341: Money with Katie’s Middle-Class Myths and The Great Roth vs. 401K Debate
BiggerPockets Money Podcast
BiggerPockets
4.6 • 2.9K Ratings
🗓️ 3 October 2022
⏱️ 61 minutes
🧾️ Download transcript
Summary
Katie Gatti Tassin from Money with Katie had her “financial awakening” earlier than most. She saw the middle-class wealth trap of working, spending, and repeating for what it really was. This cash-gobbling cycle is one that many Americans fall into, but once you see the light, it’s hard not to almost automatically do better. And that’s what Katie did, trading twenty-dollar daily lunches and “hot girl expenses” for more saving, investing, and skyrocketing net worth.
Through a few short years of self-education, Katie was able to more than double her income, build profitable side businesses, and have a master-like grip on her finances. She’s become an expert in retirement investing, passive income, and saving simply through reading blog posts, listening to podcasts, and starting something of her own. This, coming from someone who just a few years ago had less than $500 to their name.
Katie walks through what spurred her “financial awakening” and how sharing the same thought process could activate your own. She also touches on financial myths that the middle class commonly falls into, the great Roth vs. 401(k)debate, and why lifestyle creep isn’t such a bad thing. She’s proof that you can turn your entire financial situation around in only a few short years, and if she could do it, why can’t you?
In This Episode We Cover
The “financial awakening” that’ll have you saving more and spending less
Financial “truths” that could destroy your wealth if you follow them
Self-education and the best personal finance podcasts and blogs and you should tune into
Retirement investing and whether it makes sense to invest pre-tax or post-tax
Starting side hustles and job hopping to more than double your salary
The bright side of lifestyle creep and using it as a reward for your hard work
And So Much More!
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Transcript
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| 0:00.0 | Welcome to the Bigger Pockets Money Podcast, where we interview Katie Getty Tossan from the |
| 0:06.3 | Money With Katie Podcast and talk about financial awakening, questioning conventional money wisdom, |
| 0:12.5 | and also have a good old fashioned pre-tax versus rock debate. In either case, like |
| 0:18.8 | having all tax deferred or all tax-free, like both are pigeonholing you into the, you know, in one |
| 0:25.5 | case it's pigeonholing you into now having to figure that out now, whereas like if you went all |
| 0:29.9 | Roth, but like wouldn't have needed to, or then you're being pigeonholed into like you've kind |
| 0:35.1 | of overpaid probably on your tax at the time, if you were contributing to a Roth while you were paying |
| 0:40.1 | a 37% marginal tax rate, like that is that's cutting out a third of that contribution. So yeah, |
| 0:48.1 | I would say like having all of either is probably not going to give you the most flexible outcome. |
| 0:53.0 | Hello, hello, hello, my name is Mindy Jensen and with me as always is my money loving co-host |
| 0:58.3 | Scott Trech. And great to be here with my 401 okay co-host Mindy Jensen. |
| 1:03.6 | Scott and I are here to make financial independence less scary, less just for somebody else. |
| 1:09.6 | To introduce you to every money story because we truly believe financial freedom is attainable for |
| 1:15.2 | everyone, no matter when or where you're starting. That's right, with you and retire early |
| 1:19.3 | and travel the world going to make big time investments and assets like real estate, |
| 1:22.5 | start your own business or just have a financial awakening. We'll help you reach your financial |
| 1:26.8 | goals and get money out of the way so you can launch yourself towards these dreams. |
| 1:29.8 | Scott, today is a super fun episode. We talked to Katie from Money with Katie, the podcast, |
| 1:36.0 | Money with Katie, the blog, Money with Katie, the everything. And this is a super super super fun |
| 1:41.1 | episode. I really enjoy talking to her. I enjoy our lively debate at the end, Roth versus |
| 1:46.5 | traditional 401ks. I enjoy her story of her financial awakening where she discovered that you don't |
| 1:53.7 | actually have to spend every dime that comes into your pocket. Who did that? |
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