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BiggerPockets Money Podcast

248: Finance Friday: I Just Got a Big Raise, What Should I Do With the Money?

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.53K Ratings

🗓️ 12 November 2021

⏱️ 90 minutes

🧾️ Download transcript

Summary

Your late 20s through early 30s can be a financially troubling part of life. You aren’t making the most money you ever will, but you’re tackling big expenses. A wedding, a down payment, and trying to max out retirement accounts can put you in a financial tizzy. But, it doesn’t have to be so complicated, especially if you stick to a scalable investment strategy. Today’s guest Louise is in this position. She recently changed employers and found herself with a big uptick in monthly income. She has plans on the horizon to marry her girlfriend but knows this will come at the cost of many thousands of dollars (rings, dresses, etc.) She’s also looking at buying a primary residence, but is already familiar with the home buying experience (she has two rentals!) Louise has a plan to hit FI (or at least coast FI) by age 40 and wants to know the best way to optimize her finances to do so.  Scott and Mindy have a healthy debate over 401ks, Roth IRAs, refinancing rental properties, and combining finances as partners, in order to get Louise in the best position possible to tackle her financial goals.  In This Episode We Cover Why switching jobs may be the ultimate hack to getting a better salary  Whether you should max out your Roth, 401k, Roth 401k, or HSA Getting a cash-out-refinance instead of stockpiling cash  Whether or not paying off a rental property mortgage is a good idea Renting vs. buying when living in an expensive market  Combining finances as a couple and having the ever-important “money date” And So Much More! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Welcome to the Bigger Pog as Money Podcast, show number 248, Finance Friday edition,

0:04.8

where we interview the weas and talk about saving up for that next big expense.

0:09.6

I would like to be work optional by 40. So I've got a little over a decade to accomplish that,

0:17.1

and I'm trying to figure out how to prioritize this new income coming in so that I can accomplish

0:26.3

all of those things and sort of in what order I should prioritize them.

0:31.2

Hello, hello, hello, my name is Mindy Jensen and with me as always is my smart cookie co-host,

0:35.6

Scott Trecht. We're always baking up some new interest, Mindy. Thank you.

0:38.7

Oh, you're full of nuts. Come on!

0:40.7

What a sweet introduction. Oh, oh.

0:44.8

Scott and I are here to make financial independence less scary, less just for somebody else.

0:49.3

To introduce you to every money story, because we truly believe financial freedom is

0:53.2

attainable for everyone, no matter when or where you're starting.

0:56.3

That's right, whether you want to retire early in travel the world, going to make big-time

0:59.5

investments in assets like real estate, start your own business, do all of the above, and have a

1:05.1

pretty high-end wedding. We'll help you reach your financial goals and get money out of the way,

1:08.7

so you can launch yourself towards those dreams.

1:10.4

Scott, I'm so excited to talk to Louise today because she is kind of indicative of

1:23.3

several recent guests that we've had where she thinks she's here, but she's actually

1:29.6

kind of up here and she thinks she needs, it's going to take longer to save for what she needs,

1:35.2

or it's going, she's going to need to save more money than what she actually needs. And I think

1:39.9

that we are very helpful today, giving her a different way to look at where she's at financially

1:46.3

and where she's going. Yeah, absolutely. I think it's a pattern that maybe a couple of guests,

...

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