BiggerPockets Money Podcast: How to FIRE Without Investing in Real Estate
Release Date: June 24, 2025
Hosts: Mindy Jensen and Scott Trench
Introduction
In this enlightening episode of the BiggerPockets Money Podcast, hosts Mindy Jensen and Scott Trench delve into alternative pathways to achieving Financial Independence and Early Retirement (FIRE) without relying on real estate investments. Aimed at individuals who either find real estate unsuitable or wish to diversify their wealth-building strategies, the episode provides a comprehensive roadmap encompassing spending less, earning more, investing wisely, and creating valuable assets.
The Four Pillars of Building Wealth
Mindy and Scott anchor their discussion around the Four Pillars of Building Wealth, a foundational framework they frequently explore on the show:
- Spending Less
- Earning More
- Investing
- Creating Assets
Scott Trench initiates the conversation by outlining these pillars, emphasizing their fundamental role in wealth accumulation:
“...you can spend less, you can earn more, you can invest, or you can create... those are the building blocks”
— Scott Trench [01:39]
1. Spending Less
Optimizing Expenses:
Mindy Jensen highlights the significance of scrutinizing personal budgets to eliminate non-essential expenses. She provides practical examples such as reducing phone bills and canceling unused gym memberships:
“The first thing that comes to mind for me is your phone plan... I'm not a hundred dollars a month phone bill person...”
— Mindy Jensen [02:14]
Strategic Savings:
Mindy advises starting with small, manageable cuts to avoid feelings of deprivation, recommending services like Mint Mobile for substantial savings on phone plans.
Insurance Requotes:
Another avenue for saving is reevaluating insurance policies. Mindy suggests:
“...call several of the big names, call somebody local and see what they can give you with regards to monthly payments...”
— Mindy Jensen [03:59]
Scott's Analytical Approach:
Scott adopts a more aggressive stance towards expense reduction, categorizing spending into major buckets—housing, transportation, and food—to target the largest expenses first:
“...the biggest ones, no surprise, are going to be housing, transportation and food...”
— Scott Trench [04:26]
He underscores how optimizing these areas can drastically reduce the time required to achieve financial independence:
“If you can ... meaningfully cut back on your housing or transportation costs... it'll shorten the time to retire by decades.”
— Scott Trench [06:14]
2. Earning More
Maximizing Income Potential:
While the episode primarily focuses on spending and investing, the hosts touch upon strategies to increase income. Scott emphasizes leveraging unique skills and circumstances to boost earnings beyond the typical base salary.
3. Investing
Beyond Index Funds:
The discussion shifts to investing strategies outside traditional index fund investments. Mindy shares her experience with private investment loans and private money lending in real estate, illustrating alternative investment avenues:
“...doing private investment loans, private money lending to people who are investing in real estate...”
— Mindy Jensen [12:50]
Scott's Investment Challenges:
Scott acknowledges the challenges of relying solely on index funds for rapid financial independence, suggesting that such an approach may take over five decades to achieve FIRE:
“...if you save 10% of your income... it's going to take you 51 years to retire... save 50%... 17 years to retire.”
— Scott Trench [06:14]
Alternative Investment Opportunities:
He advocates for exploring unique investment opportunities that align with individual skills and passions, such as:
- Joining Startups: Investing time and resources into burgeoning companies with high growth potential.
- Skill-Based Investments: Leveraging personal talents to generate high returns, like training horses or evaluating valuable items for resale.
“...look for something unique to your circumstance that you can generate an immense ROI on...”
— Scott Trench [15:07]
Notable Quote:
Mindy encapsulates the essence of personalized investing strategies:
“...everyone listening... has something, some unfair advantage... look into your skills, look into your circumstances...”
— Mindy Jensen [18:14]
4. Creating Assets
Entrepreneurial Endeavors:
Creating assets, particularly through entrepreneurship, is presented as the most potent method for rapid wealth accumulation. Scott shares his journey with BiggerPockets, highlighting how joining and investing in small businesses can significantly boost income:
“...going into business... is by far the best way to build a large amount of wealth in a hurry.”
— Scott Trench [27:35]
Real-World Examples:
The hosts discuss real-life success stories, such as Tim Delaney's acquisition and optimization of a local liquor store, demonstrating how smart business decisions can lead to substantial financial rewards.
“If nine out of 10 businesses fail... you'll have one successful business. That's basically how we did at BiggerPockets for the last 10 years...”
— Scott Trench [30:34]
Collaboration Opportunities:
Mindy suggests partnering with entrepreneurial friends as a less hands-on approach to creating assets:
“You could be a silent partner in one of these endeavors with a friend who is entrepreneurial...”
— Mindy Jensen [32:13]
Risk and Reward:
Scott cautions about the inherent risks of entrepreneurship but underscores its potential for high rewards, especially for those willing to commit time and effort:
“...there is no alternative. There is no exception to that... you may lose, there's no guarantee... but that is where I would be looking.”
— Scott Trench [27:35]
Conclusions and Final Thoughts
Mindy and Scott reiterate that while real estate remains a popular wealth-building tool, there are viable and potentially lucrative alternatives for those seeking to FIRE without it. The key takeaways include:
- Comprehensive Expense Management: Cutting unnecessary spending is foundational.
- Income Maximization: Leveraging personal skills and unique opportunities can accelerate wealth accumulation.
- Diverse Investment Strategies: Beyond index funds, exploring private lending, stocks, and other investments can offer higher returns.
- Entrepreneurial Ventures: Creating or investing in small businesses stands out as the fastest route to significant wealth.
Mindy emphasizes patience and persistence in the wealth-building journey:
“Wealth creation takes time. It's not going to happen overnight... But it will happen.”
— Mindy Jensen [23:07]
Scott adds a motivational note, encouraging listeners to seek flexible financial positions to seize unforeseen opportunities:
“...you've got to be looking for those opportunities and setting yourself up with that flexible financial position to be able to take advantage of them.”
— Scott Trench [19:38]
Key Takeaways
- Spending Less: Identify and eliminate non-essential expenses to free up resources for savings and investments.
- Earning More: Enhance income through career advancements, side hustles, or leveraging unique skills.
- Investing Wisely: Explore investment options beyond traditional index funds, such as private lending or growth stocks.
- Creating Assets: Consider entrepreneurship or investing in small businesses as a primary strategy for rapid wealth growth.
- Patience and Persistence: Building wealth is a marathon, not a sprint. Consistent effort across all pillars can lead to financial independence.
By exploring these alternative strategies, the BiggerPockets Money Podcast episode offers a valuable blueprint for listeners aspiring to achieve FIRE without the conventional route of real estate investing.