298: The April Stock Market Slump | Mindy & Carl’s Budget Review

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 6 May 2022

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Stock market crashes aren’t common, but when they happen, they often catch you by surprise. Thankfully, we’re not in the middle of a stock market crash, but this current correction or “dip” we’re riding has got some early retirement and FIRE chasers feeling a little anxious. Carl and Mindy Jensen, real estate and index fund investors, have seen a twenty-five percent drop in their portfolio just over the past six months alone. What effect does that have on their future financial plans? Welcome back to this month’s episode of Carl and Mindy’s Spending Summary, where we finally get to see an under budget month! Thanks to some family frugality, Carl and Mindy were able to shop pretty light this April, even while going over budget on some essentials like groceries and medical expenses. This may be the last under budget month for a bit as some upcoming trips may prop up their expenses as we roll into summer. Carl and Mindy have also been keeping an eye on the stock market and how its performance is affecting their portfolio and future retirement plans. When Carl decided to step away from work five years ago, he had the tailwinds of a strong stock market at his back. But, with recent drops in stock valuation, it begs the question: would Carl still be able to retire early if the market conditions mirrored today? In This Episode We Cover The budgeting and expense tracking “slog” that helps you spend less and keep more Expensive summer trips and how to account for future travel in your monthly budget The Nasdaq’s rough month and what to do when stock indexes start to fall The 4% rule and how rough market conditions could hurt your early retirement plans Whether or not you should still retire during a market crash/correction And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Scott's Instagram Mindy's Twitter Apply to Be a Guest on The Money Show Podcast Talent Search! Subscribe to The “On The Market” YouTube Channel Listen to The “On The Market” Podcast: Spotify, Apple Podcasts, BiggerPockets Check Out Mindy’s 2022 Live Spending Tracker and Budget Hear Our Interview with 4% Rule Creator, Bill Bengen Michael Kitces’ Interview on FIRE and the 4% Rule The “Mile High FI” Podcast 1,500 Days to Freedom Connect with Carl on BiggerPockets Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Bigger Pockets Money Podcast, show number 298, Finance Friday edition,
0:05.7	Carlin Mitty recap on our spending for the month of April edition.
0:10.4	One of the reasons we keep track of our spending is to know how much is going out.
0:17.0	We put based our FI number on spending $40,000 a year, which is approximately $3,000 a month.
0:26.5	And clearly, we are not spending $3,000 a month. Our FI number, our retirement nest egg,
0:33.5	has grown because we have had such a great market tailwind behind us.
0:39.9	So we've done really well with that. But if we don't keep track of where our spending is,
0:46.3	it's just going to continue to go crazy and it will continue to grow. And then we could find
0:51.9	ourselves out of money. Carl is joining me today. This is my husband, Carl Jensen. You know him
0:58.0	from 1500days.com and from the Mile High FI podcast, also from the previous episodes of this podcast
1:06.0	where we have recapped our finances. Welcome back to the Bigger Pockets Money Podcast, Carl.
1:11.7	Thank you for having me. What's so funny? Thank you for having me. You're, you know,
1:19.3	contractually obligated. I guess not contractually obligated. You're meritorally obligated to join
1:26.1	me every month. Is marriage a contract though? Yes it is. Okay. What else did I sign on for that I
1:32.8	did not know about? Everything I tell you to do. Read the fine print folks. Read it.
1:39.4	Okay. Before we get to the show, let's hear a word from today's show sponsors.
1:50.6	Okay. So our March recap happened just a few episodes ago. And April recap is going to be rather
2:01.2	short and sweet. You can see an extensive list of all of our spending at biggerpuckets.com.
2:08.0	slash Mindy's budget. And we came in under budget for the first time this month. Yay! We did not
2:17.3	spend everything that we had planned on spending, but we did again go over budget on groceries.
2:23.5	And we had a medical expense that we, nor we just don't count for medical expenses. We are
2:31.1	generally healthy people. So we had a medical expense this month that's going to bleed over into
	...

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