286: Finance Friday: Building Your Financial Runway Even with Irregular Income w/ Eric Dunn

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 25 March 2022

⏱️ 87 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

It's not uncommon to have irregular income as a business owner or self-employed individual. But with different amounts of money coming in every month, how can you budget, invest, or plan? Some months you’ll make a killing, while other months may have huge burn rates. How do you gain financial clarity when running multiple businesses with multiple income streams? What about becoming debt-free? Is it possible with such inconsistent income? This is how Eric Dunn has been feeling lately. After paying off a significant sum of debt, Eric has seen his income slowly rise and needs help ironing out his finances before he can invest in real estate. Eric has numerous businesses that haven’t been given the accounting love they deserve. Not only that, Eric has been trying to get his safety reserve up to hold himself over during the lean months of self-employment. Mindy and Scott work with Eric to build a financial framework that allows him to scale simply and with minimal effort. They also talk through self-employment tax, financial planning, safety reserves, renting vs. buying real estate, and more. If you’re a regular listener, you probably have more than one stream of income (or will in the future) making this advice worth its weight in gold so you don’t make some of the mistakes Eric is trying to avoid! In This Episode We Cover Paying off consumer debt and using it to propel forward your financial position Separating business and personal expenses so tax time is headache-free Financial planning and analysis, plus using it to model and predict future income Self-employment taxes and quarterly tax penalties that you can avoid as an entrepreneur Whether to rent or buy a home in today’s hot housing market (and strategies for both) Why your emergency fund is meant to be spent on the right things And So Much More! Check the full show notes here: https://www.biggerpockets.com/blog/money-286 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the bigger Pog its money podcast show number 286 Finance Friday edition where we interview Eric done and talk about getting real with your finances.
0:09.5	After having 30,000 grand in debt seeing that cash accumulate you know it feels good but also at the same time I got to realize seeing a zero credit card balance is also a good thing so.
0:22.7	Hello hello hello my name is Mindy Jensen and with me as always is my girl scout cookie loving coho Scott trench.
0:28.7	I'll take some of those types of introductions Mindy Scott and I are here to make financial independence less scary less just for somebody else to introduce you to every money story because we truly believe financial freedom is attainable for everyone no matter when or where you're starting.
0:41.9	That's right where do you want to retire early and travel the world going to make big time investments in assets like real estate or scale your personal business will help you reach your financial goals and get money out of the way so you can launch yourself towards those dreams.
1:03.9	Some Moa introductions like those I had to tag along to the girls co coo cookie theme.
1:09.4	Oh that was good it is we are in the middle of girls.
1:13.1	Girl's got cookie selling season here and I am the girls got cookie to manager so I have.
1:18.9	Who so many cookies in my house boy let me tell you they are very very very tempting.
1:23.7	I ordered a bunch of cookies from from and actually Claire and they haven't arrived yet so yes you know what has arrived.
1:30.9	No every single time I'm planning on coming into the office there's this huge snow store.
1:35.7	I like I guess I'm not going to get up to today but tomorrow physically tomorrow they will be in the office.
1:42.2	Right Tuesday there when yes I have I'm in the office tomorrow and Thursday.
1:46.7	Sounds great looking forward to them yes they're very delicious but we're not here to talk about girls got cookies.
1:52.2	We are here to talk about Eric done and his finances and Eric is this is a super fun show Eric is 26 years old.
1:59.7	He's a young guy he has made some you know traditional financial mistakes he makes out some credit cards.
2:06.2	He wasn't paying them off he has now fixed those problems and he has a small business where he is making six figures.
2:16.2	But he is making some classic mistakes financially by mingling his business expenses with his personal expenses.
2:25.2	So some business expenses he's paying out of pocket from his personal life and I think that we've given him some good things to think about along the way with regards to separating those out business expenses should come out of the business income.
2:39.7	And I think that is going to be a big catalyst for him when he gets his finances in towards getting his finances in order.
2:47.7	Yeah I think I think I think that's right Eric has most of the core foundational elements of good financial management in place right he spends much less than he earns.
3:00.2	He's paid off all his bad debt he's investing for the future he's thinking about real estate investing.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.