450: The “Middle Class Trap” That’s Keeping You in Debt

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 15 September 2023

⏱️ 60 minutes

🔗️ Recording | iTunes | RSS

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Summary

The fear of Job loss has become real for most Americans. And if you’re falling into the “middle-class trap,” a sudden loss of income could be even more severe. After the recent tech layoffs of 2022 and 2023, businesses outside of the Silicon Valley bubble are starting to feel the effects of higher interest rates and lower consumer spending. But what happens if YOU’RE the one who’s getting laid off? Will you be able to pay the bills? How much of a severance package can you expect? And what moves should you make NOW to get ahead? Mindy and Scott are taking questions directly from listeners to put YOU in the best financial position possible. On this show, you’ll learn what to do AS SOON as you hear about layoffs in your company, how much you could get paid for severance, and why you CAN NOT rely on unemployment for everything. Next, we hear from a high-income earner who can’t get out of debt and is stuck in the “middle-class trap.” For those with too much cash on their hands, Mindy and Scott get into investing in syndications, plus what to do if your house bills are slowly eating you alive. Got a money question you want to ask Mindy and Scott? Head over to the BiggerPockets Money Facebook group, or click here to submit your question on our next Q&A episode! In This Episode We Cover What to do if you get laid off and how to start making income ASAP Severance packages and questions you NEED to ask your employer if you lose your job The “middle class trap” that high-income earners get stuck in Syndication investing 101 and when to RUN away from a potential investment What to do if you’ve "bought too much house” and payments are putting pressure on your finances Unemployment income and why you CAN’T rely on it to pay for your life Why EVERYONE needs a side hustle to survive (yes, even YOU!) And So Much More! Links from the Show BiggerPockets Money Facebook Group BiggerPockets Forums Finance Review Guest Onboarding Join BiggerPockets for FREE Scott's Instagram Mindy on BiggerPockets Grab Scott’s Book, “Set for Life” Listen to All Your Favorite BiggerPockets Podcasts in One Place Apply to Be a Guest on The Money Show Podcast Talent Search! Money Moment Syndications: Everything You Need to Know BEFORE You Invest Want More Syndication Info? Email Scott Check Out Mindy’s ENTIRE 2022 Budget Surviving a Layoff: What HR Wants You to Know Click here to check the full show notes: https://www.biggerpockets.com/blog/money-450 Interested in learning more about today's sponsors or becoming a BiggerPockets partner yourself? Email us: [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome, everyone, to the Bigger Pockets Money Podcast, where we are answering your tough questions today.
0:06.8	We are going to talk about losing a job, being in the cycle of debt, syndications, and house repairs.
0:14.8	Hello, hello, hello! My name is Mindy Jensen, and with me, as always, is my smarty pants co-host, Scott Trent.
0:21.0	Thanks Mindy, it's great to be here with my only wears digital shorts, co-host Mindy Jensen.
0:27.0	I don't even understand that one. Me neither, but I thought it sounded fun.
0:31.0	That's the best!
0:33.0	All right, Scott and I are here to make financial independence less scary, less just for somebody else,
0:41.0	to introduce you to every money story, because we truly believe financial freedom is attainable for everyone,
0:47.0	no matter when or where you are starting.
0:49.0	That's right, whether you want to retire early and travel the world, go on to make big-time investments and assets like real estate,
0:55.0	start your own business, or recover from a financial setback, like many of the folks asking questions today have.
1:01.0	We'll help you reach your financial goals and get money out of the way, so you can launch yourself towards your dreams.
1:06.0	Scott, today's money moment is stop buying fast fashion.
1:11.0	Fast fashion is super trendy, it's quick to come into the design studio and quick to get out the door.
1:18.0	They're using cheap fabrics, they're using things that aren't going to stick around for a long time,
1:23.0	because they don't need to, because you're just going to jump to the next garment.
1:28.0	Instead, think about buying some classic pieces.
1:32.0	It's some more expensive pieces that are built from quality materials that will last you a lot longer.
1:39.0	Your clothing budget will thank you in the long run, because you're buying one sweater and wearing it for multiple seasons.
1:48.0	I've got some sweaters that I've had for decades.
1:51.0	I don't know that they're necessarily super high quality, but they're my favorites.
1:55.0	I've had them for a super long time, and then when you already have them, you're not buying more and more.
	...

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