Financial Independence after 20 Years of Overspending
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- เผยแพร่เมื่อ 3 ส.ค. 2024
- How do you hit financial independence after overspending for two decades? Just ask Saul Tijerina, he’s doing it as we speak!
Growing up in Mexico, Saul Tijerina didn’t fully understand the concept of financing. It wasn’t that he couldn’t conceptualize financing, it was more that he wasn’t around it enough to think of it as an option. In Mexico, everything was sold for cash, whether it was a home, a car, or a new TV. Owning something meant that you really “owned it”, not just “I’m paying this off.”
It’s no surprise that when Saul came to the United States to work, he was in for a financial shock. New car? Finance it. New house? Finance it. Want to eat out every day? Charge it to your credit card and finance it! This was the cycle that Saul was in for close to two decades, before discovering the FI movement.
Now, about two years into his FI journey, Saul has made monumental progress with saving and investing. He’s on track to retire as a millionaire in 2026 and will live off of his taxable accounts until he is old enough to take out funds from his tax-advantaged investments.
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Episode 213
Show notes at: www.biggerpockets.com/moneysh...
00:00 Intro
01:51 Welcome Saul!
04:56 Starting Off in the US
09:08 Credit Card Problems
12:40 Double the Income, Double the Spending
21:28 The Income Evolution
26:18 More Home, More Expenses
31:48 A Financial Turning Point
48:32 The BIG Changes Leading to FI
54:04 The Hierarchy of Tax-Advantaged Accounts
57:46 Saul's Rule of 72
1:00:10 Spending Changes
1:07:38 FI Goals for 2026
1:11:29 Saul's Current Investments
1:16:35 Getting Your Partner FIRE-ed Up
1:20:00 Famous 4
1:26:42 Reviewing Saul's Incredible Journey
I found out I have an uncle called Sam. Hilarious 😂. Very nice story btw!
Great episode. The part about not buying a souvenir magnet because it won't make you money in the future was weird though. Understood, he was just expressing that now he consciously thinks of all his purchases, which is great of course. Just be careful about living 100% in the future. Life is a journey...not to be too cheesy ;-) Play more good music instead of financial/FIRE shows when you're spending time with your wife ;-)
A powerful Mexican. What a gentleman. Enhorabuena desde España. All the best from Spain. 🌍🌎🌏🌍🌎🌏🇲🇽🇲🇽🇲🇽🇲🇽🇲🇽🇲🇽🇲🇽🇲🇽🇲🇽
What an awesome story. Thank you for sharing.
That's great a quote! It's not how much money you make but how you manage it!
This is such an inspiring story. Thank you!
Such a great episode. I related to so many of his mistakes! Coming from another country and having no clue about credit I too lived with credit cards as if someone else was going to pay them off while in college on a scholarship with no way of earning money! I cashed out my 401k, well not cashed it out I simply spent the check when they sent it without rolling over. It has been the last 10 years that I have been going hard on my savings. I did max 401k for the last 20 and funded the Roth a few years, way less than I could. Current me would love to kick pass me in the butt:( But a few real estate hacks live and flip without knowing that was what I was doing and I was able to buy my current home. I did buy a ski place and held it too long but converted it to a rental for 3 years and sold at a loss but was able to get some cash from taxes since it was an investment vs. personal use. COVID introduced me to TH-cam outside of the other silly videos and I went down the financial rabbit hole. My CFP I have had for 6 years tells me I am investing in both pre and post tax almost 55% of my income and after 18 months when my mortgage is paid off that will jump to 75%. I have a 3 year emergency fund which I know is overkill but growing up in poverty colors all of my money decisions and I like having a huge cash cushion. It is in a high yield savings earning 3% a year. Anyway this was so inspiring I am constantly learning and plan on retiring in 9.5 years and moving to a lower cost/better living country, Portugal. Keep up the great work!
Where did you find a 3% High Yield Savings Account?
I had discovered your channel the other day and so grateful for you guys to motivate people including myself especially this guy… so inspiring.. Thank you so much❤️
Love the podcast, writing ✍️ notes.
I didn't realize what l really had. I revised my goals and better moves
Thank you
Great story thanks!
Wow - awesome episode
Great story. Very good information to learn. Thanks.
Such a good episode!
Wow ! what an incredible story , It’s so helpful for many people . I really admired what he’ve done to turn things around , love it !
I enjoyed this episode. Thanks.
This guy is the most honest and incredible story!… God bless him & family! ❤🙏 watching from NY
Excellent episode. Volume was super low though had to crank my volume to 100% to hear you and guest.
This great and honest history. Keep on Greeting from Norway
Need to be careful with QYLD and other cover call etfs and make sure you understand what happens in a downturn. Also understand how the dividend is taxed, it is taxed as income not qualified dividends.
I was thinking the same. Sadly, QYLD is at an all-time low as of December 2022. 11.5% dividend yield is just too good to be sustainable (unfortunately). The essence of the story is that Saul is still on a learning journey, but most importantly, he's changed his behavior from spending to planning and investing. Well done, Saul!
You all do such a wonderful job sharing information. His story is very familiar in this country. For XYLD, QYLD, and RYLD...I also hold these ETFs, however i hold them inside my Roth IRA with 100% dividend reinvestment unitl retirement (about 6 years).
Muy bueno. Gracias!!
Ya lo creo. Un ejemplo.
Ya lo creo. Un ejemplo.
Nice show. I'm wondering if you covered zero percent cap gains. I did not here it discussed but maybe I missed it. I am thinking about converting those traditional 401k dollars and paying no tax into a Roth IRA. I didn't hear this discussed.
Where can I put the money I have in my business saving account that can be liquidated whenever I need it?
What ETF gives 7% dividend?
I wonder how his ETFs are doing now. Are his investments diversified enough to weather a stock market crash/dip?
I'd like to see an episode on FI without the stock market.
Hi Scott. I work for UPS and get a 5% discount on the company stock. My question is... If I sell the stock after 6 months, can I put that money I've made into an index fund without paying taxes? If so, how would I do that? Thanks.
The only way to not pay taxes today is if it's in a 401k or IRA.
What is a ESPP?
Employee Stock Purchase Plan. Purchase your company stock at a discount, often through regular payroll deductions.
What an awesome story. Thank you for sharing.