Stopping 401k Contributions and Prioritizing Investments

The hosts discuss the importance of making a conscious decision when it comes to stopping contributions to a 401k, emphasizing the need for a clear goal and plan. They highlight the significance of prioritizing investments and provide an example of a listener who temporarily stops contributing due to life circumstances.

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Do you have a cash flow problem? You’re not alone! Dan invests in real estate, has a great W2 job, and maxes out his investment accounts. He wants to hit financial independence by forty, but his lack of cash is making things difficult. Something’s got to give, and Mindy and Scott are here to help!

Welcome back to the BiggerPockets Money podcast! Dan has done an amazing job investing for the future and house hacking throughout his 20s. But now he’s got a MAJOR problem on his hands. Although he and his wife earn around $200,000 per year, they have little to no cash available. With real estate debt, hospital bills, and new baby expenses, Dan is starting to feel the pressure. That extra cash he was able to accumulate only a few years ago? It’s not so easy to find anymore.

In this episode, Mindy and Scott take a deep dive into Dan’s finances to help solve his cash flow problem. Should he follow his real estate dream and pause his retirement account contributions or pivot to a job that will increase his income by another $50,000 per year? Stay tuned to find out!

In This Episode We Cover

Savvy ways to increase your cash flow without taking on more debt

Dan’s house hacking strategy that covers a HUGE chunk of his mortgage

Using a home equity line of credit (HELOC) to buy real estate

How to ask for a raise (and when to pivot to a higher-paying job)

Investing in real estate versus building up your retirement accounts

How Dan plans to reach $10,000/month in “passive” income by the age of forty

And So Much More!

Links from the Show

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Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums

Finance Review Guest Onboarding