BiggerPockets Money Podcast: How to Use AI to Reach Financial Independence Faster

Hosts: Mindy Jensen & Scott Trench
Date: January 2, 2026

Episode Overview

This episode explores how artificial intelligence (AI) is changing the landscape of personal finance and the pursuit of Financial Independence, Retire Early (FIRE). Mindy and Scott, both experienced in financial strategy and cautious adopters of tech, discuss their hands-on experiences using AI for smarter investing, productivity, and life optimization. They dive into AI's practical pros and cons, disruption to the job market, investor caution, and actionable ways to integrate AI tools on the journey to FIRE.

Key Discussion Points and Insights

1. The Current Role of AI in Finance and Work

• Opening Thoughts (00:00-01:13)

  • Scott: "AI isn't just changing tech. It's transforming how we work, earn, invest, and reach financial independence and early retirement."
  • Scott and Mindy share that time and experience have deepened their comfort with AI, allowing for a practical discussion on its impact.

• Personal AI Use Cases (01:13-05:02)

  • Mindy admits initial skepticism but grew to value AI for "idea generation" rather than fact-finding.
  • Scott details how AI accelerates software development:
    • "Now that same output is literally, I type in a few sentences into the AI and it spits out...what I'm asking for...in a day I can get a working prototype that would have taken me six months." (02:12)
    • Uses AI to stress-test investment theses, especially in real estate ("obsessed with Denver office lately"), and refine ideas for team discussion.
    • Both stress the importance of fact-checking—AI is powerful, but frequently incorrect.

2. AI as an Amplifier—With Risks

• Potential and Pitfalls (05:02-07:00)

  • Scott: AI is "an amplifier of human capabilities," comparable to the effect social media has depending on how it's used.
    • "If you're using it to write all your papers in high school and never learn how to write, that's going to cripple you for life."
  • Mindy notes the enormous impact on job markets—especially tech: "Technology was the field to be going into, but now it's one of the most affected job markets."

• How AI Affects Workflows and Business Models (07:00-07:57)

  • Scott shares that front-end app development is now "multiple orders of magnitude cheaper" (two to three orders) than a decade ago—recent AI developments made this leap possible in months.

3. Macro Trends, Investment Risks & Societal Impacts

• Infrastructure and Economic Effects (11:13-17:09)

  • Mindy on the "electric suck" of large data centers, and how municipalities and companies like Elon Musk's XAI might respond, e.g., putting data centers in space.
  • Scott elaborates on the "true arms race" in AI infrastructure investments:
    • "Chips are really the major expense here...that has been pushed up to $400 to $423 billion for the estimate for 2025." (13:02)
    • Big risks for investors: These capital expenditures (CapEx) quickly become obsolete.
    • "It’s reminiscent of airlines...total profit of the combined airline industry over the last hundred years is close to zero...I think AI has the potential to be impactful in that same way while also being a pretty big financial risk for people who are investing in it."
    • AI’s voracious need for electricity spikes consumer prices: "Americans around the country are seeing their electricity bills going up 30, 40, 50% over the course of 2025 to 2026."

• Industry Disruption and Labor Market Realities (17:09-20:15)

  • Hard to retrain displaced workers; AI rewards the well-prepared and creates societal challenges for those left behind.
  • Scott: "The only rational play is...become financially independent early in life and make that a priority. It just de-risks all of these situations."

4. Actionable: How to Use AI on Your FIRE Journey

• Analyzing Personal Finances (20:15-24:50)

  • Mindy: "Upload your financial situation to your favorite AI and ask it to analyze...see what it has to say." (20:15)
  • AI is unemotional, offering a different perspective—though outputs still require review by a human or professional.
  • Scott describes using AI to refine fitness routines, financial strategies, and more, always with human double-checking.
    • "If you're using this and you're on the path to financial independence, you're going to find opportunities and...be among, on average, the huge relative winners from AI in society these days."

• Tips for Beginners (22:54-24:50)

  • Mindy: Start with a free AI account. "Go onto an AI and create a free account and start learning how it works."
  • Give more context for better results: "I have gotten in the habit of just kind of brain dumping...and ChatGPT doesn't care that I'm typing a book out."
  • Always check sources and refine your prompting technique.

5. AI Accessibility and the Innovation Race

• Costs and Competition (24:50-27:34)
  • Scott: Even premium AIs are cheap for most users. "Most of these AIs...you don't have to spend that much money on AI to really begin using it."
  • Wonders how profits will materialize for AI companies when tools are so cheap and rapidly leapfrogged by competitors.

6. Notable Use Cases: Budgeting, Education, and Family Life

• Expense Tracking and Planning (29:18-29:57)

  • Mindy: "You upload your budget and you ask it to look for big wins. You ask it to reevaluate your spending and see where your potential holes are."

• AI in Education and Parenting (29:57-33:34)

  • Scott uses Khan Academy and other apps for his 3-year-old:
    • "It knows what her skill level is, it knows what she knows, it knows what she doesn't know... That’s really powerful."
    • Advocates for a balance: short, parent-involved sessions, not letting AI “babysit.”
    • Recognizes the “long tail” of AI’s impact on individualized education and potential inequalities in access.

7. Advice for Listeners

• Final Thoughts (33:34-34:57)

  • Scott (on AI reliance): "You can't get dependent on it...But it's a really powerful tool that I think, if you can adapt smartly, you're going to reap huge advantages."
  • Both invite listener feedback and further discussion on AI’s evolving role.

• Mindy plugs a 31-day finance challenge: Upload the results of the challenge to an AI for personalized ideas.

Notable Quotes & Memorable Moments

• "AI isn’t just changing tech. It’s transforming how we work, earn, invest, and reach financial independence and early retirement."
  — Scott Trench (00:00)

• "Now that same output is literally, I type in a few sentences into the AI and it spits out...what I'm asking for...in a day I can get a working prototype that would have taken me six months."
  — Scott Trench (02:12)

• "If you’re using it to write all your papers in high school and never learn how to write, that’s going to cripple you for life."
  — Scott Trench (05:02)

• "Chips are really the major expense here... that has been pushed up to $400 to $423 billion for the estimate for 2025."
  — Scott Trench (13:02)

• "You upload your budget and you ask it to look for big wins. You ask it to reevaluate your spending and see where your potential holes are."
  — Mindy Jensen (29:23)

• "Go onto an AI and create a free account and start learning how it works. Start learning what kind of inputs you can put in there to get back the kind of suggestions and information that you're looking for."
  — Mindy Jensen (23:35)

Timestamps for Key Segments

• AI’s Impact on FI & FIRE: 00:00-05:02
• Potential Risks & Job Market Shifts: 05:02-07:57
• Big Tech & Investment Risks: 11:13-17:09
• Career Disruption & FI Advice: 17:09-20:15
• Using AI for Personal Finance: 20:15-24:50
• AI Accessibility & Competition: 24:50-27:34
• Budgeting & Life Use Cases: 29:18-29:57
• AI in Education & Family: 29:57-33:34
• Final Remarks & Challenges: 33:34-end

Tone & Style

• Conversational, practical, and occasionally playful (with jokes about "please" and AI overlords)
• Encouraging for newcomers to AI, but realistic about limitations and risks
• Critically minded about both technology and investing hype

Takeaways for Listeners

• AI can massively improve productivity in finance, investing, and many life areas—if used thoughtfully.
• Approach AI skeptically: always review its advice, but don't ignore the competitive advantages it creates.
• Start using free AI tools, practice better prompting, and leverage unemotional analysis for personal finances.
• Be aware of job market disruptions and prepare by pursuing financial independence for maximum flexibility.
• Expect further rapid AI advances, greater competition, and opportunities (or threats) for those able (or unable) to adapt.
• AI can help with budgeting, scenario analysis, and even children’s education, but always under human guidance.
• Listeners are encouraged to share feedback and ideas with the hosts.

[End of summary.]