168: Finance Friday: Budgeting Expenses While Living on The Road with Renewable Energy Worker Clayton

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 5 February 2021

⏱️ 68 minutes

🔗️ Recording | iTunes | RSS

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Summary

A big piece of advice given by many wealthy people and real estate professionals is to simply “get started when you’re young”. This is exactly what our guest has done today. Clayton, a renewable energy worker, travels around the midwest for work, living out of an RV with his partner.

His company grants him a company car, a company phone, a food stipend, a handsome 401(k) match, and a comfortable salary. Clayton has taken advantage of these big perks by maxing out his Roth, buying a rental property, and using his primary home as a house hack. He’s checking all the boxes at just 26 years old, with a TON of potential to do more.

Clayton is close to having the big 3 things in life paid off: housing, transportation, and food. With extra income coming in every month, what can Clayton do to put himself in an even stronger position than before?

First, he’ll need to start budget and expense tracking. This is something many guests find challenging at first, but can really help alleviate any fears of where money is going. Next, he can start adding a bigger chunk of money to his rental property reserves, that way the mortgage is always being paid (even if someone misses rent). Last, he can start looking for another house hack and another rental property. Tune in to hear Scott’s ingenious way of looking for properties even if you’re on big sites like Zillow, Trulia, or even the MLS!

In This Episode We Cover

Why everyone should house hack when possible to do so
Frontloading your Roth and making sure you max it out every year
Bill tracking vs. expense tracking (and how one works better than the other)
How to use automatic budgeting apps to fine tune your spending
How to define your specific criteria when looking for rentals
Why landlords need a 6 month reserve for their rental properties
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow168

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Transcript

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0:00.0	Welcome to the Bigger Pockets Money Podcast show number 168 Finance Friday edition,
0:05.5	where we interview Clayton and talk about being intentional with your money,
0:09.1	saving for retirement and investing in real estate.
0:11.6	I took a little bit of a different approach than what people generally say with that, I guess.
0:17.0	So I tied in our mortgage into our personal expenses being that we are living there.
0:23.5	So that personal safety fund does include that mortgage if I lost my job and had to pay that.
0:29.6	So that does tie into that six months, but all the rent that we are getting from that,
0:33.7	we are building a separate account and trying to build up that reserve fund for the property as well.
0:40.4	Hello, hello, hello. My name is Mindy Jensen and with me as always is my doesn't believe in
0:44.9	breakfast burritos in the workplace co-host Scott Trunch.
0:48.2	Mindy, I would have started tockowing over these introduce-
0:50.9	I was terrible.
0:53.4	Scott and I are here to make financial independence less scary,
0:56.3	less just for somebody else to introduce you to every money story because we truly believe
1:02.3	financial freedom is attainable for everyone no matter where or when you're starting.
1:07.2	That's right, whether you want to retire early and travel the world,
1:09.6	go on to make big time investments in assets like real estate or start your own business,
1:13.2	we'll help you reach your financial goals and get money out of the way so that you can
1:17.0	launch yourself towards your dreams. Scott, I'm so excited to have Clayton on the show today.
1:30.2	It's really exciting to talk to people who are doing it right.
1:35.0	And first of all, I want to say if you think that you're not doing it right,
1:38.9	send us your finances. We'll talk to you too. This isn't just, hey, let's show everybody who's
	...

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