324: Finance Friday: Why Even Millionaires Still Have to Budget

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.5 • 3K Ratings

🗓️ 5 August 2022

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

What is a millionaire? By definition, someone who has a million dollars or more in net worth. But what do you think of when we say “millionaire”? Are you picturing sports cars, expensive vacations, big houses? The reality is that most millionaires are people just like you and me, living in regular homes, still attending their jobs, and trying their hardest to budget. Being a millionaire doesn’t mean you’ve “made it,” but it does mean you’re on the fast track to building wealth. Gracie is a millionaire, but she doesn’t feel like it. When she discovered financial freedom, she set an impressive goal to hit millionaire status by the time she and her husband hit their mid-30s. They worked hard, were diligent savers, and ended up hitting that goal right on time, but it came with a lot less flexibility than they had hoped. While Gracie was able to quit her job, her husband wasn’t able to, and even as he brings in a great salary, the family still is close to breaking even every month on their budget. But Gracie isn’t doing anything wrong. She’s got a tame budget, regularly reviews her spending, and knows that something has to change if she wants to reach the life of financial freedom she had been promised. So what should she do, change her assets, completely revamp her budget, or move to a lower cost of living area to increase her monthly cash flow? Scott and Mindy give Gracie some good advice that will most likely apply to you, even if you’re not a millionaire yet. In This Episode We Cover Coast FI and using it as an alternative to traditional financial independence Budgeting, expense tracking, and knowing where your monthly income is going Pivoting to part-time when trying to slowly leave a job you don’t love Increasing your “financial flexibility” without sacrificing a ton of time Budgeting red flags and where most families fail in saving money Whether or not being heavy in retirement funds is a wise move in early retirement And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Scott's Instagram 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 Coast FI: The Calculated Way to Retire Early WITHOUT Giving Up What You Love w/Jessica from The Fioneers Check Out Mindy’s 2022 Live Spending Tracker and Budget 3 Degrees, Debt Free, and “Coasting” to Financial Independence Finance Friday: How to Get to Early Retirement Even Faster Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Check out our sponsor page! 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 324, Finance Friday edition,
0:05.1	where we interview Gracie and talk about saving money and building wealth even when it doesn't
0:10.1	seem like there's any easy options. One of my thoughts was maybe someone just needs to tell me to
0:17.0	get over myself and figure this out instead of just spending and then wondering what happened.
0:22.4	So I'm good at that, I've done that for 10 years, you know, I did the payoff and then we did FI.
0:27.9	So I'm a little bit throwing a little tantrum inside because I didn't want to get to this point
0:33.9	and have to continue cutting the budget that much but if we can do a three-year model where
0:40.8	I see flexibility opening up in the three years, we could do it I think.
0:46.8	Hello, hello, hello, my name is Mindy Jensen and with me as always is my carefully considering
0:51.8	all Ingalls co-host Scott Trent. And with me as always is my thoughtful co-host Mindy, great to be here.
0:57.3	Scott and I are here to make financial independence less scary, less just for somebody else to introduce
1:02.7	you to every money story because we truly believe financial freedom is attainable for everyone,
1:06.8	no matter when or where you're starting. That's right whether you want to retire early and travel
1:10.3	the world, coast FI, go on to make big-time investments in assets like real estate or start your own
1:16.3	business, we'll help you reach your financial goals and get money out of the way so you can launch
1:19.7	yourself towards your dreams. Scott, today we're talking to Gracie who has a great financial
1:27.2	position if she wanted to do coast FI as you mentioned, which we talked about on Monday's episode
1:34.4	with Jess from The Fianneers and it's kind of funny how sometimes he shows just work out back-to-back
1:40.2	like that. And she also has like she's she set herself up in a great position but I think she wants
1:47.6	a little bit more so there are other options she can pursue. Yeah, I think I think that there are
1:52.6	definitely options but there are no easy options and there's a lot of you know there's a lot of
1:59.0	we want a lot of things we want to be able to have plenty of time and we want to be able to have a
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