Manage episode 353701918 series 3361306
What does financially independent mean? Find out in this special, deep-dive podcast episode.
James defines financially independent:
- Passive Income from things like social security, pensions and annuities
- Net positive cash flow from rental properties
- Safe withdrawal rate times other invested assets like stocks and bonds
James discusses how you need to have clarity on what financial independence looks like for you... especially as a real estate investor... and then what you need to do to get there.
What you NEED to be financially independent is your ultimate destination. That's what your budget looks like when financially independent.
What you choose to invest in is the path to financial independence. That's your action plan.
James provides you with The Ultimate FIRE Budget so you can plan your budget now, when you're at lean FIRE and when you're at fat FIRE... and specifically what your sources of income are for being financially independent at each of those three stages.
James also discusses Warren Buffett's two list strategy as described by James Clear and how that applies to real estate investors seeking financial independence.
Bonus conversation about whether you should pay off your primary residence or not and how that has far reaching implications on other financial questions.
Watch the video version of this class:
Resources Mentioned In Class
- The Ultimate FIRE Budget - Determine what your budget and investments look like now, when you're lean FIRE and when you've achieved fat FIRE with this free video and spreadsheet download.
- San Diego, California Real Estate Modeling - Click on the link to copy any Scenario for San Diego, California to have James walk you through any calculation including Cash on Cash Return on Investment for any property used in the modeling.
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the San Diego real estate investor podcast? Book a free consultation to discuss.