You’ve heard of middle-class money traps before. Like spending your whole paycheck on rent, not paying yourself first, and the sneaky seduction of obsessive eating out. Today, we’re talking about a far less known type of middle-class trap, the type that keeps your wealth growing but limits the amount of “freedom” you feel in the process. Oftentimes, savers can find themselves in a position with a big cash surplus but hold tight to it to feel “safe” instead of feeling flexible.

Today’s guest, April, falls into this category. She’s done a phenomenal job at building a millionaire life, keeping large cash savings, and diligently investing in retirement accounts. She’s in a favorable position, but it’s not the position she wants to stay in. April wants to feel a true sense of financial flexibility, with the option to leave her job or decrease the amount of time she spends working. But, to do this, she’ll have to confront her limited “cash scarcity” mindset and chase other investing options.

Scott and Mindy guide April on exactly how to do this, walking through various types of investment options that she (and you at home) can use to maximize a lifestyle for freedom, not just wealth. Even a financial powerhouse like Mindy struggles with these same issues, and you might too once you hit millionaire status!

~~~~
Join the BiggerPockets Money Facebook Group:
https://www.facebook.com/groups/bpmoney
~~~~
Past Episodes Mentioned in Today’s Show:
Madison: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-260?utm_source=youtube&utm_medium=description&utm_campaign=none
J Scott: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-219-j-scott?utm_source=youtube&utm_medium=description&utm_campaign=none
Mad Fientist: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-18-accessing-retirement-funds-mad-fientist?utm_source=youtube&utm_medium=description&utm_campaign=none
Ramit Sethi: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-243-ramit-sethi?utm_source=youtube&utm_medium=description&utm_campaign=none
Preston Cooper on Undergrad Degrees: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-251-preston?utm_source=youtube&utm_medium=description&utm_campaign=none
Preston Cooper on Master’s Degrees: https://www.biggerpockets.com/blog/why-40-of-masters-degrees-arent-worth-it-and-which-are-w-preston-cooper?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
How to Achieve “Financial Flexibility” on a $65K/Year Salary:
https://www.biggerpockets.com/blog/biggerpockets-money-podcast-270?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
How to Access Retirement Funds Early:
https://www.madfientist.com/how-to-access-retirement-funds-early/?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Want to Be a Guest on the BiggerPockets Money Show? Apply Here:
Guests: https://www.biggerpockets.com/guest?utm_source=youtube&utm_medium=description&utm_campaign=none
Finance Friday: https://www.biggerpockets.com/financereview?utm_source=youtube&utm_medium=description&utm_campaign=none
~~~~
Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none

Episode 300

Show notes at: https://www.biggerpockets.com/blog/money-300?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
02:03 Income and Expenses
05:43 Assets and Liabilities
07:36 Financial Goals
09:09 Finding Financial Flexibility
17:30 Overinvesting in Retirement Accounts?
21:08 Sell the Primary to Invest in Rentals?
30:39 Heavy Cash Positions & Rollover Roths
40:01 Taking Advantage of HELOCs
42:09 Company Stock Sales
47:06 Paying Off Debt Early
48:57 College Saving vs. Building Wealth
58:01 Reducing a High Cost of Living
01:06:11 Falling Into the “Middle Class Trap”