There needs to be more FI conversation for those with children. Youre now president of Bigger Pockets which is huge. But we dont talk about his real estate investing, we talk about his personal financial journey where he started as a waiter and found ways to make way more money than all the other waiters at the restaurant, how he saved all that money, how he was able to house hack, how he was able to parlay into his career as a police officer, how he was able to save and accumulate tremendous amounts of wealth while most of the people, most of his peersand this is in San Francisco. And theyre profitable. What Scott did was exactly what we did since 2010, except we did it differently (regular 2bd condos, not multi-dwelling places) and location (SF, bay area). . So, the Bigger Pockets Money Show started as kind of a spin-off, an alternative to the Bigger Pockets I guess real estate podcast. Its been a whirlwind since then. So, if thats something youre interested in, head to MadFientist.com/advice. So youre not going to be able to even last one month without your job if youre starting from scratch until eight months have passed and really six weeks timeframe by the end of the year. Those who buy in desirable locations in markets with strong long-term growth prospects and responsible amounts of leverage (or with all cash purchases) are likely to see a very satisfactory return over the long term, relative to other asset classes. David Greene shares the exact systems he used to scale his I was like, Oh, Im a smarter guy than the market. This company in China is a Chinese fruit juice company. The next phase is getting that first $100,000. . You made the right choice. Mad Fientist: He seems like a good boss anyway. Greg Palkot is known for his work on Shepard Smith Reporting, America's Newsr, Who is Kin Shriner? Another approach that I also use is real estate investing. But you get to this $25,000 or this one year of runway, and now you have a lot more options. And Erin Chase is an expert grocery shopper. Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. Scott Trench is CEO of BiggerPockets, co-host of the BiggerPockets Money Podcast, a real estate investor, and a real estate broker.He is also the best-selling author of Set for Life and First-Time Home Buyer, which have sold more than 140,000 copies combined.Through a solid understanding of wealth management, calculated risks, and a lot of hard work, he created financial freedom for himself as . Scott Trench is the CEO and President of BiggerPockets. Its hard to see how unemployment can increase right now in a meaningful sense when the minimum wage is this low. Scott Trench: And I do it while Im on the clock. Personal Finance Forum Real Net Worth (Scott Trench model) Steve Schneider Investor Sherwood Park, Alberta Posted May 24 2017, 09:08 Hi everyone, I just finished up @Scott Trench book Set For Life. Also getting some buy to lets in Glasgow, all with the funds from the limited company I run as a software consultant. So, for example, a house hack the way I look at it through my lens was I bought a duplex for $240,000 here in Denver in about late 2014. I want to say it was probably November or December of 2013 is when I actually listened to your show and got this all kicked off. So, thank you for that. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. The amount of savings I had, less my car loan payment, plus the value of my car. So, my major mistakes are going to be things like I bought a brand new Toyota Corolla in 2014, kind of before I really wrapped my head around the whole personal finance thing. Mad Fientist: Yeah, absolutely. And my salary when I started was $48,000. What Is A 529 Plan and Where to Open One in Your State, How Much Should You Have In A 529 Plan By Age, How To Use A 529 Plan For Private Elementary And High School. So yeah, I really enjoyed it. So, it sounds like you havent made any sort of mistakes or youve been on such a very amazing path seemingly as soon as you got your career? So thats how I managed to lose money investing in stocks I guess. Scott Trench: No, I was just finding these weird financial ratios. Scott Trench: But yeah, that interest in personal finance is kind of what spurred my ability to save and the accumulation of my first $20,000 to $25,000 for me. I put down $12,000. Scott breaks down the journey to financial independence into three stages and explains what you need to focus on at each step (and why)! Shop Pay is an innovative payment solution developed by Shopify. Set For Life: Dominate Life, Money, and The American Dream. And then, they both were co-hosts on my show with me on episode #38. Scott Trench is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Thats true for the average and the median American, but not popular to point out. Mad Fientist: And thats why I love these three distinct phases so much. Scott Trench: Yeah, Im 27. What are the best types of real estate investments to make in 2022? And I think for that median income earner starting with zero, its with that savings position. Is Scott Trench Married Yes. Cheers! At The College Investor, we want to help you navigate your finances. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. But really, what were after here is a strong personal financial position with a good savings rate, a strong income, strong investment returns, and then the opportunity, if desired, to go take advantage of entrepreneurial pursuits. It will also teach you how to live a happy, healthy, and fulfilling life . When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Some of it is obviously also luck. And any time Mindy gives such a glowing recommendation for someone, I definitely check them out. Its an app that people can use just like a regular wallet to store their card details and information. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. - What else would be considered an asset in his model? On todays episode of the Financial Independence Podcast, Im joined by the president of biggerpockets.com and cohost of the BiggerPockets Money Show, Scott Trench! Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth. And the reason for that is because they have no cushion. Once your account is created, you'll be logged-in to this account. And so, I believe that two things are likely to help people increase their odds of success going rapidly from $25,000 net worth to $100,000. Scott Storch is a record producer, songwriter, and former musician who began his career in 1991. I wanted to try to see if I could do much better than that. So I was able to basicallyfrom a big picture perspective, I think that Ive been able to at least avoid any major mistakes. So, for example, on a basic level, Mr. Money Mustache has an incredible intro because I believeand Mindy agreesthat the basis of personal finance, the foundation, is always in that frugality and having the mindset of the end goal of happiness and using money as a tool to live out that ideal lifestyle I guess. As a fellow beer lover, I highly recommend you get to Colorado for a visit! By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. Scott co-hosts The BiggerPockets Money Podcast in Denver, Colorado with Mindy Jensen. 3. Kin Shriner is best known for his role as Scott Baldwin on ABC's General Hospital and its spin-off, Port Charles. Scott Trench: So the quadplex that I purchased, I bought it for $355,000. And Ill see you next time. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Chart Your Progress to Financial Independence! And so, if you cant sell, then your only option as a homeowner or a house hacker that hasnt bought a property that would make sense as a rental is to continue living on the property and paying it. And then, one-thirdthat was two-thirds I just described there, housing, transportation and foodone third is everything else. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. Theyre unable to take advantage of opportunity. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. So, Im trying to buy one every 12 to 18 months and just sustain that system. Shes good. Mad Fientist: Yeah, thats absolutely crazy! I mean, that obviously worked out for you, Brandon. Being a parent changes the game. Thats MadFientist.com/advice. He has some family things that are going on. So, people always think that thats where they need to focus on their finances in order to achieve a high savings rate and rapidly accelerate toward financial dependence, but thats wrong. But theres also this whole realm of entrepreneurship. Im easily a 2% or 3% safe withdrawal rate, which is much more conservative than the 4% safe withdrawal rate, which means they have much more assets than they need to produce the level of income that they desire. I think that once you have a 50% savings rate on a median income or greater, thats when all of this kind of really starts falling into place and the opportunities begin multiplying in so many different directions for you. He has used many of the strategies outlined in the book to build his own real estate portfolio. Its putting money in your pocket every month. Thanks to both of you and him. Ive been recording this podcast since 2012 and at the end of every interview, I always ask, Whats one piece of advice youd give to someone pursuing financial independence?. Mad Fientist: Absolutely! more attainable than ever. He serves as the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. He married his beautiful wife with whom he resides in Denver, Colorado. But if it can cashflow as a piece of investment real estate, then you can always decide to continue living there or keep it as a cashflowing rental. What do most people not know about real estate investing that you wish they knew? Your email address will not be published. I know its a really hot real estate market these days. So lets dive in! And thats kind of where we start getting into part two there which is $25,000 to $100,000. And then, we kind of move into more niche topics with future guests. Scott Trench: Yes. Earning an $8000 raise after a year is great. Denver, Boulder, Longmont (stop by and say hi to Pete), and Fort Collins are all full of excellent breweries. Mad Fientist: Hey, I hope you enjoyed that interview with Scott. One, youre accumulating that all in savings which is 100% gain because its after tax savings that youre accumulating. It cost me $1700. He uses the example of a quadplex I believe in that post. Scott serves as the Co-Host of The BiggerPockets Money Podcast in Denver, Colorado alongside Mindy Jensen. Search by Name, Phone, Address, or Email So, as part of my effort actually to become a better financial analyst at my job, I started listening to and reading all these content on finance and kind of discovered the concept of personal finance at some point. I think that investors in those types of projects are assuming a tremendous amount of risk interest rates could be far higher in 18 to 24 months than they are today, and that can depress prices, or make it difficult to refinance the property or investment down the line. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? I plan to buy a fourth by, if not by the end of this year, by the end of 2018, by at least kind of spring 2019 to just kind of continue my system. So thats what I did! And this is the real power of it in a non-financial sense. Scott Trench: Sure! So, do you think you stumbled upon it shortly after it was published or was this something that happened a little bit later. And I got a $236,000 loan, something like that after the fees and all that. Its not like I bought an [00:29:20]. Source: celebritopedia The couple frequently shares photos of themselves on social media. And this is something that I really am looking forward to diving into today in the interview because I think its a really powerful way to make the journey to financial independence not as daunting. And theyve got a hundred million dollars in cash and no debts. I couldnt agree more. So, I always end all my interviews with one piece of advice youd give to somebody whos starting on the path of FI. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. By layering philosophy with practical knowledge, Set for Life gives young professionals the fiscal confidence they need to conquer financial goals early in life. The couple frequently shares photos of themselves on social media. So you were my gym companion for a good week or two. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. Mad Fientist: Yeah, this is a long time coming. I managed to lose money because I knew better than the market about this couple of Chinese stocks that had more cash than market cap and I dont know. So, you had mentioned when you hit that $25,000 stability level, you would mention you could get a job that pays less salary but has a bigger bonus potential, or you could go and work at a startup or things like that. So, the final step I think is it goes on forever basically. Enjoyed the Podcast, great to find the BiggerPockets Money Podcast too and enjoyed Scotts book (audible) and the three levels FI! Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and Scott Trench--investor, entrepreneur, and CEO of. So, I think that from a big picture standpoint, I was able to think about it in a pretty rational way and have the odds in my favor for success. Scott Trench. Im not sure how long youve known Mindy Jensen, but I think ever since she got introduced to you, shes been like, Brandon, you have to get him on the show. Thats really important for investors, because the Feds dual mandate is to keep both inflation and unemployment low. And Im looking forward to checking out the rest. This doesnt work so well when I have a family. Scott Trench: Yeah. Scott Trench: Yeah, I think thats huge. I really appreciate it. I appreciate it. Mad Fientist: Alright, good. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). His net worth is estimated to be $1.5 million. Melissa joined CNBC in 2004 where she serves as a reporter and an anchor. Theater of popular music. Listen to the Podcast Here Watch the Podcast Here Help Us Out! These offers do not represent all available deposit, investment, loan or credit products. 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