I Make $168,000/year and Spend $5,000/year. What's Next? | Afford Anything Podcast (Audio)

Alex makes $168,000 per year, combined between her full-time job and her side hustle. Her company pays for breakfast, lunch and dinner during the work week, plus a cell phone subsidy, health, dental and vision insurance, a gym membership, and commuting costs. She also househacks, so her living expenses are only $400 per month. What should she do with her ample savings?
Christine is 38 and earns $70,000 per year running her own business. She holds $70,000 in investment accounts, has another $16,000 in savings, bought a condo with 20 percent down, and has no debt. What can she do to fast-track her path to financial independence?
Amy is unsure whether she should pay off her mortgage, downsize to a smaller home, or invest.
Katherine is 23 and househacking into a duplex. How much should she set aside for cash reserves?
Miriam started a podcast and wants to know how to morph a passion into a lucrative income stream.
Nick wonders if the FIRE movement should plan an annual gathering … you know, like a FIRE Festival. (But not like the Fyre Festival.)
I tackle these six questions in today’s episode.
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[@TinaLeder]

The first caller got it packed down.👏👏👏

[@incomefireball-financialin271]

Alex, if you're reading this, and you're considering doing real estate rentals, I'd suggest the paid-in-full real estate in cheaper areas rather than using the money as a down-payment in a more expensive area. When I left Raleigh, NC, I became an accidental landlord of our paid-in-full house (and I had a rent-free situation in the new city), so the paid-in-full house was cash-flowing. I hired a good property management company to find the tenant and manage all repairs. It was pure passive cash flow - almost as easy as owning stocks. The only caution is to pick a place where the property taxes aren't crazy. The taxes on our house in Raleigh were $1000/year and the rent was $1000/month. If the house stood vacant, the taxes wouldn't have been a big deal. My brother owns a similar-size house in a Chicago suburb where the taxes are $6000/year, and the fair market rent would have only been maybe $1500/month, so it takes 4 months of rent to cover taxes - major negative cash flow!

[@leoamari6619]

I know Im kinda off topic but do anybody know of a good website to stream newly released series online?

[@brianbogholtz9485]

Paula, I'm currently listening to this in Rhinebeck NY and started cheering out loud when you mentioned having an event here. Would LOVE to attend when the time comes!

[@njm543]

Thanks for answering Paula I'm Nick! I will look to hit Camp FI and your event in 2020 looking to connect with other FI minded people.

[@Squintillions]

Glad to hear you are looking at San Diego for an event next year! Hope to make it there.

[@danielrhouck]

53:17 "I walk in, it's a room full of people I've never met before, and I sit down at the table and I introduce myself and I say 'I'm a podcaster and I cover the FIRE movement.'" If I didn't know what that was, I'd think you talk about the spread of wildfires.

[@danawood8103]

I would love to attend in rhinebeck N.Y. Keep us posted!!

[@harrychu650]

No one gets rich from owing the bank money.

[@leozilla2374]

I’m in love 😍

[@shereethomson7797]

Thankyou for talking about by the age of x you should of saved.$.......; isnt a one size fits all box. !! Better "later" than never.. In my case! I only learnt about FIRE last year! Wish i had all this information ten+ years ago! Amen for the internet!! Lol

[@djcruiser9816]

I listened to the entire podcast and did not see one advertisement. I would not complain if there was one. I want to recognize and thank Paula for the value she is providing the community.

[@letterstodaughters8049]

Another GREAT podcast! Paula’s comments on focusing on value/creating a community versus the money is AMAZING (i.e. the “why”). Thank you!

[@samgreene7961]

Paying of a mortgage is not just psychological, but also cuts an expense and has a 100% chance of being effective plus eliminates the interest costs. Investing in bond/equity mixes is not certain to beat the house payoff - even in the long term. The market does offer diversification though.

[@TheDreamMaker100]

Paula, thank you for the wonderful service and value that you provide 💗

[@Binhminhtqn]

Wow you are so lucky

[@bwp.bobsworldpodcastpodcas4844]

Love this podcast u teaching me

[@titsonafish]

Alex called in just to brag, zero value.

[@Sexy40baby1]

its nice that her company pays for her meals, I would still manage to buy food.

[@shereethomson7797]

Mz Tweety ive had two jobs where meals and room/bed were supplied!! Working as a cleaner/admin on a mine camp and working on a minesite.

[@Sexy40baby1]

@@shereethomson7797 I was saying that I like to eat so I would still spend money. Truck drivers get per diems (tax deduction) and they can live in the truck. So it is nice