321: From Spending Six-Figures a Year to Saving 80% of His Income

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.5 • 3K Ratings

🗓️ 25 July 2022

⏱️ 80 minutes

🔗️ Recording | iTunes | RSS

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Summary

Living paycheck to paycheck isn’t sustainable. But, if you’re in this position, you already know that. The stress of always worrying about bills, scrounging for money, and never really feeling security can eat away at you. This is how Anthony Michael felt, but surprisingly, he wasn’t making a small amount of money. He and his wife were making six figures, but only saving around $200/month. This was far less than Anthony was comfortable with, so he sat down, crunched the numbers, and started taking drastic actions. After he was able to increase his savings rate tenfold, he knew the extra money he was bringing in needed to be deployed. He started listening to The BiggerPockets Real Estate Podcast, read Rich Dad Poor Dad, and saw that house flipping could be his way to real estate riches. He found a partner, picked an area to invest in, and since then has madeflipping homes his top money-marker. Anthony’s story didn’t always go to plan. He had house flipping budget busters that forced him to use much of his emergency savings, a “partner” who ran off with thousands of dollars, and other fumbles along the way. But, all these mistakes lead to Anthony being in the position he is in today, and maybe you can avoid some of his pricey mistakes simply by hearing his story. In This Episode We Cover How lowering your expenses is a faster way to save than increasing your income Flipping products online and choosing side hustles that can quickly bring in some cash House flipping and how (when done right) it can be a killer side hustle for new investors The “BRRRRbnb” short-term rental bringing in over $500 per night Real estate partnerships and what to look out for before you start sending money Credit card debt and how to use it the right way when investing in real estate And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Mindy's Twitter Listen to All Your Favorite BiggerPockets Podcasts in One Place 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 David on BiggerPockets David’s Site From Military to Millionaire Airbnb PropStream MLS Bonds: The Perfect Inflation Hedge (with One BIG Caveat) Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! Click here to check the full show notes: https://www.biggerpockets.com/blog/money-321 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 321, where we interview Anthony
0:05.3	Michael and talk about an 80% savings rate, avoiding lifestyle creep, and of course, investing
0:11.3	in real estate.
0:13.2	When you do find yourself in this position, not being over leverage is so, so key because
0:21.5	I have private money invested, money, about 120,000 worth of it, right?
0:29.2	I never fall below in my savings account, less than a year of expenses in all the capital
0:37.3	that I borrowed from my private money investors.
0:40.4	Period.
0:41.4	So, we stay relatively liquid, just on the base of like, I don't know what's going to happen.
0:47.9	I always think of the worst case scenario, and if you're prepared for that, everything
0:52.2	else is great.
0:53.2	Hello, hello, hello, my name is Mindy Johnson, and joining me today is the Military Millionaire,
0:58.8	David Paray.
0:59.8	Howdy, always a pleasure Mindy.
1:02.1	David and I are here to make financial independence less scary, less just for somebody else, to introduce
1:07.1	you to every money story because we truly believe financial freedom is attainable for everyone,
1:12.0	no matter when or where you're starting.
1:13.8	Whether you want to retire early and travel the world, go on to make big time investments
1:17.1	and assets like real estate or start your own business, we'll help you reach your financial
1:20.8	goals and get money out of the way so that you can launch yourself towards your dreams.
1:25.1	David, it's so nice to see you again, and I'm super excited to talk to Anthony today.
1:29.4	He has a very interesting story of being not so great with his finances and then hearing
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