How to Save Your First $25,000 -- The Roadmap Most People Get Wrong (SB1838)

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May 6, 2026

Scott Trench, VP of Operations at BiggerPockets and author of Set for Life, shares practical real-estate-forward tactics and a contrarian savings roadmap. He focuses on high-leverage budget fixes like housing, commuting, and food. Short, bold moves like house hacking and saving the next $1,000 matter more than tiny cuts. Covers asset allocation, tax-aware saving, and when to prioritize fun after fixing big costs.

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INSIGHT

Housing Commuting And Food Drive Your Budget

Most of your budget comes from housing, commuting, and food, not lattes or movies.
Scott Trench says those three categories are about two thirds of spending, so targeting them yields far larger savings than cutting small treats.

ADVICE

Make Getting To Your First $25,000 Your Primary Goal

Aim to save your first $25,000 because it creates runway and unlocks big options like house hacking.
Trench picked $25,000 as roughly one year of living at $2,000/month for a frugal millennial and as the down payment trigger for starting real estate moves.

ADVICE

Hold A Small Cash Buffer Then Invest In Index Funds

Keep a small emergency reserve then invest the rest in index funds rather than letting cash sit.
Trench kept about $2k–$5k as a buffer and put money above that into broad index funds despite short-term volatility.

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Getting to your first $25,000 saved is harder than anything that comes after it. Not because the math is complicated -- because the habits aren't built yet, the fixed expenses are already set, and the standard advice about cutting small treats completely misses where the real leverage is. Scott Trench, VP of Operations at BiggerPockets and author of Set for Life, brings a roadmap that challenges almost everything you've heard about getting started -- and it begins with a decision most people aren't willing to make.

What You'll Walk Away With

Why the first $25,000 is the hardest milestone -- and why cutting lattes and happy hours won't get you there
The three budget categories that actually matter -- and why they account for two thirds of what most people spend
Why saving your next $1,000 is more valuable than earning your next $1,000 -- and the tax math that proves it
The house hacking strategy that can eliminate your largest monthly expense entirely -- even if you never want to be a full-time landlord
Why stocks are less risky than bonds for long-term investors -- and the age-based argument Scott makes that most people miss
The counterintuitive case for spending more on fun -- once you've handled the big fixed expenses first
Why developing a specialty may actually be riskier than being adaptable -- and what that means for your career strategy
The retirement account trap that catches early savers off guard -- and when maxing out isn't the right first move
How to actually vet a financial advisor before handing over your money -- and why the problem is often as much the client as the advisor
Why international stocks belong in your portfolio even when they've underperformed -- and the rebalancing math that changes the picture

Why This Matters Now

This conversation was originally recorded years ago, but it was pulled from the vault for a reason: saving that first $25,000 feels harder today than it did then. Costs are higher, decisions feel riskier, and it's easier than ever to feel stuck before you even get started. The core framework Scott lays out hasn't changed -- and if anything, it applies more directly now than when it was first recorded.

From the Basement

Scott Trench joins Joe and OG to walk through the early chapters of Set for Life -- the ones that challenge conventional saving wisdom before getting into the real estate strategy BiggerPockets is known for. The headline segment takes on a Bloomberg piece about bad financial advisors and a lawsuit against American Funds, and OG gets considerably more animated than usual about both. Doug arrives with muni bond trivia that turns out to be exactly as straightforward as it sounds -- which is either reassuring or anticlimactic depending on your expectations.

Resources Mentioned

Set for Life by Scott Trench -- biggerpockets.com/setforlife
The Truth About Money by Ric Edelman -- referenced by Joe as a foundational personal finance read
FINRA BrokerCheck -- finra.org/brokercheck; referenced for vetting financial advisors
Stacking Benjamins Scorecard -- stackingbenjamins.com/scorecard
Stacking Benjamins Vault -- stackingbenjamins.com/vault
Stacking Benjamins Community -- stackingbenjamins.com/basement

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