worry about, and the things they definitely shouldn’t lose sleep over. This advice could save months, weeks, or hours off of your deal analyses and might be just the thing you need to get out of analysis paralysis!  In This Episode We Cover: * Why house hacking is such a great strategy for new investors * Focusing on the right metrics, whether it be cashflow or units * Defining your specific roles as partners and investors  * The importance of weekly meetings with your team * Setting up your real estate to run like a business, not just a hobby * How to put together an “invest with us” packet for private lenders * And SO much more! Links from the Show * BiggerPockets Forums * Grant Cardone * BiggerPockets Youtube Channel * Brandon's Old Blog * BiggerPockets Webinars * BiggerPockets Rehab Estimator Calculator * BiggerPockets Podcast 398: 22 BRRRR Properties in Under 10 Hours Per Week with Tarl Yarber * Bathroom Example (file) Check the full show notes here: http://biggerpockets.com/show446
59 min
Real Estate Rookie
Real Estate Rookie
BiggerPockets
Combining House Hacking and Live in Flips with Tyler Madden
Talking to Tyler Madden for any more than a minute, you can tell that he’s a smart guy. But would you ever guess a general contractor and real estate investor has degrees in biology and chemistry? Probably not! Tyler went to school to be a doctor, but after leaving school he found himself in the restaurant industry. He was serving tables, which later turned into bartending, and later managing the restaurants himself. He enjoyed the growth he found in the restaurant industry but realized that there was a cap to the success.  At the same time, Tyler was fixing up his primary residence every so often, learning new tricks of the trade from online. He got so good at fixing up his own house, other people started asking him to take care of projects on their houses. Tyler loved fixing up houses, and decided to get his general contractor license and start up his own business.  Tyler was even inadvertently house hacking and doing a live in flip/rehab on his first primary home without even realizing it. He rented out a room in his house while he was fixing up the property, which helped him cover a lot of costs. When Tyler and his wife decided to move into another house, they kept it as a rental property, and held on to a LOT of equity that he is now using to pursue future deals. He’s had a fire in a home, a break-in, and at one point had 40 cop cars surrounding him with guns drawn (he shares in the episode). Tyler is an interesting guy, and has a lot of knowledge to share on rehabbing, contracting, cost estimating, and financing!  In This Episode We Cover: * How doing a great remodel can boost up the price of your house significantly * Taking out HELOCs (home equity lines of credit) and keeping them around for future financing options * Starting an LLC so you can take advantage of financing later on * Using high-end finishes vs. using standard finishes for rentals * How to get your spouse on board when they are worried about real estate risk * Making offers on and off market so you can get a deal in an expensive area * And SO much more! Links from the Show * Real Estate Rookie Facebook Group * BiggerPockets Podcast * Ashley's Instagram * Tony's Instagram * Redfin * Zillow * Rookie Podcast 48: 4 Ways Newbies Can Finance Deals with Richard Kelly * BiggerPockets Podcast 189: 500 Deals, the $100,000 Wholesale Paycheck, & the Systems That Make it Work with Tarl Yarber * BiggerPockets Podcast 438: The Ultimate Beginner’s Guide to Finding GREAT Deals in ANY Market with Anson Young * PropStream Check the full show notes here: http://biggerpockets.com/rookie55
1 hr 1 min
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