No Monthly Cash Flow? When to STOP Investing and Start Saving!

BiggerPockets MoneyFeb 9, 202443m 7s5.7K viewsScore 75
Pricing & Profitability
intermediate
cash flow management
expense reduction
income increase
investment strategy
debt repayment
M

Summary

AI-generated

This episode discusses how to navigate cash flow challenges when unexpected expenses arise, like a new baby, and how to strategically adjust investment contributions to maintain financial goals. Hosts explore options like pausing retirement contributions, increasing income, and prioritizing debt repayment to fortify financial positions.

Key insights

  • Pausing or switching Roth 401k contributions to traditional 401k can free up significant cash flow ($3,000-$4,000/month) to address immediate financial binds, though it means losing a year of tax-advantaged investing.

Mistakes to avoid

  • Continuing to invest heavily in retirement accounts without sufficient cash reserves during periods of high unexpected expenses can lead to running out of cash, forcing difficult decisions like dipping into retirement funds or taking on more debt.

Tools & resources

  • BiggerPockets Money Podcastpodcast

    The BiggerPockets Money podcast offers financial advice and case studies for listeners aiming for financial independence.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial