386: How to Build Wealth While Working for Tips
Look up any “how to retire early” guide online, and you’ll see some basic information: invest in your 401(k), take advantage of your employer match, buy real estate, and invest the rest in index funds. While this type of advice is by no means wrong, it’s geared almost entirely toward W2 workers with consistent income and a full stack of benefits. Those waiting tables, bartending, or doing any other service industry work don’t fall into the “predictable income” category, so they often get left behind when spreading the word about building wealth.
We wanted to fill the informational gap and give service industry workers EVERYTHING they need to know to turn tips into early retirement. The perfect person to teach us all about it? Barbara Sloan! She’s the author of Tipped: The life changing guide to financial freedom for waitresses, bartenders, strippers, and all other service industry professionals. In it, she teaches those working for tips how to turn their inconsistent (and frequently non-taxed) income into a portfoliothat will make them set for life.
Barbara walks through her money story, from getting deep into debt, moving to New York City with just $700, working at bars and Wall Street, and how she turned a fluctuating income into financial independence. She gives actionable advice on how ANY service industry worker can start saving, set up an emergency fund, and build wealth, even if they’re not making a high income. She also explains why tip work like bartending and serving makes the ultimate retirement plan for those that have already hit FI!
In This Episode We Cover
How to reach financial independence even when working for tips or on a low income
Why reporting income for taxes is a MASSIVE benefit when building wealth
Building “buffers” and how to set yourself up for time off (even if you’re not getting paid for it)
Health insurance, retirement accounts, and how service-industry workers can get on par with W2 worker benefits
Building a budget and why tracking your expenses is CRUCIAL on a fluctuating income
The busiest times for tipping work and how to make the MOST money during every off-season
And So Much More!
Links from the Show
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How to Become an “Overnight” Success in 10 Short Years with David Greene
Finance Friday: How to Get to Early Retirement Even Faster
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