Every week inside BudgetDog Academy, students bring their most pressing financial questions to a live open Q&A with Brennan Schlagbaum, a licensed CPA, and his team. The topics span every corner of personal finance — from real estate investing to tax strategy to the mechanics of everyday financial tools.
This week’s Q&A covered a wide range of subjects. Below is a practical breakdown of each topic and what you need to know.
Multifamily Real Estate: Is It Worth Exploring?
Multifamily real estate came up as a potential opportunity for one student. The core question is always the same: does this investment make sense given my current financial position?
Before pursuing any real estate deal, evaluate these factors:
1. Cash flow analysis — Does the property generate positive cash flow after expenses, including mortgage, taxes, insurance, maintenance, and vacancy?
2. Financing readiness — Is your personal financial position strong enough to qualify for investment property financing without overextending?
3. Management capacity — Do you have the time, knowledge, or funds to manage the property or hire a manager?
4. Portfolio fit — Does this align with your broader investment strategy, or is it a distraction from higher-priority financial goals?
Multifamily can be a strong wealth-building vehicle. However, it requires honest assessment before commitment.
Investment Fees: Why They Matter More Than You Think
Investment fees compound the same way returns do — just in the wrong direction. A 1% annual fee sounds small. Over 30 years, it can cost tens of thousands of dollars in lost growth.
When reviewing any investment, look at:
– Expense ratio for mutual funds and ETFs
– Advisory fees if working with a financial advisor
– Transaction fees for buying or selling
– Load fees on certain mutual funds — front-end or back-end
Lower fees mean more of your money stays invested and growing. This is one area where small decisions have large long-term consequences.
Credit Card Payoff Strategy: Avalanche vs. Snowball
Two primary credit card payoff strategies exist, and the right one depends on your specific situation.
– Avalanche method: Pay minimums on all cards and direct extra payments to the highest-interest balance first. This approach saves the most money in interest over time.
– Snowball method: Pay minimums on all cards and direct extra payments to the smallest balance first. This approach produces faster visible wins and can be more motivating.
Neither is universally correct. The best strategy is the one you will actually execute and maintain.
Separating Business and Personal Credit
Mixing business and personal finances is one of the most common mistakes among self-employed individuals and small business owners. Keeping them separate is not optional — it is foundational.
Here is why it matters:
– It simplifies tax preparation and reduces the risk of missed deductions
– It protects personal assets in the event of a business liability
– It helps build a business credit profile independent of your personal score
– It makes financial reporting accurate and audit-proof
Open a dedicated business checking account and a business credit card. Use them exclusively for business expenses from day one.
HSA Benefits and Contribution Limits
A Health Savings Account is one of the most tax-efficient tools available in personal finance. Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. That triple tax advantage makes it worth maximizing if you are eligible.
For 2025, contribution limits are:
– Individual coverage: $4,300
– Family coverage: $8,550
– Age 55+ catch-up: Additional $1,000
To contribute to an HSA, you must be enrolled in a High Deductible Health Plan. If you are eligible and not contributing, you are leaving a significant tax benefit on the table.
FSA vs. HSA: What Is the Difference?
Both accounts allow pre-tax dollars for medical expenses, but they work very differently.
| Feature | HSA | FSA |
| Rollover | Yes, unlimited | Limited or none |
| Portability | Yes, yours to keep | Tied to employer |
| Eligibility | Requires HDHP | Most health plans |
| Investment option | Yes | No |
For most people in a high deductible plan, an HSA is the stronger long-term tool. An FSA works well for predictable, near-term medical expenses.
Medical Expense Tax Deductions and Negotiating Medical Bills
Medical expenses can be deducted on your federal tax return, but only the portion that exceeds 7.5% of your adjusted gross income. For most people, this threshold is difficult to reach in a typical year. However, in a high-expense medical year, the deduction can be meaningful.
Additionally, medical bills are often negotiable — more so than most people realize. Strategies include:
1. Request an itemized bill and review it for errors
2. Ask about financial hardship programs
3. Offer a lump-sum payment in exchange for a reduced total
4. Negotiate a payment plan if you cannot pay in full
Hospitals and providers frequently accept less than the billed amount, particularly from uninsured or underinsured patients.
Married Filing Separately: When Does It Make Sense?
Filing separately as a married couple is generally less tax-efficient than filing jointly. However, specific situations make it worth evaluating:
– One spouse has significant income-based student loan repayment concerns
– One spouse has substantial medical expenses that could exceed the 7.5% AGI threshold on a lower separate income
– There are liability concerns with one spouse’s tax situation
This is a nuanced decision that benefits from CPA-level review before committing to a filing status change.
Removing PMI From Your Mortgage
Private mortgage insurance adds to your monthly payment and provides no benefit to you as the borrower. You can request PMI removal once your loan-to-value ratio reaches 80%.
Steps to remove PMI:
1. Track your current loan balance and original home value
2. Once at 80% LTV based on original value, submit a written request to your lender
3. If your home has appreciated significantly, request a new appraisal to document the updated value
4. At 78% LTV, federal law requires automatic cancellation for most conventional loans
Do not wait for the lender to bring this up. Initiate the process yourself.
The One Thing Focus Principle
The One Thing focus principle is simple: identify the single most important financial action you need to take right now, and prioritize it above everything else. Spreading focus across too many goals simultaneously slows progress on all of them. Concentrate resources — time, money, attention — on the highest-priority item until it is complete or stable, then move to the next.
WHOP as a Payment Processor
For students running digital businesses or selling products online, WHOP is a payment and delivery platform worth knowing. It handles transactions, digital product delivery, and community access in one system. As with any payment processor, evaluate transaction fees, payout timing, and platform compatibility with your business model before committing.
Get This Kind of Guidance Every Week
These are the kinds of questions students inside BudgetDog Academy bring to every open Q&A call — and leave with clear, specific, CPA-backed answers and a plan to act on them. Financial clarity is not a one-time event. It is an ongoing practice, and having the right guidance available consistently makes all the difference.