Rahkim Sabree “aspired to be poor” when he was growing up. He saw his parents collecting section 8 housing vouchers, getting food stamps, and thought that this was the way life was. He didn’t grow up around many homeowners. All of his friends lived in apartment rentals and were in the same financial situation as him. There were no “financial literacy talks” at Rahkim's dinner table.It wasn’t until Rahkim left college and got a banking job that he decided to look at where his money was going and what it was doing for him. He started reading books like Rich Dad Poor Dad and The Millionaire Next Door, which shifted his mindset and gave him the foundation to chase financial freedom. He bought a duplex, house hacked it, and started throwing all the money he could into investments.As his own financial knowledge began to grow, he was able to share what he learned with others. He’s written two books, spoken at TEDx talks, and been invited to numerous conferences to speak. This didn’t bode well with his employer, who would consistently ask him whether his outside-of-work activities were clashing with his nine-to-five responsibilities. After hearing this over and over again, he decided to “fire his boss” and focus on building his own income, all without an emergency reserve stashed away! In This Episode We CoverWhy it’s so difficult to break out of poverty without financial educationDeciding to house hack so your mortgage can be offset Why you should always keep a safety reserve in case of emergencies Maxing out your 401(k), HSA, and ESPP contributions Thinking of low-interest credit as another type of safety reserveKnowing when the appropriate time to leave your W2 is And So Much More!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

BiggerPockets Money Podcast

217: Don’t Quit Your Job, “Fire Your Boss” on Your Terms w/ Rahkim Sabree

Amanda is making a teacher’s salary and spending her weekends working a part-time job at a grocery store. She contributes to her retirement accounts, but she could be sitting on a passive income gold mine that she doesn’t realize. Attached to Amanda’s home are a casita and a mother-in-law suite. The casita is rented out to long-term tenants and the mother-in-law suite has been used as a short-term rental for some time. But what if instead of keeping her casita as a long-term rental, she converted it into an Airbnb? Well, Amanda could potentially see a rent increase of almost 3x what she currently is renting at!With this house hacking model that Amanda is using, she’s able to get owner-occupied financing with lower interest rates and better terms. So what if she could start doing this with other houses and slowly grow a short-term rental empire? As Scott and Mindy discuss, it’s possible! In This Episode We CoverThe importance of side-income streams when you work a lower-paying jobTurning extra bedrooms into short-term rental incomeHouse hacking and the benefits of owner-occupied financing Calculating your hourly rate for different tasks and focusing on those with the highest ROIChasing financial freedom and the importance of using time how you see fitAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterGet Tickets to BPCon 2021Short-Term and Vacation Rental DiscussionAvery Carl’s Short-Term Rental InterviewSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

216: Finance Friday: Turning Spare Bedrooms into $1,000+ Extra Every Month

After years and years of working in licensing, Diania Merriam opened up her credit report and saw that she was (collectively) $30,000 in debt. This forced her to ask the question, “what am I working for?” It made sense at the moment: you get your paycheck, you can go out to a fancy dinner, you get another paycheck, you can buy yourself something nice. But Diania wasn’t happy, or at least as happy as she thought she’d be.She realized that she didn’t want to be stuck in a job she had to go to every day. She wanted autonomy, freedom, and financial independence that would allow her to rule over her schedule and pursue her passions and interests. So, she went to work and started saving whatever she could. She stopped eating out, started cooking all her meals, moved to a more inexpensive city, bought a house and house hacked, heavily invested in retirement, and did everything right.Now, she’s self-employed, hosting the Optimal Finance Daily podcast and the EconoMe Conference in Cincinnati. She was able to create her dream roles because she came from a position of financial strength, she also had a plan in mind and knew what her “worst-case scenario” looked like.In This Episode We CoverGetting out of consumer and student debt as quickly as possibleMinimizing expenses and maximizing income to increase savings ratesBuilding a strong financial runway so you can start your own businessBuying a house and house hacking by renting per roomUnderstanding your “worst-case scenario” before you take the leap into entrepreneurialismFinding your passions and cementing what you want to do when you reach FIAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterGet Tickets to BPCon 2021The Shockingly Simple Math Behind Early RetirementGet Tickets to the EconoMe Conference and USE CODE BIGGERPOCKETS for a DiscountBiggerPockets Money Podcast 01 with Mr. Money MustacheBiggerPockets Money Podcast 120 with Michael KitcesBiggerPockets Money Podcast 153 with Bill BengenGrab the House Hacking StrategyCheck the full show notes here: https://www.biggerpockets.com/moneyshow215See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

215: FI: More Than Retirement, a Chance to Take Risks w/ Diania Merriam

It’s hard to imagine what someone is going through once they’re given a cancer diagnosis. The last thing many people want to think about during such a troubling time is finances. This was true for Zachary, who’s combined net worth with his partner more than doubled while he was supporting her throughout her chemotherapy and cancer surgeries.Even though it was a medically troubling year, Zachary and his partner were able to almost double their income, while keeping expenses fairly low. This allowed them to set a 50% savings rate and keep enough to pay for treatments, retirement investing, and even save for IVF (in vitro fertilization). Since IVF is such an expensive treatment, Zachary wants to know how he can best position himself to pay for it while his partner reduces her time at work to take care of their future children.In This Episode We CoverBecoming cancer free after a stage three diagnosis (wooooo!)Doubling your income by making intelligent career changesShort-term rentals vs. long-term rentals and the risks of bothPlanning for medical expenses like IVFContributing to HSAs, Roth IRAs, and 401(k)sManaging a 10-bedroom “sorority house” And So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterGet Tickets to BPCon 2021You Need a BudgetSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

214: Finance Friday: Fighting Cancer, Starting a Family, & “Planting Seeds”

﻿Growing up in Mexico, Saul Tijerina didn’t fully understand the concept of financing. It wasn’t that he couldn’t conceptualize financing, it was more that he wasn’t around it enough to think of it as an option. In Mexico, everything was sold for cash, whether it was a home, a car, or a new TV. Owning something meant that you really “owned it”, not just “I’m paying this off.”It’s no surprise that when Saul came to the United States to work, he was in for a financial shock. New car? Finance it. New house? Finance it. Want to eat out every day? Charge it to your credit card and finance it! This was the cycle that Saul was in for close to two decades, before discovering the FI movement.Once he started digging around online forums, blogs, and YouTube channels, he found a community that not only hit financial independence but hit it at an impressively young age. Now, about two years into his FI journey, Saul has made monumental progress with saving and investing. He’s on track to retire as a millionaire in 2026 and will live off of his taxable accounts until he is old enough to take out funds from his tax-advantaged investments.In This Episode We CoverWhy lifestyle creep can be incredibly dangerous for young adults Paying attention to the interest credit cards charge and never falling into high-interest debtWhy financing a brand new car can be a huge blow to future wealth accumulationStaying away from the “two-income trap” and keeping expenses lowRoth IRAs, 401(k)s, Conversion Ladders, and other retirement accountsSaul’s 72 Hour Rule for spending (especially online shopping)How to get your partner on board for FI when they may not know about financial possibilities And So Much More!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

213: Retiring in 6 Years After 20 Years of Money Mistakes

Starting a strong financial position in your youth is probably the most important thing you can do to hit financial independence. Sometimes that strong position includes maxing out retirement accounts, like Roth IRAs, 401(k)s, or even HSAs (health savings account), but sometimes, it doesn’t. Scott and Mindy talk to Kirsten about the potential option of pausing her retirement contributions to buy a duplex so she can house hack.While this may seem counterintuitive, pausing retirement contributions isn't always a bad thing. This is especially true if you’re trying to do something that will radically change your income or expenses, allowing you to invest more into retirement later on. This episode runs through house hacking, retirement contributions, FHA rules for owner-occupied loans, how to graduate with no debt, and when the best time to have a “money date” is. It doesn’t matter if you’re in your early 20s or mid-40s, these principles are key to having a financially successful life.In This Episode We CoverHow to aggressively invest so you can retire young The importance of side-income and why you should have multiple streams of incomeRoth IRAs, 401(k)s, and HSAs (health savings accounts) Graduating from college debt-freeWhether or not life insurance is necessary for young peopleHaving “money talks” and “money dates” with your partner House hacking and using real estate to catapult your wealthAnd So Much More!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

212: Finance Friday: When Should You Pause Your Retirement Contributions?

It’s nice to hear a fan of the BiggerPockets Money Show talk about how they are on the path to financial freedom. It’s even nicer when we hear that the fan, Melissa Yi, went from a negative net worth to now $100k+ due to some simple tips from Scott and Mindy.Melissa had stints in her childhood where she was facing homelessness, not knowing where her next meal was coming from. She worked hard after high school and ended up at a job that offered to pay for her college education. A year away from graduating, she made the decision to quit, without savings, another job lined up, or a way to pay for school. She took out student loans, auto loans, and sunk into credit card debt.At one point, Melissa looked around and realized she had a lot of stuff. Stuff that wasn’t doing anything for her, except for filling up her garage. She sold what she could, started bringing in side income streams, and stopped eating out. These small changes allowed her to slowly pay off her debt and get to a positive net worth. Now, she’s at the $100k+ point and slowly coasting her way to financial independence! In This Episode We CoverThe importance of financial education when growing up Taking advantage of company-sponsored tuition reimbursement Why you should never cash out your 401(k) or other retirement accounts Credit card debt and why it’s so bad for uninformed consumers Using a live in flip to make a killer profit while paying $0 in taxesSetting up retirement accounts and maxing them out whenever possibleAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterMelissa’s Facebook PostCutting Your Grocery Bill in Half with Erin Chase from $5 Dinners Check the full show notes here: https://www.biggerpockets.com/moneyshow210Privacy Policy and California Privacy Notice.

211: From -$28k in Debt to $107k Net Worth by Cutting Out the Unnecessary

Teachers do a lot more than we give them credit for (as shown throughout the past year and a half), but sadly, they don’t get paid terribly high salaries. Today’s guest, Stephanie, is a music teacher for young children and is debating whether or not she should make a career change to up her income to higher levels. Stephanie has a good amount in savings and investments but wants to take on a duplex to house hack and save money on monthly housing costs.Scott and Mindy walk through the pros and cons of house hacking and answer questions about live in flips. The best part about Stephanie’s story is that she has the option to move anywhere in the United States. She has nothing holding her to New Jersey and may be keen to move out due to the high taxes she has to pay.With the combination of a career change and the potential to do a live in flip/house hack on the horizon, Stephanie has a lot of great (and broad) options to help her reach financial independence!In This Episode We CoverChanging careers to maximize financial independence goalsStarting a side hustle so you can earn extra incomeRoth IRAs, 401(k)s, and Solo IRAsHouse hacking as a means to not only cut housing expenses but build wealthWho should (and shouldn’t) do a live in flipShould you pay off low-interest debt or invest?And So Much More!Privacy Policy and California Privacy Notice.

210: Finance Friday: Should I Leave Teaching to Pursue Greater Income?

Growing up, Bola Sokunbi had some serious financial influence from her parents. Her father would tell her “Don’t be penny wise and pound foolish” while her mom showed her the importance of being an independent woman who could financially stand on her own. They both influenced her to become the financial author, mentor, and teacher she is today with Clever Girl Finance.Bola split her youth between Europe and Africa, and when given the chance to go to college back in Europe, her mom cashed out her retirement savings to give her daughter the gift of education. Bola worked through college and graduated with zero debt! She then went on to live in New York City, making $54,000 a year at her first job, which to her, was like getting a million dollars!As she saved up to buy her first home and later started investing in more growing assets, she saw her friends who made 3x her salary, spend all their money on designer handbags, expensive dinners, and luxury apartments. She knew she didn’t want to be surrounded by financially irresponsible people, so she distanced herself from those friends, and began her journey to FI.Now, Bola has a business pulling in six figures every month! She teaches women how they can start investing, have financial confidence, and live life on their terms. In This Episode We CoverThe importance of education, even in today’s world The great sacrifices Bola’s parents made for her to be successfulStarting side income streams so you can invest and save moreSelling the investments you don’t feel comfortable with, and why everyone doesn’t need to be a landlordSaving a massive financial runway before quitting your full-time jobStarting Clever Girl Finance and her new book The Side Hustle Guide And So Much More!Privacy Policy and California Privacy Notice.

209: Creating Financial Runway to Start a 7-Figure Business w/ Bola Sokunbi

We’ve said it before and we’ll say it again: it’s never too early to start your journey to financial independence. Today we talk to Mackenzie, a 23-year-old college graduate, working a government job and paying for only minor expenses. She has a serious emergency fund she’s managed to save up and has questions on house hacking, setting up retirement accounts, and the fastest way to get to FI.When you start your financial journey at such a young age, you have many different opportunities. Even just maxing out your Roth every year may be enough to make you a tax-free millionaire, but what about more aggressive strategies like owning rental properties or even shooting for a far higher-paying job? These are all questions that Mackenzie wants answers to, so we have Scott and Mindy here to help!In This Episode We CoverLiving at home when you’re young to save money on rent and foodGraduating debt-free so you can come out of college ready to build wealthTSP accounts, Roth accounts, and the 457 planHouse hacking as a way to fund future investmentsLooking for other jobs or side income that can help you increase your investing rateAnd So Much More!Privacy Policy and California Privacy Notice.

208: Finance Friday: 23 Years Old, Steady Pay, Low Income, Should I Invest?

Part of the reason we started the BiggerPockets Money Show was to share financial stories from all different backgrounds, giving you, the listener, confidence to reach your financial goals regardless of the stage you’re at in life. There’s no better story or person to personify this than Dr. Lakisha Simmons. Lakisha grew up in Indianapolis, born to teenage parents who didn’t have much. She spent the majority of her youth living at different family members’ houses, shopping bargains, and being content with having enough to get by. She started working at 14 years old and has fond memories of taking her paychecks to the bank so she could deposit them in her own checking account. When Lakisha hit some road bumps in her personal life, she put her children first and sold her home, started renting, and dove heavily into FI. She managed to hit a 60% savings rate as a single mother, thanks to her helpful side-income streams. Now, after almost 3 decades of working, she’s ready to retire, spending time with her children and teaching other women how they can do the same. In This Episode We CoverHow growing up in poverty can lead to living frugally in the futureWhether or not student loans are worth it for the paycheckLooking at ALL your bills and only paying for things that bring you valueRenting vs. owning a home, and how it affects your bottom lineTaking advantage of 457(b) plans for government employees And So Much More!

207: Comfortably Retiring in Her 40s as a Single Mom with $850k Net Worth

For most people, there tends to be a specific point in your life when you think, “I want to travel” or “I want to spend time pursuing my passions”. For today’s guest Ainsley, this happened about two years ago. She has spent the last decade or so being a stay-at-home mom, but is looking to up her household income by getting a job that will provide an extra $36,000 a year to the family budget. Her main question: what should this extra income be used for?Mindy and Scott come up with a step-by-step approach to hit financial freedom, even if you don’t have a large amount of cash or investments. Lucky for Ainsley, her home in the Pacific Northwest appreciated close to $150,000 in just the past year alone! Plus, she also has retirement accounts that she and her husband actively contribute to.While they’re doing many things right, they could improve on some simple things like boosting their emergency fund, starting an HSA, contributing to a Roth IRA, and getting their income up as much as possible. This is a great episode for those who don’t want to get into real estate, and instead would rather have passive investments growing on the side!In This Episode We CoverMindy and Scott’s 7-step plan to hit financial freedom The importance of keeping a healthy emergency fund (and where to store it)The pros and cons of taking out a HELOC on your primary residence Always getting the 401(k) match whenever presented with oneESPPs (employee stock purchase plans) and how to take advantage of them Roth IRAs, Roth 401(k)s, and other tax-deferred accountsInvesting in a regular brokerage account once you have maxed out retirement And So Much More!

206: Finance Friday: The 7-Step Plan to Financial Freedom

There are lots of twists and turns throughout every investor's journey, but maybe not as many as Zeona McIntyre’s. Growing up with the words of Suze Orman in her ear, Zeona knew that there were a few things she had to do, like max out her Roth IRA every year. It wasn’t until Zeona was talking to a friend who told her about Airbnb arbitrage that she realized a future in real estate investing may be the most successful.Before there were many short-term rental laws, people would Airbnb out of their own rented apartment, often without the landlord’s permission. Before you go off on Zeona in the comments, know that she does not do this anymore, and a few of her landlords were surprisingly okay with the plan. Since then, she has purchased 11 doors that she rents out, both to short and long-term tenants. You’ll hear how Zeona used private funding, an unfortunately-fortune life insurance payment, and many other creative methods to get her to financial independence in just 2 years!In This Episode We CoverAirbnb arbitraging and why it was so popular in the early days of short-term rentalsPaying off student debt but feeling like you’re not “moving the needle”Why it’s so important to consume financial information at the beginning of your careerDealing with the death of a loved one, and finding ways to honor their memoryCOVID’s impact on Airbnb and the short-term market in generalAnd So Much More!

205: From $50k in Debt to Financially Free in 2 Years w/ Lots of Ups & Downs

We all know someone who hustles. Maybe it’s your sibling or your friend, or maybe you’re the hustler in your group. Those who hustle to make more money seem to always find new ways to bring in more cash, and that’s exactly what today’s guest, Alicia, is doing. Alicia jokes that she has 2-4 jobs, because in the day she’s working 65 hours a week at a media company, but is also a “saloon girl” and professional singer on the side. How many moms do you know that can ride a mechanical bull? Well, Alicia can!Alicia recently purchased a rental property in Detroit that is giving her a 20% return! This is far higher than most real estate investors anticipate, and for her, it’s a blessing on her path to hitting passive FI. She was able to buy this rental in cash with a 401(k) loan, but with some taxes looming on the horizon, Alicia is asking whether or not paying off the debt or buying another property is the best move to hit her financial freedom goals.In This Episode We Cover401(k) loans and when (or when not) they’re appropriate to use for investment purposesGetting 20% ROI with section 8 tenants in DetroitWhy side income streams are important for any new or established investorHow live in flips still provide great returns even in a hot marketKnowing which debts to pay off slowly and which debts to get rid of fastAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterGrowing Your 401k vs. Liquidating It to Invest in Real EstateIs a Live In Flip Right for You? Here’s How to TellFeline Good Social ClubCheck the full show notes here: https://www.biggerpockets.com/moneyshow204

204: Finance Friday: Single Mom Making 20% ROI on Detroit Rentals

What’s your excuse for not hitting financial freedom? Maybe you work at a low paying job, maybe you only have one income for your household, or maybe you’re caring for a few kids, limiting the income you can save and invest. Prepare to have your excuses obliterated, because today we’re talking to Rob and Sam, who raised their 14 children on one income alone. And we aren’t talking about a $500k per year income, we’re talking about a median income!Rob and Sam always wanted a big family, and luckily, they were raised in frugal households, allowing them to save every penny, shop the deals, and have a budget. While Sam was at home raising the children, Rob was out working and slowly paying off their house early, without Sam’s knowledge. One day, Rob told Sam that the house was paid off, which came as a huge surprise to her!He had also been maxing out their Roth IRAs, his 401(k), and their HSAs. Rob was doing all this while comfortably raising 14 children. How is that even possible? Well, you can learn all about their tips, tricks, and budgeting tactics by buying their new book: A Catholic Guide to Spending Less and Living More: Advice from a Debt-Free Family of 16! In This Episode We CoverSetting up budgeting, expense tracking, and being deliberate with your spendingMaxing out your 401(k) match, your Roth IRA, and your HSABeing frugal so you have more money to spend on the important thingsFixing up a foreclosed house to save money when shopping for a homeGetting out of debt so you can tackle bigger (good) debtsBecoming intentional with your spending, saving, and investingRaising a family of 16 with a single incomeAnd So Much More!Links from the ShowBiggerPockets Money Facebook GroupBiggerPockets ForumsFinance Review Guest OnboardingScott's InstagramMindy's TwitterMad FientistCheck the full show notes here: https://www.biggerpockets.com/moneyshow203

203: 14 Kids, One Income, and STILL Retiring 10 Years Early

For those who have money… or want more of it! Join Mindy Jensen and Scott Trench (from BiggerPockets.com) weekly for the BiggerPockets Money Podcast. Each week, financial experts Mindy and Scott interview unique and powerful thought leaders about how to earn more, keep more, spend smarter, and grow wealth.

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