338: Finance Friday: How to Become Debt-Free 20 Years Faster Than You Thought

BiggerPockets Money Podcast

BiggerPockets

Education, Investing, Business

4.5 • 3K Ratings

🗓️ 23 September 2022

⏱️ 61 minutes

🔗️ Recording | iTunes | RSS

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Summary

Student loan debt—the gift that keeps on giving with interest, stress, and the overwhelming feeling that you won’t be able to pay them off. The larger the loan, the heavier the weight on your shoulders, but in today’s episode, we go over how to start lightening your load. Focusing solely on your debt makes it seem like there's no way out, but financial freedom is always achievable. Today’s guests, James and Bianca, have $278,000 of student debt between them. This debt has followed them for a while, and their original payoff plan would last for another twenty-four years. Despite their debt, James and Bianca have a strong financial portfolio with ten cash-flowing rental units. They make over $17,000 a month with only $7,300 in expenses. Even with a strong financial foundation, these student loans have loomed over them and kept them from true financial freedom. Scott and Mindy introduce James and Bianca to ways they could pay off their debt in the next few years and completely shift their mindset on defeating six-figure debt. Instead of having a burden on their backs for another twenty-four years, they could get their time back and be debt-free sooner. After listening to this episode, there’s a good chance you could too! In This Episode We Cover Living on less than half of your income and how to maximize your unused funds Income-based repayment plans and determining the best loan payoff plan for you Reallocating your portfolio and finding creative ways to pay off your debt Time management and how to know when you should outsource or delegate tasks Preparing for a career shift and how to create a solid financial foundation Getting into a debt-free mindset and finding financial independence even faster And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Mindy's Twitter Scott's Instagram 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 BiggerPockets FIRE Planning Worksheet Student Loans Update: Repayment, Refinancing, and Potential Forgiveness w/ Robert Farrington Finance Friday: Using Student Loan Forgiveness to Catapult FI w/ Sammie Paying Off Student Loan Debt with a Median Income and Two Kids in Northern California with Kyle Renke Click here to check the full show notes: https://www.biggerpockets.com/blog/money-338 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 Pipe Cash, show number 338, Finance Friday edition,
0:05.7	where we interview James and Bianca and talk about large student loan debts,
0:11.0	early retirement, and real estate investing, like always.
0:16.4	One thing is, I'm fearful of creating just a new job for us, right?
0:20.3	Right now we're doing all the maintenance, we're doing all the property management, everything.
0:24.0	It's all us, and so it feels like time is tight already, and so I always have this fear of growing
0:31.1	and figuring out systems to make sure that we're not just creating a new job at top of our jobs we
0:36.0	already have. Hello, hello, hello, my name is Mindy Jensen, and with me as always is my thoughtful
0:41.6	co-host, Scott Judge. I think you're being great to be here. Scott and I are here to make financial
0:46.0	independence less scary, less just for somebody else, to introduce you to every money story,
0:51.7	because we truly believe financial freedom is attainable for everyone, no matter when or where you're
0:58.2	starting. That's right, whether you want to retire early and travel the world, go on to make big time
1:02.0	investments and assets like real estate, start your own business, or pay off hundreds of thousands
1:05.8	of dollars in student loan debt, we'll help you reach your financial goals and get money out of
1:09.2	the way so you can launch yourself towards those dreams. Okay, Scott, this is actually one of my
1:14.8	favorite episodes ever, and it didn't start off that way. We have a guest, we have two guests,
1:20.5	actually, who have quite a bit of student loan debt, and when I was first reviewing their numbers,
1:25.6	I thought, this is a really big problem. As we started talking to them, I realized that they have
1:32.3	an income-based repayment plan, but they make a lot of money. And at first, I was like, hmm,
1:41.6	this is interesting. And then we started talking to them and the whole situation kind of
1:47.4	changes. The way that we were going to go, the direction we were going to go in actually gets
1:52.8	changed quite a bit. So this is it, I can hear people saying, oh, I don't want to listen to income-based
	...

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