561: What Happens if High Expenses Extinguish Your FIRE?

BiggerPockets Money Podcast

You did it; you achieved FIRE! After over a decade of hard work, you’ve reached financial independence and can retire early. You’re making more money than you spend from passive income, work-optional, and life is good. But your dreams are starting to change. Maybe you want to spend more on experiences, build your dream house, or move to a higher-cost-of-living area. Now, your expenses are starting to creep up, and your FIRE is about to burn out. What do you do, and is it wrong to return to work?

Caitlin Muldoon has had to ask herself these questions. After grinding for fifteen years, she finally reached her FIRE goal—$10,000 per month in passive income. In her current lifestyle, she’s saving money every month, but as she moves into her dream house and expenses start to rise, her passive income may not be enough. Does this mean that Caitlin is no longer financially independent?

Today, Caitlin is sharing her full FIRE story with us. How she went from one house hack and a HELOC to a six-figure generating real estate portfolio, the struggles she had with leaving her job, realizing that her expenses would jump after her husband quit, and why retiring early isn’t always the end goal.

Support today’s show sponsor, BAM Capital, your path to generational wealth with premier real estate investment opportunities!

In This Episode We Cover

What to do if rising living expenses are about to extinguish your FIRE

Turning your primary residence into a passive income-generating portfolio by using HELOCs

How intentionally saving money can massively propel your wealth and get you to FIRE much sooner

Why you DON’T need to quit your job, even after you reach your FIRE number

Advice for anyone who wants to build a rental property portfolio with today’s high interest rates

And So Much More!

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Do You Know Your FIRE Number? Here’s What That Means

00:00 intro

01:56 Starting Salary and First Home

04:01 Rental Investing and Finding FIRE

07:13 Thoughts of Quitting

08:05 Real Estate Portfolio Timeline

13:58 Savings Rate and Reinvesting

15:47 Using HELOC to Buy Rentals

20:31 Achieving FIRE, But...

24:07 Rising Lifestyle Expenses?

31:55 Advice for FIRE

36:32 Connect with Caitlin!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-561

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