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Notes for BiggerPockets Money Podcast 122
Audio time: 55 min
Read time: 1 min<\/h6>\n\n\n\n

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Basics of Financial Independence (FI)<\/h4>\n\n\n\n

Spend less than you earn<\/h5>\n\n\n\n

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• Track your spending (ex. Mint)<\/li>\n\n\n\n
• By tracking his spending, Scott was able to identify his biggest spending categories (housing, transportation, food)\n
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  • House hacked to get rid of housing expense<\/li>\n\n\n\n
  • Reduced car travel<\/li>\n\n\n\n
  • Can splurge on food because above two categories are minimized<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n\n\n\n\n

    Invest aggressively<\/h5>\n\n\n\n

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    • Invest in assets that appreciate and cash flow<\/li>\n\n\n\n
    • Low-cost index funds instead of actively managed mutual funds<\/li>\n\n\n\n
    • Real estate investors can consider themselves retired when they can spend less than their total cash flow. Similarly, for regular investors, when they spend less than their dividends<\/li>\n<\/ul>\n\n\n\n

      Increase your active earned income<\/h5>\n\n\n\n

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      • Hard to increase wages at this time (coronavirus) but it\u2019s still possible to increase your worth\n
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        • Listen to podcasts, read books, learn something new that you can take with you when this period is over<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

          Create assets<\/h5>\n\n\n\n

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          • Real estate in light of coronavirus: market slowdown, less competition, more days on market\n
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            • This would be a good time to familiarize yourself with your market if you haven\u2019t done so already<\/li>\n<\/ul>\n<\/li>\n\n\n\n
            • If you\u2019re thinking about starting a business, owning a business, or anything business related, listen to BiggerPockets Business Podcast 51<\/li>\n<\/ul>\n\n\n\n

              Live the life you truly love<\/h5>\n\n\n\n

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              • What life do you want? How do you want to live?<\/li>\n\n\n\n
              • It will be difficult to write a 5-year plan and execute that perfectly, so start with a plan that generally sounds good and evolve that over time<\/li>\n\n\n\n
              • You can\u2019t do all of the above (steps 1-4) if you don\u2019t know your WHY of FI<\/li>\n\n\n\n
              • The goal of FI is not to quit your job, the goal should be so you can live the life that you truly love<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

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