Chapters
Shownotes Transcript
Hello, hello, hello, and welcome to the bigger part money podcast. My name is middies jenson, and today I have a very special episode, you my sters. Today we're going to share another episode from the youtube series on the bigger pockets ts money youtube channel that I host, the features stories of people that are either on their way too, or have already achieved fire.
Today we're littering my friend eric Peters in financial journey. Eric was able to reach finance independence and retire early in just a decade after reading mister money must ash as famous fire blog, eric quadrupled his savings overnight and started investing all the money he had into those boring investments most americans don't pay attention to. Don't miss this episode to find out how before we get in the show we wanted.
Think our sponsor, this episode is brought you by connect, invest, realised, investing, simplified and within your reach. Now back to the show, eric. I am so excited to talk to you today.
Super happy to be here.
So eric, how did you discover the concept of financial independence?
That's probably like a deal journey. I was in the investment management side of things, so I made mutual funds and my corporate job, and one I just thrown through to research on something. And I came across an article and I I wanted say with barrons that there's a guy that retired on his twenty nine and his name is mr.
Money must stash and read the article. Wow, this kind just got figured out. And he's a some marge to me. So I went to his blog and just started consuming IT as much as I could. Like, I read IT, I think I read this whole blog.
And like a month two, he just open up my eyes, said, don't have to do the nine five while you don't. Nobody does nine five. You don't have to do that until there are sixty five. Luckily, I was in a position where I was making these some money, and I could start super saving.
And before that, I always know I save, but he just like, well, you can look a little more fruitfully and save a lot more, and then you are age, retirement drops dramatically, given all of that. Okay, my name shall, said Shelly, let's let's go after this and so we can do IT. And SHE is yeah a good idea.
And so here we are. What was your life like before you discovered financial dependence, before you .
started pursuing that? I think the key thing is I was stressed out. The corporate job was working of sea sweet people. And there is just of pressure behind delivery and getting things done and playing all the politics and all those things. I go along with corporate amErica and a lot of stress to me. I mean, my wife would say that impacted my my homework too because if you're constantly I thinking about your job, you're not thinking about the things that are really important like your family and taking care of yourself and all that stuff. I think it's kind of that typical story of living for your job and then you try to squeak and funding they do on the weekend or maybe a shower two at night and just can you know.
I don't think we ever really dive into the stress levels that a job takes on you on the bigger pockets money podcast. But when you said that, I was like, yeah of course your life is usually really stressed yeah there's the unicorn person who works in to they love and you'll never work a in your life when you do what you love and it's still stressful. I mean, there's always something happening at work that you Carry home with you and you know, IT does take at all. And you remember, oh, i've gotta work on that projector or I hope by, you know, make IT into the office time tomorrow so I get that project done so it's on my boss's desk. Or you know whatever IT is and your mind isn't fully or at all in the conversation that you're having with your family yeah that's not all the time, but that can happen a lot and that starts to you wrote your relationship with your kids and your IT can get really, really, really difficult, especially if you're in a job that you hate or really a jebb's making mutual funds and everybody's money is riding on whatever you decide to put inside your fund and you know one bad stock and everybody hates you. I'm assuming is what happens when you make have never yeah you know.
it's kind of funny because I wasn't running money. I was a kind of the research and development guy, and I made this big he that evaluated our own internal stuff. I was known as the Green river.
When I came the meeting, sometimes I had the evaluation on here. This fun is not doing what suppose be doing, and we need dock about killing IT. That was of me, a big drusen.
It's funny, like you're talking about how you don't forget about IT. But I remember I was so proud the day that I earned a blackberry like, all this is so cool and little. I realized, like, oh, tother did my job.
Twenty four seven. yeah. Now they can get in touch with you anytime. When you said blackberry like is like an award, like a little berry, you be the old school.
Yeah, that was, uh.
how old I am. Attention, investors, are you ready to take your portfolio to the next level? Discover bam capital, where expertise meets opportunity. With over fourteen hundred investors in one point three billion dollars in transactions, ban capital is a leader in the industry there. On institutional class a multifamily assets means you're investing in properties with significant upside potential, plus they handle everything on finding the opportunities. Imagine the assets so you can enjoy cash flow positive returns, act now and see why thousands of individuals partner with bam capital, visit bigger pockets, docs, slash bam, they can started that's bigger poke's a comm flash B, A M, discover the smart way to invest in real.
Wondering where the bigger pockets community gets the best rental property insurance start at steadily dot com, steadily landlord insurance protects against property damage, loss of rental income and liability claims with lightning fast quotes, superior coverage and a team that understands real state investors, unique needs they've got you covered could steadily that calm for an instinct quote. Now visit big pocket stock com slashed landlord insurance and protect your renters with steadily insurance, steadily insurance found by landlords, for landlords.
Hey, Henry washington, hear from the on market pod ever get frustrated while hiding for off market properties? While here are not alone, just as alex a fell, a real state investor who was in the same boat struggling to find those hidden games, then they discovered deal machine. Now alex effortlessly locate off market.
James, leveraging deal machines, free, unlimited contact data powered by the robust databases used by nine one one call centers and IT automates bal campaign seamlessly. So revolutionize your real estate game. Like alex visit, bigger pocket stock, comes lesh deal machine, sign up for free and start transforming your .
property hunting. So what was the most significant change that you had to make once you discovered concept of I don't have to work until and sixty five?
The most significant was thinking about savings, more like I was back and calculated before I figured out the fire stuff, uh is like seventeen percent year, which is pretty good for your air america. But one side discovered, hey, there's another way basically up we're life style think we dialed into like forty forth grand year for a family four.
And you know, this is in midwest, so was pretty cheap limit, but IT just allowed us to save so much more, so much faster, didn't cut back significantly. I mean, we still fall like we live our lives, but we didn't feel super deprived. Now they were on the flip side, living right or now, which is awesome.
That's part of the whole fire thing. To more to that is just A A beautiful thing. When you have money.
you have options. I love that, quote, when you have money, you have options. What was something you thought was going to be hard to give up, but ultimately was IT .
in terms of the biggest thing to give up in that situation? In a lot of people say this, but it's the relationships at work. I mean, you make some good friends, you make any. And when you are no longer there, you tark too much, much. And there's there still great people.
That is, one of the downsides of fight is losing the the work connections, although you then make different friends, at least I have we live near each other. And you know, I live at long month. It's kind of this method and I have a lot of these retired friends in my circle.
So it's it's a different the transition has been different for me. But yeah, that can be tough. Have you been able to keep anything in your life that you thought you would have to give up? Well.
I just bought a really expensive now, but we're kind of the same. I mean, onest ly, we're so figure or not like penny pinchers and full disclosure, my wife still works part time, so there's income coming in that way and you just dial IT in more. And that's that's one thing to I think that's what a big take away vie is.
When you canna do the sub culture, or you start thinking about IT differently, have to really examine your own values in the sounds cool was like, what do I really care about? But there is a big responsibility there too, and might be true to to myself and might be true to my values that I reflected out. And sometimes when you just work in all the time, you don't have time to think about that. It's a bigger responsibility on I thought would be yes.
it's so easy to get swept up in other things when you can focus on yourself, like when you go for a walk and you have your phone with you, you don't have to be alone with your thoughts. You can, you know, check out, oh, what's on twitter and who's texting me in. Maybe i'll take a phone call.
When you go for a walk by yourself and you're alone with your thoughts, depending on how long that walk is, you can get them into some really deep conversation with yourself. And the same is true when you don't have work distracting you all the time, you're thinking about yourself, what are I truly value having that conversation with? No distractions can be I opening IT can be I opening that you don't know what you truly value.
You, you know, it's not necessarily a bad thing that you don't know. That just means you have a homework assignment. Let's go figure out what I want to be when I don't have to work anymore.
Yeah, yeah. What I want to be when I grow up because you've had all these inputs from your parents and from culture and from school, it's really a truly a point where you like, okay, I can actually think for myself and I can actually figure out what I truly value.
Did you track your spending prior to retirement? Like did you have a good handle on what you we're spending or like an amount or where I was going?
Yeah so I was kind likes thinking back on stuff, preparing for this. I was obsessive. I was to the point where I would check sometimes daily and what my network was.
And it's so money because once we hit fire that all one away. And I remember seeing one time I like I obsess about money, so I don't have to obsess about money. And that's what that was done by working years.
And it's funny because I just looked at my network this morning and the last time I updated IT was in march of two thousand twenty two and in the prior to that was another year. So i'm like, I don't care. I know generally where we're at, but it's it's a beautiful thing.
I should we do that interview of recovering money obsess or yeah.
time awesome.
Can you teach my husband had an so do you still track your spending? No.
we've done a lot of the different things. We've done a spread cheap budget. We've done a cast budget in the past. We've just like generally tracked. And right now we don't you kind like in this area of where you'd know where you're at.
If you go over on a month, you just take some from savings and take care of a cardcast whatever you are going to do a like a big trip, uh, we're going to take the money for X, Y, Z and do IT that way. So we've really cut back on the tracking and all that stuff. And in full disclosure, we're not super wealthy by any lake. We're probably right on the cost of fire between the F, U, money in fire. So we don't have a limited resources, but we still have a outside in.
So let's look at your money where it's part. What are you investing in V, T, S, A, X kits, the jail college step of approval, but where you putting your money?
I was in the business. I know how the sausages and it's kind of insein where everybody gets paid. So i'm a big huge believer in index funds.
I'm a huge believer in asset allocation. And I think that sometimes gets overlooked in terms of nine, two per center returns come from asset allocation. So that that means that little eight percent really matters on I do like individual stacks because I do like the the of hit run.
I'm fine with, you know, the fluctuation, the risk stuff. One little tidbit is, I always say, put your risk in your right. And the reason why that is, if you do hit a home run in your room, the government can. So if you turn here, whatever your roth is, your hundred grand into one point two million.
that's a beautiful place to have IT.
Or your paypal stuck into five billion? Yeah yes, I mean, you always dream.
right? You can always that's the best story ever.
Yeah but it's it's, it's out there. And so why put your .
risk in your rock? I love that. I don't think i've ever heard anybody that. But that's such a great idea because yeah, if you're going to put that kind of rescue there with all the rewards, I mean, your routh is a grows tax free withdraw, paying no taxes because you pay text up front. What is really why is nobody saying .
that going today? And you know like beneficiary things, like it's so well protected and that's the other thing too. Like I grew up through the whole financial services and I read ed slots bug on taxes and like that's only half the games is accumulating your well, the other has and IT may be even more important is for get your tax strategy. That's probably something maybe that's a another discussion is figure out out how should you spend your money once you are retired and how to keep the government's fingers out of IT as much as possible all on the up. And obviously, but there's a lot of pole, there's a lot of things.
They're not loopholes, their tax strategies. And yes, you should absolutely pay every dollar of tax, the U O. And you should absolutely try to pay as few dollars of tax as possible by taking advantage of these tax strategy.
Hundred percent need new glasses or want a fresh new style. Warby Parker has you covered glasses started just ninety five box, including anti reflective, scratch resistant prescription lanes that block one hundred percent of U. V rays, every frames designed in house, with a huge selection of styles for every face shape. And with warby Parkers free home try on program, you can order five pairs to try at home for free. Shipping is free both ways to go to warby Parker dot on flash covered to try five pairs of frames at home for free, warby Parker dot com flash covered.
Managing your family is used to be hard. I was writing down every expense on a piece paper for years. I tried all the apps, but they became so complicated that I almost gave up until I found monarch money.
Monarch is the Operated all in one personal gives you a comprehensive view of all your accounts, investments, transactions and more. Create custom budgets, set goals and collaborate with your partner and now get an extended thirty day free trial when you go to monarch money dot cons lash pockets. Monarch simple, intuitive design makes IT easy to manage your money like a pro at a partner or family member to your account for no extra cost, so combined finances become a breeze. Customized your budgets and notifications, set up automatic rules for transactions, and more. After trying out month for myself, I understand why it's the top rated personal finance and right now, get an extended thirty day free trial when you go to monarch money dot com slash pockets that M O N A R C H M O N E Y dot com slash pockets for your extended thirty day free trial.
Investors is time to rethink your strategy, and bam capital is here to help. Bam capital finds and manages high quality real state investments, offering you a hands off yet profitable investment with a strong track record in over fourteen hundred satisfied investors. Bam capital is a trusted name in real state investing.
Their focus on institutional class a multifamily assets. Your investing in properties with significant upside potential plus vertical integration model minimizes investor risk, providing you with a more secure investment experience. Don't wait, gets started today by heading over the bigger pockets. A M slash bam to learn more bigger pakistan com slash B A M start reading the rewards. The state today .
running at a gas that's a problem that's avoided. Owning a rental property without proper landlords surface a problem that's equally avoidable. Steadily, landlord insurance can help steadily offers fast quotes on property and liability that are Taylor made for the real state investor community, and they can even compare pricing from multiple care for landlords looking to way different options. You can rest easy knowing your investments are secure with steadily they're available online twenty four seven and they can start coverage as fast as the next day via bigger pockets that comes lash landlord insurance to secure your investments steadily insurance, steadily insurance founded by landlords or landor's. Hey.
Henry washed, you hear from the on the market pod ever feel stuck while searching for off market deals? Let me introduce the sera, a savy state investor who turned her fortunes around with the machine. There are now taps into free, unlimited contact data powered by the same databases used by ninety percent of U.
S, color R, D. Systems SHE easily since automated milk campaigns. And thanks to deal machines, new private investigator sir can even track down those elusive corporate leads. This powerhouse, como, keeps her steps ahead of the market. One of invest, like Sarah had the bigger pockets dock, comes lash deal machine and sign up for free, start turning hidden opportunities into your investment success with just a few clicks.
Ic, you said that you're on the cusp of financial independence. I'm assuming that you used the four percent rule to determine your number.
I don't know about the four percent rule. I get that. I understand that I think it's more of the long back up.
I want to have diversification in terms of how my income comes. So as I check these off, then, that just makes me feel Better. So it's not we don't live off of our investments at all.
We live off of my little income doing handy and stuff and my other projects, and then we live off my White income, and those are just sources of income. So in the future, because i'm listening to Better pockets night, we'll have a rental. And in the future, my side businesses, my little side hoods will produce in so it's less about the four percent rule. It's more about what does our lifestyle require in terms of income kind .
of answer in the question. okay. So you have a nice mistake and then you are looking for sources of more has the .
time yeah in fun income fun income, I think .
it's .
not sive. I'm fine of that.
Yes, for all of you out there listening or watching who think that real estate is passive, you're wrong. I'm sorry. All those people who tell you real estate is passive, they are incorrect.
There's an element of passivity, passion, that's what if I don't know that maybe there's a new word. There's an element of possibility with real al estate because technically, you're doing nothing. They give you a check at the beginning of every month, but then things break.
Eric, walk me through your five time line. How old were you when you discovered mister money? Must ash, how long did you take you to become comfortable with the amount of money that you had so you .
could quit your job? And how old were you when you find liquid? Yeah, that's a good one. Or on thirty four, when I found article and a about a decade at forty four, I had a beautiful moment at work and I was called getting, but I was smiling in the whole meeting, and luckily i'd prepared prior to that.
So that kind of sport, me, get into the true fire thing, and maybe I would jug IT out longer. Mayi I? A perfect ming. So my first share, I literally just stick compressed, like I went fishing. I went biking practically day and just took in the beauty of not having that job.
And IT was a lot of, yeah, this is how I thought I would be but then at some point I like I should are doing something. And year two is when I started to kind of a take off and like start helping friends with votile handy. So being held in friends with like home improvement projects, that kind of stuff in the word kind of get out.
I was like, oh, well, kind accidentally started handyman business at some point as they will also apply targes people something for IT have some type of value, you know, exchange. And the other thing I did to was something I really proud of. I think this, like little my little legacy thing, is I started a comic about being a dad.
I ve had so much fun of that. And that's, that's one of those things. That's a labor of love. I've had a lot of connections because of IT, and you can provide me.
So my wife, this for me for father's day couple years ago, or SHE, printed out some of my comics and i've actually started to i've done those like I have an idea of milk out, and i've started to read IT up because these people are coming back. You need to make a book and you need to do this. I was like, didn't think i'd go that far. So another beauty of the entire right, like pursuing something just for the fun of IT. And then this might be one of my, you know, some hypo ve income streams. And then the other thing that I I really got to do a lot was just, this is funny y because as I just got back from a mob trip, mom, biking mob trip, and we were talking about the crazy, big, glossy of a billion dollars, whatever, and the cool stuff, say, stuff as s and that kind of what I do to, like we are talking about bikes, like a built electric bike in next week, going to do a day fast. But to keep my mind, busy options, I think IT is just a beautiful thing to have that time.
Eric, you've mentioned your comic strip dads are, where can we find this comic?
I love hearing comments of my coming ics because a lot of them are really good and someone really funny. It's an instagram at dads underscore R A R E 那那 r and then on facebook is just that are and hopefully someday you see a book published。 I've been talking to some people and there's nothing interests. So again, you just don't know where you can go when you don't have to do that five in your stress out. So one of those cool, cool options.
eric, I love your dads are comic. They don't all relate to me, but many of them due to me, my husband, my dad and I can see those on t shirts heads. I already harass you about this. I can't wait for the book to come out. And since I have your phone number, i'm going to keep asking until IT.
I like IT. It's good, good to have an accountability party.
Eric, I really appreciate your time today. This was so much fun. Is there any place else that people can buy you online besides your dads are comics?
I have a live long, live often website and it's basically just its its merchants. But it's like, do what you do and do IT often. Like here.
Here's so live long. Fish often live long, right? Often live long. Quite often do what you want to do, and do IT often, because that just makes you happy. So that's another little tension that i've been able, able to start up to since I don't have to work all the time.
Live on draw often.
Yeah, yeah. So beautiful. yeah.
Eric, thank you again for your time. It's always likely to talk to you.
I appreciate IT, and this was great, awesome time.
If you like this video, please click the thumbs up. Don't get to subscribe to this channel for more videos with inspiring firestorms. Just like this is mendy Johnson signing up?