197: 4 Children, a Lower Income, and STILL Hitting Financial Independence

05/17/21 • 73 min

There are a lot of excuses we hear from people as to why they can’t reach financial independence. They needed that new car, they needed that nicer apartment, they needed the expensive vacations. Often, this is what we hear from people making a high income, unlike today’s guest, non-profit worker Nate Forbes.

Nate knew that he liked working jobs that tended to pay less, and with the support of his wife, he stayed at them. When his wife was ready to be a stay-at-home mom, Nate took a job with more pay but was by no means a high-income position. Even with Nate being the only breadwinner for the family, he and his wife were able to max out their retirement accounts, buy rental properties, and start doing BRRRRs.

Since Nate was raised with strong frugality and not much of a consumer mindset, he’s used to living below his means, but his story of wealth accumulation is truly inspiring. From selling vintage clothing to living in a collective household, to hunting down an early 90s Honda Civic to get 50mpg on long commutes, Nate has done almost everything he can to live a life he loves all while reaching “coast” FI!

In This Episode We Cover

The importance of early financial education for young children
Living below your means and striving to invest every year you can
Keeping the job you love and finding ways to make more money on the side
Maxing out your Roth and other retirement accounts
BRRRR investing and doing live-in flips
Realizing that life isn’t about math, and leverage may not be necessary for success
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow197

Learn more about your ad choices. Visit megaphone.fm/adchoices

In This Episode We Cover

The importance of early financial education for young children
Living below your means and striving to invest every year you can
Keeping the job you love and finding ways to make more money on the side
Maxing out your Roth and other retirement accounts
BRRRR investing and doing live-in flips
Realizing that life isn’t about math, and leverage may not be necessary for success
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow197

Learn more about your ad choices. Visit megaphone.fm/adchoices

Previous Episode

196: Finance Friday: Debt-Free, Great Pensions, But Will it Be Enough?

Getting out of debt can be very empowering, which is exactly how Azar and Jeffrey felt when they paid off $83,000 of debt in under 3 years! They thought it may be the best time to start investing in real estate, but with a surprise baby on the way, they need to be sure they’re prioritizing stability over growth. Since they’re in such a great position, they should be able to do both!

Azar works as a school nurse bringing in a respectable salary, while Jeffrey gets disability payments. Both have pensions and retirement accounts, but they want something more than just those retirement options. For them, real estate seems like the next step. They’ve taken out a HELOC (home equity line of credit) in order to buy their next property, but need advice on whether or not it’s a smart move to stockpile cash for the new baby or go ahead with the real estate purchase.

In This Episode We Cover

Getting yourself out of high consumer debt
Refinancing so you can take advantage of far lower interest rates
How much should you have in an emergency fund for a family of five?
The potential benefits of paying off your primary residence before buying rentals
Why HELOCs should be used for short term debt only
And So Much More!

Links from the Show

Check the full show notes here: https://www.biggerpockets.com/moneyshow196

Learn more about your ad choices. Visit megaphone.fm/adchoices

Next Episode

198: Finance Friday: Are You Spending Too Much Time on Low-Pay Jobs?

Many of you know that Mindy loves live-in-flips, and although she can definitely swing a hammer, she doesn’t have the skills of a finish carpenter, but today’s guests, Serafina & Darrin, do! Serafina and Darrin were both working at non-profits, but over the last year have transitioned to running their own business named Carlucci Woodworking. Serafina takes care of the bookkeeping while Darrin takes care of the carpentry. They’re a dynamic duo!

All this is happening while they are trying to build their dream home out in the country. If you’ve ever custom-built a house you’ll know how time-intensive and (often) expensive it can be. Serafina & Darrin want to know whether or not Darrin’s high hourly rate would be better served doing jobs, as opposed to working on their own home.

With dreams of sailing around the world with their children, hitting a not too far away FI number, and living in their countryside getaway, they’ll need to focus on optimizing their business, getting connections, and keeping up with their investing!

In This Episode We Cover

The pros and cons of leaving your job for self-employment
How to optimize your business so you’re working billable hours whenever possible
Roth IRAs, traditional IRAs, and pensions
Setting up your emergency reserve so you always feel financially secure
Using your business in creative ways (to make more money!)
Knowing the ARV of a new construction (even if it’s custom)
And So Much More!