BiggerPockets Money Podcast

Episode: How to Track Your Path to FI in 2026 (Step-by-Step Guide)

Date: December 19, 2025
Hosts: Mindy Jensen and Scott Trench

Overview of Episode

This episode dives deep into building and using a personal financial statement as the foundation for serious progress towards Financial Independence (FI) in 2026. Mindy and Scott demystify the spreadsheet they've created for listeners, walk through its sections, and explain exactly how it can help set, monitor, and achieve ambitious FI goals. The episode is aimed at intermediate to advanced FIRE followers eager to get actionable with their financial tracking—not just dream.

Key Discussion Points & Insights

1. Why a Personal Financial Statement?

• Snapshot vs. Projection: The document provides a real, point-in-time snapshot of your net worth, assets, liabilities, income, and expenses—not a forward-looking projection. (02:18)
• Foundation for FI: Filling this out is the critical first task in the hosts’ 31-Day DIY Personal Finance Challenge. (01:30)
• Accessibility: Their spreadsheet is intentionally free, comprehensive, and doesn’t require an email to download. (00:30, 04:09)
• Typical Use Cases: Ideal for those midway on their FI journey—not total beginners or ultra-complex multi-millionaires, but the average BiggerPockets Money listener. (04:23)

“This is not a projection model...It’s just a snapshot of where you are so you can diagnose.”
— Scott Trench [02:18]

2. How the Spreadsheet Works: Step-by-Step Tour

Getting Started:

• Download from biggerpocketsmoney.com/resources
• Instructions Tab: Overview and setup guidance; initial values representative of an early FI-er
• Privacy: For your eyes only (though great to share with your spouse or financial planner) (02:18, 04:23)

Main Components:

a) Assets and Liabilities

• Separation of Types: Distinction between primary residence, vehicles, personal property, and financial assets like retirement and brokerage accounts (04:23)
• Personal Property: Includes cars, beneficiary accounts, and their associated debts
• Financial Portfolio: Split into liquid (e.g., stocks, bonds) and illiquid assets (rental properties, private equity, etc.)
• Other Cash Flow: Placeholder for pensions, Social Security, etc.—not typical line items, but vital for FI planning (05:00)

“Most personal financial statement templates do not discriminate between different types of net worth…we want to treat our primary residence, our cars, our personal property and beneficiary accounts...differently than our stock, bond, portfolio or rental properties.”
— Scott Trench [04:40]

b) Income and Expenses

• All-Inclusive: Includes regular income (jobs, bonuses), side hustles, rental/investment income
• Savings Rate Clarity: Built-in calculator handles pretax vs post-tax contributions, matches, and taxes to clarify your true savings rate (13:23)
• Budgeting: Simple, not a robust tool, but offers context for annual/monthly spending and tax impact

“What is your savings rate? ...It’s all dollars you save less all dollars you spend...whether they’re pre tax or post tax.”
— Scott Trench [13:23]

c) Optional Schedules for More Complexity

• Debt Tracker: For users with multiple debts—logs balance, rate, payment, and age (15:16)
• Real Estate Tab: Records property details, cash flow, “annoyance factor,” and future prospects (16:46)
• Other Assets: For pensions, Social Security, private investments; includes liquidity and confidence scores (23:01)

3. Memorable Tips & Best Practices

• Edit the Sheet Carefully: Delete non-applicable pre-filled numbers (e.g., if you don’t own crypto, set its cell to zero). (11:44)
• Future Versions for Personas: Planned templates for different financial scenarios (e.g., “Broke at 50, Retired at 60”). (12:00)
• Real Estate Emotional Factors: Rate properties not just by numbers, but also pain points and optimism—“annoyance factor” and prospects help clarify when to sell or hold. (16:46-17:21, 20:58)
• Liquidity and Confidence: Understand which assets are easily accessible and how much faith you should put in them, especially for retirement planning. (23:01)
• Know Your Numbers: Most Americans can’t declare their net worth or break it down by category. Make sure you can! (25:50)

“I think it’s remarkable that a large percentage of America cannot do this—they cannot tell me what their net worth is, what their asset location is, and what they’re invested in at an up-to-date snapshot.”
— Scott Trench [23:55]

4. When to Use a Spreadsheet vs. Financial Software

• Spreadsheet Pros: Customizable, shareable with planners or spouses, provides deeper context for FI conversations and annual reviews (26:08)
• Software Pros: Real-time net worth tracking, easy day-to-day budgeting, auto-syncing (Monarch Money recommended, with 50% off code: POCKETS)
• Not Mutually Exclusive: Use both—the spreadsheet for periodic deep dives, the app for ongoing monitoring (26:08–27:37)

Notable Quotes

• “This is the foundation for the entire challenge. So it’s really important that you have all of your numbers all in one spot that you can keep coming back to.”
  — Mindy Jensen [01:30]

• “If it doesn’t apply to you, remove the number that is pre-populated.”
  — Mindy Jensen [14:27]

• “This is some good sheet, right?”
  — Scott Trench [17:21]

Timestamps for Key Segments

| Timestamp | Segment | |-----------|---------| | 00:00–02:12 | Introduction, goals for episode, free spreadsheet resource | | 02:12–04:23 | What information goes in a personal financial statement | | 04:23–07:47 | Spreadsheet structure: assets, liabilities, and net worth separation | | 11:42–14:33 | Editing the spreadsheet, future persona-based templates | | 14:33–15:14 | Income & expenses, savings rate clarity | | 15:16–17:21 | Optional schedules: debt tracker, real estate tab | | 20:58–22:57 | In-depth: real estate cash flow, “annoyance factor,” and learnings | | 23:01–26:08 | “Other assets,” liquidity confidence, why most people can’t summarize their net worth | | 26:08–27:37 | Spreadsheets vs. software for financial tracking | | 27:37–28:49 | Wrap-up, community feedback solicitation, spreadsheet updates |

Final Thoughts

Mindy and Scott emphasize the power and clarity gained from building your own personal financial snapshot. The tools discussed—especially their free, customizable spreadsheet—help listeners truly “own their numbers,” setting themselves up for smarter, more actionable FI steps in 2026 and beyond.

Take Action:

• Download the free spreadsheet: biggerpocketsmoney.com/resources
• Consider joining the 31-Day DIY Personal Finance Challenge
• Share feedback, request new tools, or reach out with questions to Scott@BiggerPocketsMoney.com or Mindy@BiggerPocketsMoney.com