The thing I liked most about the book was that he broke the journey to financial independence down into three distinct stages, each with their own focus. At one point, Scott Storch's net worth was estimated at $100 million. Scott Trench: Yeah, I think thats exactly right. Currently, real wages are still at relative highs, and asset prices are finally moving back towards what seem to be more sustainable valuations. I know a lot of people that would be happy with a raise of that level. I think that, sadly, those at the highest risk are middle-class American homeowners. The next $75,000, youre looking at housing and income generation. Scott Trench attended Vanderbilt University after high school, where he earned a Bachelor of Arts in Economics and History in 2013. Yeah, no, absolutely. Start tracking your net worth with Personal Capital using our link. . The corners that you can cut when you are single are way more than if you have other people you are caring for. And the first phase was getting that first $25,000. This is whyI was already fairly frugalThis is why Im saving. Scott Trench: Yeah, and I think a dollar saved is better than a dollar earned because of that tax advantage. But its funny because I hear these people, theyre like, Oh, Im very well into FI. I started my investing adventure as a pimple-faced 22 year old when I bought my first house/investment with $22k and that has laid the foundation of my FIRE journey in my 40s. And it currently rents for $1400. I couldnt agree more. We go into just incredible personal stories. And youre kind enough to send it to me. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. Education:He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. So, my question was, Has she rapped yet? because she is actually a really good rapper. Its unlikely. Ive been recording this podcast since 2012 and at the end of every interview, I always ask, Whats one piece of advice youd give to someone pursuing financial independence?. Its putting money in your pocket every month. They both live in Denver, Colorado. marion dupont scott net worth Tatko na pesmaricu. I bought a house in Edinburgh and Ill definitely be able to do house hack in the short feature with the prices in this city. Suppose that youre making $50,000 a year, if you save $500 a monthwhich is actually a pretty good savings rate. Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth. Lease Purchase, Lease Options, Tax Liens, Notes, Paper, and Cash Flow Discussions, Private Lending & Conventional Mortgage Advice, Real Estate Guru, Book & Course Reviews & Discussions. - What else would be considered an asset in his model? Mad Fientist: Very cool. And he wrote How to Hack Your Housing and Get Paid to Live For Free. He is 31 years old. Cheers! I think that the best type of real estate investments to make in 2022 are the same as theyve always been: plain, vanilla, long-term rentals comprising single-family rentals and small multifamily rental properties like duplexes, triplexes and quadplexes. And that is where I became interested in real estate and started listening to Bigger Pockets and becoming a fan of the company there. Scott Trench: Yeah, sure. I think I take all of the thunder for the weird or funny, whatever you want to call it, activities there by telling very lame, bad jokes on each episode, or asking the guests at least. Trench has focused his career on. Hes doing some amazing stuff, which Im really excited to talk to you about. And groceries are one of the things that a person thats interested in personal finance can go out and make a change in immediately. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). Scott breaks down the journey to financial independence into three stages and explains what you need to focus on at each step (and why)! So, you really have to start somewhere. Are there any links in particular youd recommend? Thats great. When I started on the road to financial dependence, thankfully, I was already in stage three. But thats awesome. Thats great. So, I think that from a big picture standpoint, I was able to think about it in a pretty rational way and have the odds in my favor for success. If so I was hoping to get some advice on a few questions I have in regards to it: - When he talks about real assets what all applies in this model? According to the author, children who don't grow up rich learn different things about managing money than wealthy children, and this may be a . So, Bigger Pockets obviously has tons of amazing resources for people who want to get into stuff like this. I think its going to take me a good bit of time here. I just finished up @Scott Trench book Set For Life. But I think a lot goes into putting yourself into position to be lucky. These offers do not represent all available deposit, investment, loan or credit products. So, I think thats where our friendship kind of kicked off, a pretty similar mindset on life and finance and real estate in general. And I also have a quadplex now that I bought as a regular investment property. Kin Shriner is best known for his role as Scott Baldwin on ABC's General Hospital and its spin-off, Port Charles. So, house hacking as I define it is buying a piece of investment real estate that will make sense as a rental property, as a cash flowing rental property for you after you move out; or otherwise, using your housing to build wealth. And yeah, back in my poker-watching days, I remember Annie Duke very well. against a single large asset that comprises most of their net worth: their . Invest in real estate and never run out of money! And yeah, your last name is Trench, and you want how many trenchlings? Scott Trench CEO of BiggerPockets.com, Author of Set for Life, Co-Host of The BiggerPockets Money Podcast Denver, Colorado, United States 5K followers 500+ connections Join to follow. And both Mindy and I are a little bit morehow do I describe it? She said hes a 20-something whos doing incredible things with real estate and investing and finances in general, so I needed to talk to him. Scott Trench: Yeah. Thanks for the podcast! But within three months of starting my career, my introduction to the real world, I became very interested again in the concept of personal finance. Body Measurements Thats awesome. And no one can go in and audit them and figure that out. 2. So, the goal of this show is to say, Hey, real estate is one part of a strong portfolio. And I believe it makes sense for many people. Mad Fientist: Yeah, absolutely. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. But you get to this $25,000 or this one year of runway, and now you have a lot more options. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. You made the right choice. So one of the problems that a lot of people have I think when it comes to finance is theyre unable to take any risk whatsoever. And theyve got a hundred million dollars in cash and no debts. Ive never been to Colorado, and I love mountains. Scott is the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. I really appreciate it. And Ill see you next time. So, I always end all my interviews with one piece of advice youd give to somebody whos starting on the path of FI. I would have been FI in my 30s. And. Search by Name, Phone, Address, or Email He is the founder and CEO of BiggerPockets.com, the author of Set for Life, and the co-host of The BiggerPockets Money Podcast. Mad Fientist: Absolutely! And once I heard that, everything clicked for me, and I was like, This is it. There needs to be more FI conversation for those with children. Its hard to see how unemployment can increase right now in a meaningful sense when the minimum wage is this low. But if it can cashflow as a piece of investment real estate, then you can always decide to continue living there or keep it as a cashflowing rental. So the best place to find me is actually on Bigger Pockets. I am a massive fan of multiple streams of income, so have been pursuing side hustles for a while now. Mad Fientist: Yeah, this is a long time coming. What Is A 529 Plan and Where to Open One in Your State, How Much Should You Have In A 529 Plan By Age, How To Use A 529 Plan For Private Elementary And High School. $2,650 at NET-A-PORTER. So thats how I managed to lose money investing in stocks I guess. And theres nothing wrong with this plan of index fund investing. I bought my last property in June 2017. If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. . Now to strategize on which to sell and when to acquire my forever home. Go find a career or an opportunity that you believe offers you the potential to scale, but will not allow you to lose money on a monthly basis. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. And in a good market, thats not so important. If you message me there, I usually get back to everybody within a day or two. And I wanted to do a little bit more than maybe invest in index funds again which is kind of a standard 8% to 10% long-term average return. The first $25,000 was focused on frugality and cutting expenses. And so, if you cant sell, then your only option as a homeowner or a house hacker that hasnt bought a property that would make sense as a rental is to continue living on the property and paying it. Great episode Brandon and Scott!. He serves as a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Enjoyed the podcast. And thats a Corolla. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Being a parent changes the game. Listen to the Podcast Here Watch the Podcast Here Help Us Out! And so what Im trying to do with Set for Life and with some of the other things Im doing is try to help people put themselves into a position where theyre saving enough, where leaving a career track like that where they have very limited upside becomes the bigger risk than taking a chance on something that they believe to be a good opportunity. Probably worth a listen. Scott Trench: Yeah, Im 27. Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR These are a proven way to build wealth, are likely to see long-term strength. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. Who Is Scott Trench Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. It just didnt work out. I mean when you talk about average American household spending, 33% of that, the biggest chunk of the pie is going to be in housing, 17% is in transportation, 13% is in food. Survey: Even With Higher Expenses, Most Student Loan Borrowers Are Ready To Resume Payments, Learn the three phases of financial freedom, Discover the secrets to creating an efficient lifestyle, Create your strategy to replace your wages with passive income streams. When (if ever) do you think the real estate bubble we are in will burst? And shes a poker player. Kin Shriner is an actor from the United States. I know its a really hot real estate market these days. He was episode #23. I have a very sizable chunk of my money in index funds for that exact reason. This is great, I have a friend in Denver doing similar, sadly in UK, increases/changes in Buy-to-let (BTL) taxes, are making this approach nonviable. Mad Fientist: He seems like a good boss anyway. Ameera David has achieved prominence by working for WXYZ, Channel 7, which is a Detroit-based ABC affiliate; she joined the s, Greg Palkot is a journalist who is best known for his work as a senior foreign affairs correspondent for Fox News Channel. You can change your choices at any time by visiting your privacy controls. BiggerPockets.com is the worlds largest online real estate investor network. He has some family things that are going on. This is a conventional mortgage brokernot a friend, not a family member. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and Scott Trenchinvestor, entrepreneur, and CEO of BiggerPockets.comdemonstrates how to . Mad Fientist: And I really think you make your own luck too to an extent as well. You may not be able to change your lease, you may not be able to start biking to work tomorrow. Im easily a 2% or 3% safe withdrawal rate, which is much more conservative than the 4% safe withdrawal rate, which means they have much more assets than they need to produce the level of income that they desire. Why Frugal Living Will Only Get You So Far. But Ill be sure to send you that link, so listeners can go ahead and click on that in the show notes. She now has a net worth of $5 million, and her annual salary is estimated at $1 million. They both live in Denver, Colorado. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. Mad Fientist: There was! And thats hopefully when you make all your mistakes and learn all those lessons. Click here to listen on iTunes. So, some people are starting from a position where they already have a good $25,000 saved up through whatever fortune, whatever theyve done previous to this point. Poker players, at least the ones that are really good, have this really good outlook on things where theyre like, Hey, heres the hand Ive been dealt. Melissa hence worked as a reporter for the Great Neck Record and later on began her television career working for CNN Financial News and Bloomberg. Mad Fientist: Wow! Shes good. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Scott was born in September 1990, in the United States. Scott's estimated net worth is $1.5 million. So that would be cool to read that. He married his beautiful wife with whom he resides in Denver, Colorado. Unemployment is likely to remain low simply due to the fact that the minimum wage is so low, giving the Fed wide room to run in tackling inflation again, what I like to refer to as their first enemy. I cant answer that question. Even starting with zero savings, you can go from a five-figure income to six figures, from an active job to passive income, then finally to the ultimate goal . Information about his parents and/or siblings is not available at the moment. And I do she does a lot of private lending and other various kind of creative ways to invest and maybe get a diversified or different or higher returns than she can with just stocks. Well, thank you so much, Scott. And Erin Chase is an expert grocery shopper. And your boss was on the show, Josh Durkin. I cant really see a political advantage for him in doing that. So I was still drinking way too much better and trying to have too much fun when you published that. Mad Fientist: Thats very cool! Scott started acquiring more properties as he worked with Josh and later became such a crucial part of the BiggerPockets family, he was promoted to president. Scott Trench: Oh, Ive love it! Trench is the author of the 2017 book Set for Life. So theyre not even recognizable by name, the companies? But if your house hacking correctly, you have three options. Scott Trench: Yeah, that was my first property. Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. But really, what were after here is a strong personal financial position with a good savings rate, a strong income, strong investment returns, and then the opportunity, if desired, to go take advantage of entrepreneurial pursuits. And I have a couple of other expenses there as well. Thats really important for investors, because the Feds dual mandate is to keep both inflation and unemployment low. I believe I currently was able to getI remodeled and got one of the units up to $925. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. The more money these institutions raise, the more soaring property values they can scoop up, and the more carried interest the deal sponsors make. His net worth is estimated to be $1.5 million. Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. Funded by the U.S. Department of Agriculture and administered at the state level, SNAP benefits 11 Companies That Will Help You Pay Off Student Loan Debt. And my book is written for a very specific audience. This is in an expensive marketwere not able to accumulate anything. Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. Scott Trench was born in the United States in September 1990. Mad Fientist: Mindy has been like, Youve got to get him on the podcast. He is also a real estate investor, an executive at a large online. So, it sounds like you havent made any sort of mistakes or youve been on such a very amazing path seemingly as soon as you got your career? You can click on the 'unsubscribe' link in the email at anytime. So the only criteria that I have that I think that you should really kind of strictly enforce is: Will this property make sense right now?, the day you buy it as an investment property if you dont live there. So, itll take me a year or two to get to that point because I dont want to kick any tenants out or anything or raise the rent too quickly on them. Scott Trench: So, after the other expenses that went into maintaining the property and fixing some things up myself, I was probably breaking even or maybe paying a little bit out of pocket to live on a monthly basis. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. Mad Fientist do you agree, that in UK its harder to make this work? Scott Trench: But yeah, that interest in personal finance is kind of what spurred my ability to save and the accumulation of my first $20,000 to $25,000 for me. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. More from the same. Mad Fientist: How is that going in Denver? Yeah, thats a great way to look at it. So yeah, you better keep saving a little bit because 7 to 10 trenchlings, Im sure, arent going to be too cheap. Thats MadFientist.com/advice. Mad Fientist: Yeah, you mentioned in the book, youre like, Turn your biggest expense into an income-producing asset, and I think thats really powerful to think of it that way. I think that the two things that come into play there are going to be entrepreneurship, asset creation, and then investing. Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? So theyre investing from a position of financial weakness and using some form of creative finance which is kind of, for a new investor, often a code word for extremely risky leverage and not investing from a position of financial strength. Set For Life: Dominate Life, Money, and The American Dream. So, you had mentioned when you hit that $25,000 stability level, you would mention you could get a job that pays less salary but has a bigger bonus potential, or you could go and work at a startup or things like that. So, people always think that thats where they need to focus on their finances in order to achieve a high savings rate and rapidly accelerate toward financial dependence, but thats wrong. And I think that goes right along with what I just said before, its about increasing your odds of success, but understanding that some things are out of your control alongside that. Of course, that logic works both ways; and, if interest rates come back down quickly, these types of investments might perform even better. The author, Scott Trench, has some very wise . Mad Fientist: Yeah, yeah. The mortgage is currently $1400 because I refinanced. And I knew very clearly that around the 18-month mark, give or take a few months depending on my performance, I was going to get a promotion to financial analyst 2. You could try starting a blog or a podcast. Side hustles are still a new thing in my part of the world (New Zealand/Australia) but growing in momentum. Earning an $8000 raise after a year is great. In addition to his career, Scott is the author of Set for Life which was published in 2017. But once Ive got that stabilized after a year or two, I think Ill have a very, very nice cash flow on top of what is already a satisfactory cashflow. He serves as the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. They have nothing to fall back on. Turning Your Largest Expense Into An Income Producing Asset, The Financial Impact Of Housing Decisions, An Introduction To Investing For Early Financial Freedom, Habits And Their Impact On Financial Freedom. SNAP gives eligible low-income households extra food-purchasing assistance to supplement food budgets. Scotts wifes identity is unknown to the general public. marion dupont scott net worthNitro Acoustic. If I ever make it out to Scotland, Ill have to come and check it out. Ive listened to probably half of the episodes so far. Trench joined BiggerPockets in 2014 and is the CEO and president. And then, finally, the next phase is getting from $100,000 to financial freedom. This document can be used by anyone in any position no matter how much you have invested or saved up. Whats Set For Life: Dominate Life, Money, And The American Dream All About? Read this book now. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and . The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. This is what I need to be doing and how I need to be moving forward with my life and with my finances. Have you enjoyed it? We, AOL, are part of the Yahoo family of brands. And that is my question. It cost me $1700. Andrew Ross Sorkin - $10 million So, thank you for that. So, not only are you not spending money on that big, major expense, but youre actually earning money from it which obviously is going to get you to that $100,000 a lot quicker than the normal person. I find social media very overwhelming. Mad Fientist: Nice! So, I mentioned your podcast briefly, but I definitely want you to talk about it because your co-host is one of the people that has been on my show probably more than anyone else. But on the other hand, if I wasnt saving, if I had no financial runway, it would be too risky to leave. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. So hes stepped aside. And thanks to Mindy for putting this together. But then we go into house hacking. Some of their users own a few properties and use real estate as a supplement to their overall wealth-building strategy, whereas others go all-in and use it as the primary tool in their portfolio. And theyre just like, I dont know what Im going to do after I retire. The money is not the fear anymore. And you mentioned in the book something called scalable careers, which thats a great phrase that I dont think Ive really heard before. So you have to have some baseline of stability, and then work as hard as you can to acquire excess so that you can then go on to take these chances in life that you believe, to the best of your ability, are great, and then obviously do whatever work you can to increase the odds as much as you can to your favor. But that was not going to get me expediently towards my goal of a several hundred thousand to a million dollar net worth and several thousand dollars a month in passive cashflow. Youre now president of Bigger Pockets which is huge. And I wanted it as soon as possible. Obviously, some chance plays a part. Scott Trench: Oh, wow! But two, youre decreasing the amount of money that you need to produce financial runway. http://traffic.libsyn.com/madfientist/scott-trench-interview.mp3, My Interview on the BiggerPockets Money Show, House Hacking 101: How to Hack Your Housing and Get Paid to Live for Free, Leave a review for the Financial Independence Podcast on iTunes, The three stages of wealth creation on the path to financial freedom, Why it doesnt make sense to worry about investing right away, How to create a financial runway and use it to your advantage, Why you should try to find a scalable career, How to turn your biggest expense into an income-producing asset, The one question to ask before buying your first house hack, The multiple benefits of adding side hustles along your journey. BiggerPockets is a complete resource for anyone looking to succeed in the world of real estate investing. And then, the rents are about $2600 a month. You could drastically change your life for the better. The identity of Scotts wife is not known to the public. Now, once you achieve a high savings rate and accumulate maybe six months to a year or more of this financial runway, options begin to present themselves in your life, things like you can go and take a job that pays you $40,000 instead of $50,000, but offers you a chance at a big bonus at the end of the year, or you can go work for free for an entrepreneur that you really admire and go learn a valuable skill set, or you can just take that $25,000 and invest or house hack the way I did. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. So, thats one plan. Thats not fast enough. And then, they both were co-hosts on my show with me on episode #38. In 2021, he also released his book First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes. But we dont talk about his real estate investing, we talk about his personal financial journey where he started as a waiter and found ways to make way more money than all the other waiters at the restaurant, how he saved all that money, how he was able to house hack, how he was able to parlay into his career as a police officer, how he was able to save and accumulate tremendous amounts of wealth while most of the people, most of his peersand this is in San Francisco. 529 Plans: The Ultimate College Savings Plan, Understanding And Using 529A ABLE Accounts, Using A Roth IRA To Save And Pay For College, Student Loan And Financial Aid Programs By State, The Guide To Military And VA Education Benefits, The Best College Scholarship Search Websites, Pell Grants: What They Are And How To Qualify, How To Use A 529 Plan If Your Child Doesnt Go To College, Best Student Loans And Rates In March 2023, 10 Best Private Student Loans Of March 2023, Best Student Loans To Pay For Graduate School, Best Student Loans To Pay For Medical School, Guide To Income Sharing Agreements (ISAs), Best Student Loan Refinance Companies In March 2023, Best Student Loan Refinancing Bonuses And Promotional Offers Of March 2023, Student Loan Forgiveness Programs (The Complete List), The Full List Of Student Loan Forgiveness Programs By State, How To Start Investing In Your Twenties For 22 29 Year Olds, How To Start Investing In Your 30s For 30 39 Year Olds, The Best Traditional And Roth IRA Accounts, The Best Places To Open A Health Savings Account, The Best Self-Directed IRA Providers Of 2023, 20 Best Side Hustles You Can Start Earning With In 2023, 54 Side Hustle Ideas To Make Money Fast In 2023, 100 Ways To Make Money In College In 2023, 5 Quick Money Making Ideas (That Take Less Than 1 Hour), 10 Interesting Ways You Can Make Money Driving, High-Paying Side Gigs That Earn $1,000 or More Per Month, Paid Surveys: Earn Money For Giving Your Opinion Online, 10 Crazy Ways To Make $10,000 Youve Never Heard Of, 40 Best Passive Income Ideas To Build Wealth In 2023, 3 Ways To Make $50,000 Per Year Without Working With Passive Income, How To Become A Real Estate Investor With Just $500, Residual Income: 7 Super Smart Ways to Build It, How To Become A Real Estate Mogul With Only $10,000, 10 Best High Yield Savings Accounts Of March 2023, 10 Best Money Market Accounts Of March 2023, 10 Best Free Checking Accounts In March 2023, 10 Best Business Checking Accounts In March 2023, Best Credit Unions Nationwide Of March 2023, Best College Student Checking Accounts Of March 2023. Credit Repair Explained: Should You Pay For Help? After high school, Scott enrolled at Vanderbilt University where he earned a Bachelor of Arts in Economics and History in 2013. That's $1 MILLION. Scott Trench: Sure! Its not to save the economy to support the Biden Administration. So, as part of my effort actually to become a better financial analyst at my job, I started listening to and reading all these content on finance and kind of discovered the concept of personal finance at some point. Going back in time to the 1970s and 1980s, weve seen that the Fed is willing to push interest rates as high as they need to go to fight their first enemy inflation and that they are willing to conduct brutal monetary policy that affects jobs to do that. People doubling their income in a corporate type situation, its not heard of.