ChooseFI

Wouldn't It Be Cool If ?? | Open the Aperture With Jonathan And Brad | Ep 532 Feb 03, 2025

Introducing The 'Wouldn't It Be Cool If' Series

Episode Summary: 2025 marks the start of an exciting new era for ChooseFI! In this episode, hosts Jonathan and Brad dive into the journey to financial independence—what it means, how to define your FI number, and why taking control of your finances is crucial. Plus, we’re evolving! This year, we’re harnessing the power of community to crowdsource the best personal finance strategies—with your help. Tune in and be part of the movement shaping the future of ChooseFI!

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🎧 ChooseFI Podcast: A New Era Begins! 🚀 📌 Key Topics Discussed:

🟢 Launching the ‘Wouldn’t It Be Cool If’ (WIBCIF) Series (00:00:00)

A fresh approach to exploring financial independence through new ideas and possibilities.

🟢 Personal Journeys in Financial Independence (00:01:00)

Jonathan & Brad reflect on how FI and entrepreneurship have transformed their lives over the past decade.

🟢 Why Options Matter in Financial Independence (00:04:00)

More financial options = more freedom. The importance of actively shaping your financial future.

🟢 How to Calculate Your Financial Independence Number (00:20:28)

The simple FI formula: Annual expenses × 25 = FI number.
How managing expenses can dramatically adjust your FI target.

🟢 Community Engagement & Crowdsourcing FI Strategies (00:40:14)

The power of collective knowledge: How you can contribute to and benefit from the FI community.

💡 Actionable Takeaways:

✅ Find Your FI Number (00:32:24)

Assess your annual expenses and multiply by 25 for a rough FI estimate.

✅ Cut Expenses & Lower Your FI Number (00:17:17)

Every $100 you cut in monthly expenses reduces your FI number by $30,000. Small changes make a big impact!

✅ Reimagine Your Future (00:04:34)

What would your life look like if financial independence was within reach? Start visualizing it now.

🔥 Key Insights & Mindset Shifts:

💡 More Options = Fewer Regrets (00:05:10)

Expanding your choices creates more freedom and opportunities.

💡 FI is for the Middle Class (00:06:57)

A disciplined approach to savings and investing makes financial independence achievable.

💡 The Small Stuff Adds Up (00:17:55)

Tiny tweaks in spending habits can lead to massive long-term gains.

⏳ Episode Timestamps for Quick Navigation:

⏩ 00:00:00 – new series launch ⏩ 00:01:00 – Hosts reflect on their FI journeys ⏩ 00:04:00 – The power of having more options ⏩ 00:16:56 – The importance of actively managing personal finances ⏩ 00:20:28 – How to calculate your FI number ⏩ 00:40:14 – Crowdsourcing FI strategies & community engagement

💬 Discussion Questions: (Perfect for Community Engagement!)

❓ What does financial independence mean to you? (00:05:00) ❓ Do your current expenses align with your long-term goals? (00:32:00) ❓ What’s one small financial change you can make today? (00:17:00)

🔗 👉 Ready to Take Action? Join the conversation & create your account on the ChooseFI Community Platform today!

🎙 Listen now and be part of the movement redefining financial independence. 🚀

2025 State of the Stock Market | Brian Feroldi | Ep 531 Jan 27, 2025

Explore the latest insights on the stock market performance and investment strategies with friend of the show and frequent guest Brian Feroldi. This episode dives deep into the trends that shaped 2024 and what to expect in 2025, discussing everything from the significance of the S&P 500 to long-term investing principles and the impact of emerging technologies on market growth.

Key Topics Discussed:

00:00:44 Review of 2024 Market Performance

S&P 500 Gains: The S&P 500 saw a 25% increase in 2024, following a 26% rise in 2023.
Frequency of High Returns: 20%+ returns are uncommon but have occurred five times in the past decade.

00:03:27 Investor Policy Statement

Investment Horizon: Key question - When do you need your investment to pay off? The stock market is not ideal for investments with a timeline less than five years.
Actionable Takeaway: Assess your investment horizon and risk tolerance before investing in stocks.

00:06:02 The Expectations Game

Managing Expectations: Investing is about understanding potential returns compared to what you expect.

00:06:15 Concentration of Returns

Top 10 Companies: The top 10 stocks in the S&P 500 represent 39% of the index's total value, an all-time high. These include major tech firms referred to as the "magnificent seven."
Investor Caution: Be cautious about concentrating investments solely in these companies as market dynamics can shift.

00:16:22 Valuation Insights

Current Valuations: The forward price-to-earnings ratio for the S&P 500 stands at 21.5, which is above the 30-year average of 17.
Future Returns: Be prepared for lower future returns, with predictions leaning towards low single digits based on historical data under similar valuation scenarios.

00:29:10 Market Concentration Concerns

Current Market Dynamics: While the biggest companies dominate, many are strong businesses leveraging innovative technologies like AI. Investors should stay aware of the risks associated with market concentration.

00:37:03 Reasons for Optimism

Innovation Potential: Despite high valuations, emerging technologies could justify current price levels and drive future growth.

00:39:12 Lifelong Learning

Importance of Education: Continually educate yourself on investing principles and market trends.

Key Insights & Actionable Takeaways:

Focus on Time Horizons: If you need money in less than five years, avoid the stock market.
Sustained High Savings Rate: A high savings rate can greatly enhance your financial security.
Stay Agile: Continually update your investing strategy and be flexible in your approach as market conditions evolve.
Monitor Valuations: Keep an eye on the market's valuation levels and adjust your expectations for future returns accordingly.
Diversification: Consider diversifying beyond large-cap stocks into small caps, international stocks, or real estate for better risk management.

Notable Quotes:

"If the answer is any time period less than five years, I don't think the stock market is the place that you should put that capital." 00:03:27
"Investing is always an expectations game." 00:06:02
"Education is the first step to investment success." 00:39:12

Additional Resources:

Brian's Website: View Here
JP Morgan Asset Management Stock Market Presentation: View Here
Episode Mention: Explore "The Role of Bonds in a Portfolio" Episode 194

Discussion Questions:

What are your personal criteria for investing in the stock market?
How should historical returns influence your current investment strategy?
What are your thoughts on market concentration and its implications for investing?

The FI Case for Electric Vehicles | With Chris Terrell | Ep 530 Jan 20, 2025

Chris Terrell shares his personal journey with electric vehicles (EVs) and discusses the financial implications of owning one. Highlighting key incentives like the Inflation Reduction Act and the benefits of home charging, the conversation delves into the affordability, practicality, and simplicity of EV ownership, providing insights for financial independence enthusiasts contemplating the switch to electric.

Chapters

00:01:08 Introduction Host Brad and guest Chris Terrell discuss the transition from gas vehicles to electric vehicles, emphasizing the financial independence perspective.
00:03:45 Benefits of EVs Chris highlights the increasing affordability of EVs, the practicality of home charging, and the advantages of a growing used car market.
00:22:33 The Impact of Inflation Reduction Act Chris explains the significance of the Inflation Reduction Act and how it provides substantial tax credits for new and used EV purchases.
00:40:21 Cost Comparison: EV vs. Gas In-depth analysis of the total cost of ownership, showcasing the long-term savings on fuel and maintenance.
00:51:31 Charging Options Discussion on the various charging methods for EVs, including level one and level two charging, and their impact on daily use.

Key Takeaways:

EV Affordability: The market for EVs has become more accessible; prices are declining with incentives, making EVs a viable option for many.
Inflation Reduction Act: Offers up to $7,500 in rebates for new EVs and $4,000 for qualifying used EVs, significantly reducing upfront costs.
Home Charging Benefits: Charging at home can lead to savings of approximately $8,000 on fuel costs over time compared to traditional gas vehicles.
Lower Maintenance Costs: EVs generally require less maintenance, resulting in lower expected repairs and upkeep versus gas-powered vehicles.
Used EV Market Growth: With the depreciation of EVs, many used models are available at prices significantly lower than new models, sometimes under $25,000, making them eligible for the $4,000 tax credit.

Actionable Takeaways:

Consider an EV: If you can charge at home, an EV can be a smart choice financially.
Look for Used EVs: Take advantage of the growing used electric vehicle market and potential tax credits to save on purchase price.
Calculate Savings: Before making a decision, calculate potential savings on fuel and maintenance based on your driving habits.

Getting Personal With Personal Finance | Laura And Ginger | Ep 529 Jan 13, 2025

Laura's shares how she transitioned from a high-stress academic career to retirement. Discover the challenges of job identity, financial planning discussions with family, and the mental preparations for life after work.

Laura’s career as an associate professor in genetics involved heavy grant writing and significant stress, particularly as a parent.
The pandemic and her husband's early retirement influenced her decision to consider early retirement.
Conversations about financial independence often spark reflections on personal values and identity.
Preparing for retirement requires confronting not just financial readiness, but emotional adjustments as well.
Resources and tools like 'The Simple Path to Wealth' and 'Quit Like a Millionaire' served as guides in her transition.

Timestamps & Topics Discussed:

Laura is 51, an associate professor in genetics, married, with two sons in college.

00:04:22 The Stress of Academia
- The pressures of running a lab funded by grants; the stress impacts both her work and family life.
00:08:28 Time Flexibility vs. Time Freedom
- Balancing demanding work with family responsibilities and feelings of inadequacy in both roles.
00:10:23 Deciding to Retire Early
- Laura’s husband Eric influences her thoughts about early retirement, compounded by COVID-19 challenges.
00:21:56 Future Uncertainty
- Questions about identity post-retirement and grappling with the loss of career-defined self-worth.
00:26:39 Embracing Uncertainty
- Discussions about accepting risks without guaranteed outcomes.
00:40:08 Financial Considerations and Planning
- Conversations on college savings for children, family financial responsibilities, and their shared journey to determine their FI number.

“Balancing motherhood and a demanding career left me feeling inadequate in both roles.”
“While my job offered time flexibility, it was a constant struggle to balance work with family needs.”
“Contemplating my identity post-retirement raises questions about who I will become next.”
“Embracing uncertainty is part of the journey toward financial independence.”
“Living life abundantly is more fulfilling than accumulating wealth alone.”

The Purpose Code | Jordan Grumet | 528 Jan 06, 2025

In this episode of ChooseFI, co-host Brad sits down with Jordan Grumet, author of The Purpose Code, to discuss the crucial differences between "big P" purpose and "little p" purpose. They explore how identifying small, meaningful activities can bring joy and fulfillment to life. Jordan elaborates on turning regrets and childhood joys into "purpose anchors" and emphasizes actionable strategies to create a life filled with purpose through clarity, agency, and incremental changes.

Key Topics Discussed:

Introduction to Jordan Grumet and The Purpose Code (00:00:00)
- Brad introduces Jordan and discusses the significance of his upcoming book.
Understanding Little P Purpose vs. Big P Purpose (00:01:43)
- Big P purpose is goal-oriented and often feels like a scarcity mindset, whereas little p purpose is about engaging in activities that bring joy without the pressure of specific goals.
- Little p purpose focuses on enjoyment and engagement rather than large achievements; every step counts.
The Role of Meaning in Happiness (00:03:28)
- Discussing how happiness is derived from both meaning (derived from the past) and purpose (driving present actions).
Identifying Purpose Anchors (00:17:02)
- Jordan explains the importance of purpose anchors, small activities that light you up, and provides strategies to identify them.
Practical Strategies for Creating Purpose (00:16:37)
- Steps to create a meaningful life around little p purpose, emphasizing actionable changes.
Creating Your Own Purpose (00:16:37)
- "Purpose is not found; it's created." Focus on engagement in joyous activities.
Life Review and Reflection (00:18:06)
- Use regrets as insights to identify what truly matters to you.
Engagement and Action (00:30:20)
- The importance of scheduling time for activities that bring joy and fulfillment.
Community and Connection (00:38:01)
- Engaging in pursuits that light you up can lead to creating meaningful connections with others.
Identify Your Purpose Anchors (00:17:32)
- Reflect on activities that spark joy or interest and incorporate them into your routine.
Reframe Past Regrets (00:18:30)
- Utilize narrative therapy techniques to change your perspective on past experiences.
Make a Weekly Joy List (00:36:06)
- Create a list of activities that bring you happiness and prioritize them in your life.

Quotes:

"You create your purpose, don't just find it." (00:16:37)
"Little p purpose can create big impacts." (00:36:26)
"To have a good death, live a good life." (00:35:17)
"Choose to be in a good mood; it shapes your life." (00:06:00)

Related Resources:

The Purpose Code: How to Unlock Meaning, Maximize Happiness, and Leave a Lasting Legacy by Jordan Grumet - Link to Book

Buy What You Love Without Going Broke | Frugal Friends | Ep 527 Dec 30, 2024

Join Brad, Jen, and Jill as they navigate the intricate balance between frugality and financial independence. Explore creative alternatives for spending less, and the importance of aligning your finances with your core values.

Key Topics Discussed

Introduction to Frugality (00:00:00)
- Overview of the tension between overspending and frugality.
- Importance of values in financial decisions.
The Extremes of Spending (00:02:00)
- The trend of swinging between extremes in spending and income earning.
- Finding a "radical middle."
30-Day No Spend Challenge (00:08:20)
- Definition and benefits of a no spend challenge.
- Reducing decision fatigue and promoting creativity.
Understanding Dopamine (00:11:00)
- How dopamine affects spending habits.
- The link between dopamine and impulse purchases.
The Four F's of Fulfilling Life (00:35:14)
- Family, friends, faith, and fulfilling work as guiding values.
- Prioritizing financial decisions around these values.
Actionable Takeaways (00:49:30)
- Practical steps to begin applying the concepts discussed in the episode.

Key Takeaways

Embrace Life as an Experiment:
- Life is a series of experiments; learn from each experience and evaluate your spending habits.
Conduct a 90-Day Transaction Inventory (00:25:41):
- Review your last 90 days of spending to identify patterns and impulsive behaviors.
Start a 30-Day No Spend Challenge (00:10:13):
- Focus on understanding your desires and needs without spending money on non-essential items.
Define Your Four F's (00:35:14):
- Identify and prioritize family, friends, faith, and fulfilling work in your financial planning.
Engage in Creative Alternatives to Shopping:
- Find different activities that fulfill emotional needs without spending money.

Quotes

"Hold the tension between frugality and income earning to find your radical middle." (00:05:13)
"It's about wanting different, not less." (00:34:21)
"Life is a series of experiments—learn about yourself with each one." (00:56:06)
"Happiness is an internal journey—not dictated by our environment." (00:48:59)
"Connect your finances to your core values for meaningful spending." (00:37:14)

Action Items

Commit to a 30-day no spend challenge starting next month.
Create a list of your four F's to guide spending decisions.
Conduct a 90-day transaction inventory to understand impulse spending triggers.

Related Resources

Buy What You Love Without Going Broke (00:56:12)
Dopamine Nation by Anne Lemke (00:11:00)
Adam Sandler SNL Skit (00:48:59)

Chapters

00:00:00 - Introduction to Frugality
00:02:00 - The Extremes of Spending
00:08:20 - 30-Day No Spend Challenge
00:11:00 - Understanding Dopamine
00:35:14 - The Four F's of Fulfilling Life

2024 Year-End Celebration: Inspiring Wins from the ChooseFI Community | Ep 526 Dec 23, 2024

Our Favorite episode of the year, listeners share their remarkable financial wins and transformations throughout the year. These stories highlight the power of financial independence (FI) and showcase actionable steps taken by individuals and families on their journeys.

Timestamped Key Topics:

00:00:25 Celebration of Listener Wins
- Jonathan and Brad express excitement about sharing audience achievements over the year.
00:02:44 Defining Financial Independence (FI)
- FI is described as a deliberate journey towards achieving financial freedom.
00:18:16 Justin's Nomadic Journey
- Full-time nomadic living after becoming debt-free and embracing minimalism.
- Key Insight: Prioritizing meaningful experiences over material possessions.
00:23:29 Heather's Second-Generation FI
- Financial planning for their newborn, including establishing a stock account and 529 plan.
- Key Insight: Early financial education can set up children for future success.
00:25:02 Mike's Family Resilience
- Overcoming medical challenges by managing finances effectively, including successful cash flow management.
- Key Insight: Financial resilience allows families to navigate unexpected life events without jeopardizing their stability.
00:31:10 Crystal's Maxed Accounts
- Achieving maximum contributions in retirement accounts and leveraging travel rewards for vacations.
- Key Insight: Small changes in financial habits can dramatically improve long-term wealth accumulation.
00:56:59 Rick and Kelly's Transformation
- Discovering FI later in life and actively working to improve their financial situation.
- Key Insight: It's never too late to take control of your finances and retire earlier than expected.
01:04:36 Jake's Entrepreneurial Leap
- Quitting a job to pursue entrepreneurship, finding clarity on his goals and values through FI principles.
- Key Insight: Understanding what you truly want in life can guide major career choices

Travel Builds Connections and Unlocks Rewards | Ep 525 Dec 16, 2024

Brad shares insights from his life-changing trip to Asia and how it reshaped his perspectives on connection and gratitude. He highlights the importance of direct human interactions and how travel exposes the beauty of our shared humanity. Ginger emphasizes the value of taking risks to build relationships and the significance of continuous learning. Additionally, they discuss the upcoming changes at ChooseFI, including the ability to interact with experts and community engagement through questions. They also touch on upcoming changes with Southwest flights and the importance of utilizing travel rewards effectively.

00:00:55 - Brad’s Trip to Asia
- Discussion of Brad's transformative 23-24 day trip and the importance of taking a “mini retirement.”
00:05:53 - The Importance of Connection
- Key insight: "Connection is the key to a fulfilling life."
- Travel reveals shared humanity and fosters real connections.
00:08:07 - Travel as Personal Growth
- Importance of stepping outside comfort zones and embracing risks for growth.
- Discussion on solo travel and unexpected friendships formed during the trip.
00:20:02 - Community and Financial Independence
- Ginger shares how being part of a community can enhance the financial independence journey.
00:27:12 - Upcoming Changes in ChooseFI
- Introduction of community engagement and expert interaction.
00:31:10 - Southwest Flight Changes
- Changes coming to Southwest, including assigned seating starting in 2026.
00:49:00 - Public Service Announcement
- Reminder to file the beneficial ownership information report by December 31st.
01:07:11 - Listener Feedback
- Discussion of listener input regarding accessing retirement accounts and Sean Mulaney’s follow-up insights.

Keypoints

Embrace risks for greater rewards in connection and life. (00:09:07)
Intentionality shapes success; be deliberate in your actions. (00:24:39)
Stay engaged; automation shouldn't make you complacent. (01:02:47)
Recognize the importance of real human connections in everyday life. (00:05:53)
Use travel to gain new perspectives and enrich your life. (00:08:36)
Implement automation in personal finance to lower stress. (00:58:03)

Related Resources:

Daniel Kahneman's 'Thinking, Fast and Slow' Book Link (00:15:54)
Scott Adams' 'How to Fail at Nearly Everything and Still Win Big' Book Link (00:12:05)

Beyond Numbers at the Bali Retreat | Ep 524 Dec 09, 2024

Join Brad Barrett and a panel of community members as they explore the transformative experiences at the FI Freedom Retreat . This episode dives into the importance of community connection, personal growth, and designing a balanced life centered around financial independence. Highlighted stories emphasize overcoming fears, embracing sabbaticals, and discovering that the journey to financial independence involves much more than numbers.

Key Takeaways:

Importance of Community: Financial independence is not just about numbers; it's about building connections and designing a fulfilling life. 00:05:05
Sabbaticals Lead to Renewal: Taking extended breaks can help reset priorities and foster personal development. 00:17:00
First Impressions Matter: Newcomers often arrive with misconceptions, thinking events only focus on finances instead of personal exploration. 00:12:55
Finding Your Tribe: Engaging with the FI community can redefine how you connect with yourself and others. 00:06:47

Timestamps & Topics:

00:05:00 Community Connection Discussion
- The significance of finding like-minded individuals at FI events.
00:12:00 First Timer Experience with Viji Evers
- Viji shares her initial misconceptions about the FI community.
00:15:33 Sabbaticals and Life Changes with Shawn
- Shawn elaborates on how taking a sabbatical allowed personal rejuvenation.
00:26:45 Business Adjustments for Travel with Christine Wheatley
- Christine discusses the challenges business owners face when trying to step away.
00:39:10 Reflecting on Personal Identity with Susanna
- Susanna shares her journey from being a physician to embracing life beyond work.

Key Quotes:

"Money does not make you happy. It does make life easier." 00:08:31
"Finding your tribe can be life-changing." 00:06:47
"Just do it. Absolutely worth it." 00:15:11
"Community leads to crafting your best life." 00:05:05
"Prepare for the worst; aim for the best outcome." 00:45:54
Consider Negotiating a Sabbatical: If you're feeling burnt out, take time to explore this option. 00:17:19
Reach Out to Local FI Groups: Find a supportive community near you to enrich your FI journey. 00:09:29

Discussion Questions:

What does community mean to you in your journey to FI? 00:06:30
How can taking time off impact your personal and professional life? 00:17:00

Getting Personal with Personal Finance: Katie Donegan & Ginger | Episode 523 Dec 02, 2024

Katie Donegan shares her shift in perspective on the journey towards financial independence (FI), revealing the struggles she faced as a resistant partner and her eventual embrace of the FI lifestyle. She touches on the significance of personal development, overcoming internal blocks, the impact of comparison, and perfectionism on happiness. The conversation explores maintaining balance between work and leisure while finding purpose and practical advice for navigating financial independence.

Key Topics and Timestamps:

00:01:06 Katie's Journey to FI
- Katie reflects on her initial resistance to the FI concept and the pivotal moment of her transformation.
00:03:25 Impact of Mr. Money Mustache
- Discover how Mr. Money Mustache influenced Katie's shift towards embracing a lifestyle focused on FI.
00:06:24 Living with Financial Independence
- Katie shares her financial independence number of one million pounds and the lifestyle changes she made to reach that point.
00:07:54 Balancing Enjoyment and Spend
- Discussing the struggle of spending responsibly while enjoying financial freedom.
00:08:10 Adjusting to Freedom
- Insights into the emotional hurdles of adapting to life with newfound freedom after reaching FI.
00:32:46 Comparison and Its Effects
- Katie addresses the detrimental impact of comparison culture on personal happiness and fulfillment.
00:39:22 The Power of Vulnerability
- The importance of authenticity and vulnerability in fostering connections with others.
00:41:29 Overcoming Perfectionism
- A candid discussion on the challenges of perfectionism and how embracing imperfection leads to a fuller life.

How Kyle and Jamie Got Back to Basics and Found Balance on the Path to FI Nov 25, 2024

Kyle and Jamie Holmson paid off an astounding $123,000 in medical student loans in just three years—all while balancing a waitress’s salary and a resident’s income. Their journey highlights the importance of adopting simple, practical financial strategies while prioritizing essential relationships, health, and enjoyable experiences.

Debt Repayment Journey
- 00:01:45 Paid off $123,000 in medical student loans in just three years!
- Kyle and Jamie’s strategy included living below their means and aggressively paying down debt while still finding joy in life.
Returning to Basics
- 00:02:50 Simplifying life helped us rediscover what truly matters.
- The couple focused on fundamental exercises and whole food diets, emphasizing health and relationships over hyper-optimizing every aspect of their lives.
Prioritizing Relationships
- 00:47:01 Investing in relationships over expenses for a richer life!
- They learned to prioritize spending quality time with friends, enjoying experiences rather than constantly searching for low-cost options alone.
Finding Balance in Financial Independence
- 00:51:06 It's not just about reaching your financial goals; it's about the journey!
- Celebrating small wins in their financial journey helped maintain motivation and a fulfilling lifestyle.
Health and Wellness Focus
- 00:53:27 Simplifying health routines led to better consistency in exercising and overall well-being.
- They embraced simple body-weight exercises and calisthenics to support physical health without the burden of complex workout routines.

Actionable Takeaways:

Simplify your finances by tracking expenses and focusing on what truly matters. 00:02:50
Make financial discussions a regular part of your relationship to foster understanding and shared goals. 00:28:01
Create a manageable workout routine that encourages consistency and enjoyment. 00:55:20

Timestamps & Discussion Points:

00:01:45 Kyle's Debt Repayment Journey: Overview of the couple's story and initial approach to finances.
00:02:50 Back to Basics: Discussion on simplifying life and rediscovering core values.
00:47:01 The Importance of Relationships: How valuing time with friends enhanced their life satisfaction.
00:51:06 Finding Balance in Financial Independence: Insights on balancing financial goals with enjoying life.
00:55:20 Health and Wellness: Transition to a simpler approach to fitness with positive impacts.

Key Quotes:

"Taking action on simple changes can lead to significant life improvements." 01:00:00
"The greatest prize isn't about reaching that goal. It's everything you do and learn along the way." 00:51:06

Discussion Questions:

What steps can you take to simplify your financial life? 00:02:50
How do you prioritize relationships and experiences over material possessions? 00:47:01
What balance can you find between saving and enjoying life? 00:51:06

Related Resources Related Podcast Episodes

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

515 | Cyber Security Update: Social Engineering & Pig Butchering Oct 11, 2024

In this episode: social engineering, pig butchering, cryptocurrency risks, scammer tactics, and avoiding being a victim.

This week Brad speaks with cyber security expert Tom who will be giving some updates on the landscape of cybersecurity, what targeted scams look like, as well as some actionable steps you can take to avoid these scams. Though it may seem that cybersecurity attacks are ever-evolving and may be harder and harder to avoid, there are ways to make yourself less vulnerable to attacks. Making sure you’re having open conversations about this topic with your friends, and especially your older family members is crucial and can make sure you avoid falling for these scams!

🔑 Key Themes Discussed:

The rise of social engineering scams and how they manipulate victims
“Pig Butchering” scams: how scammers build trust, then steal your money
How cryptocurrency is used in scams and the risks involved
Recognizing investment scams and protecting yourself from fraud
The emotional and psychological tactics scammers use to isolate victims
The role of AI and fake profiles in advanced scams
Actionable steps to avoid becoming a victim
The importance of spreading awareness to protect your family and friends
Reporting scams and what to do if you’ve been a victim

🕒 Chapters:

00:00 – Introduction and Overview of Cybersecurity Threats
02:00 – What is Pig Butchering and How it Works
04:00 – Investment Scams and Social Engineering Explained
06:00 – How Scammers Build Relationships and Gain Trust
08:00 – Examples of Scams: Dating Apps, Fake Profiles, and Social Media
12:00 – Cryptocurrency in Scams: What to Watch Out For
16:00 – The Role of AI and Deepfakes in Cyber Scams
18:00 – Personal Stories: Victims Who Lost Everything
22:00 – Action Steps: How to Protect Yourself and Loved Ones
27:00 – How to Report Scams and Recover Funds
29:00 – Recognizing Scams in Everyday Life: Red Flags and Signals
34:00 – Final Thoughts and Preventative Tips

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

514 | The More I Tinker, The Worse it Gets | Jeremy Schneider Oct 07, 2024

In this episode: simplifying your financial life, Jeremy’s journey, dividend versus reinvesting, and automation.

This week we are joined by Jeremy Schneider of Personal Finance Club and co-founder of Nectarine, where we will be discussing the beginnings of his personal investment journey and what that looks like now, striving for simplicity while adding value to your life, as well as discuss the ins and outs of his platform Nectarine. Part of the journey to FI is about finding hacks and ways to make your life a little easier in order to add value, sometimes by keeping it simple. Whether with your finances or in other areas of your life, it is the best option in order for you to thrive!

Jeremy Schneider:

Website: personalfinanceclub.com
Instagram: @personalfinanceclub

🔑 Key Themes Discussed:

The pitfalls of overcomplicating personal finance and investment strategies
The power of simplicity in financial management and investing
Mistakes made in early investing: complex ETFs vs. simple index funds
Jeremy’s journey from selling his company to managing a $2M windfall
The surprising truth about target date funds and why simplicity often wins
The concept of “the more I tinker, the worse it gets” in investment strategies
Personal finance habits that persist from childhood and their impact on adult financial decisions
Dividends vs. reinvesting: pros, cons, and psychological aspects
Understanding the differences between fiduciary financial advisors and those incentivized to sell products
Why financial simplicity and automation can lead to better outcomes

🕒 Chapters:

00:00 – Introduction to Jeremy Schneider
02:00 – Simplicity vs. Complexity in Financial Decisions
03:30 – Jeremy’s $2M Windfall and Early Investing Mistakes
06:00 – Complex ETFs vs. Target Date Funds
08:00 – How Tinkering Can Lead to Worse Financial Outcomes
12:00 – Personal Finance Habits from Childhood
14:00 – Dividend Reinvestment: To Reinvest or Not?
18:00 – Simplifying Financial Life: Automating Investments
22:00 – The Dangers of Chasing Dividends
26:00 – Real-Life Examples of Bad Financial Advice
33:00 – The World of Financial Advisors: Fiduciary vs. Salespeople
39:00 – The Importance of Finding Unbiased, Advice-Only Financial Guidance
46:00 – Jeremy’s Key Takeaways on Simplicity and Financial Independence

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

513 | Make Your Own Dividend | Mailbag with Rachael Sep 30, 2024

In this episode: getting started early with FI, the 4% rule, retirement accounts, real estate, and safe withdrawal rates.

This episode is packed with actionable information that can help with maximizing your financial future, from house hacking to Roth conversions, and strategies for living off your investments. Brad and Rachael dive into real-world listener questions to help you navigate your FI journey with confidence.

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

🔑 Key Themes Discussed:

The benefits of getting started early with financial independence (FI)
Evaluating the 4% rule and how to live off investments in retirement
Understanding the difference between Roth vs. Traditional retirement accounts
Tax strategies for early retirement and avoiding penalties
House hacking as a way to reduce housing costs and boost savings
Real estate as an investment: risks, rewards, and misconceptions
Maximizing income while keeping expenses low for young professionals
Safe withdrawal rates, dividends, and managing investments post-retirement
The psychological aspects of early retirement and maintaining financial health

🕒 Chapters:

00:00 – Introduction to Mailbag with Rachael
01:00 – Starting Early with FI: Gabby’s Journey
03:00 – Roth vs. Traditional Retirement Accounts for Young Investors
06:00 – House Hacking and Real Estate Strategies
09:00 – How the 4% Rule Works for Early Retirement
12:00 – Income Maximization for Young Professionals
18:00 – Managing Dividends and Withdrawal Strategies in FI
24:00 – Safe Withdrawal Rates and Creating Your Own Dividend
31:00 – Listener Questions: Roth IRA Conversion Ladder
36:00 – Tax Strategies and Avoiding Penalties in Early Retirement
43:00 – Rethinking Real Estate and House Hacking Risks
51:00 – Wrap-Up and Final Thoughts on Financial Independence

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

512 | Getting Personal with Personal Finance | Ginger & Anne Sep 27, 2024

In this episode: downsizing, coastFI, redefining your goals, overcoming material attachments, and building community.

This week Ginger is joined by community member Anne, to discuss her process of downsizing and navigating the physical and emotional attachments we associate with objects, places and people. Additionally, the pair discuss the importance of taking mini-retirements, cultivating gratitude, as well as share some podcasts and books that have helped them on their journey. We often say FI allows you the freedom and space to discover what more you want out of life, but that doesn’t mean you should wait until you reach your goal to actually start making the moves to get there! Whether you’re near the finish line or just beginning, don’t wait to explore other possibilities that can elevate not only your FI journey but your life.

🔑 Key Themes Discussed:

The emotional journey of downsizing and letting go of possessions
Achieving CoastFI and the realization of financial independence
The significance of mini-retirements and experimenting with lifestyle choices
Personal growth and redefining goals in mid-life
The psychological effects of decision-making in early retirement
Creating space for joy and gratitude in life transitions
Overcoming attachment to material possessions and past dreams
Building community after major life transitions, such as moving and career changes

🕒 Chapters:

00:00 – Introduction: Ginger and Anne’s Journey
01:00 – Anne’s Recent Move and Downsizing
03:00 – Discovering Financial Independence Through the FI Formula
07:00 – Defining CoastFI and the Big Epiphany Moment
10:00 – Reflecting on Personal Goals and Letting Go of Past Dreams
13:00 – Experimenting with Mini-Retirements: Learning from the FI Community
16:00 – Downsizing: The Emotional Process of Letting Go
22:00 – Influence of Family Illness and Death on the FI Journey
27:00 – The Challenge of Winter Depression and Its Role in Change
31:00 – Selling the Family Home: Closure and Moving Forward
36:00 – Gratitude and the Practice of Being Present
40:00 – Taking the Leap: Early Retirement and What Comes Next
46:00 – Finding Community and Building a New Life After Moving
51:00 – The Courage to Try New Things and Embrace Discomfort
55:00 – Final Reflections on Joy, Curiosity, and Living Without Regret

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

511 | Take the Next Step | Ginger Roundup Sep 23, 2024

In this episode: doing the hard things, travel rewards, the gap and the gain, health and wellness, and real estate.

This week we are back with another listener Mail Bag featuring Ginger. Listen along as we cover a range of topics from recents trips we’ve taken, facing and overcoming challenges, The Gap and the Gain, taxes in retirement and a realistic outlook on how much you’ll be paying, the rule of 72, as well as shout out some of your FI wins! So much to cover and much more to learn in this week’s episode.

🔑 Key Themes Discussed:

Financial Independence (FI) journey and making big life transitions
The importance of experiencing challenging tasks to build resilience (“doing hard things”)
Insights on taxes in retirement: why you may pay less than expected
Travel hacks: optimizing family cruises and travel rewards points
The psychological approach to financial success: The Gap and The Gain concept
Personal health and wellness: Brad’s journey with hiking, saunas, and cold plunges
Community wins: listener success stories on saving, investing, and achieving FI
Health insurance strategies for early retirees
Real estate strategies and long-term capital gains tax advantages
Addressing common FI misconceptions and how to optimize your finances

🕒 Chapters:

00:00 – Introduction and Recent Trips
01:30 – Travel Rewards and Cruise Optimization
06:00 – Family Vacations and Cruise Hacks
08:30 – Colorado Trip and Doing Hard Things
10:00 – Hiking Challenges: Lessons from FI and Fitness
17:00 – Financial Independence Journey: Overcoming Obstacles
21:00 – The Gap and The Gain: Mental Shifts for Success
27:00 – Understanding Taxes in Retirement
35:00 – Health Insurance and Early Retirement Strategies
40:00 – Capital Gains Tax and Real Estate in FI
48:00 – Listener Questions and Real-Life Examples
55:00 – Community Wins: Listener Success Stories
59:00 – Travel Rewards Victory: Booking Free International Trips

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

510 | Real Estate 2024 Update | Scott Trench Sep 16, 2024

In this episode: the lock in effect, renting vs buying, househacking in 2024, interest rate, and real estate investment.

In this episode, Scott Trench of BiggerPockets shares invaluable insights into the 2024 real estate market, breaking down everything from housing supply to interest rates, syndications, and investment strategies. Whether you’re a seasoned investor or just curious about real estate, this episode provides a window into the current state of real estate investing the FI way!

🔑 Key Themes Discussed:

The impact of rising interest rates on real estate markets in 2024
The “lock-in effect” and how low-interest mortgages affect housing supply
Rent vs. buy decisions in today’s market
The rise of multifamily and single-family housing supply, especially in regions like Austin
House hacking in 2024: Is it still viable?
The state of commercial real estate and multifamily investments
How interest rate trends impact real estate investors
Opportunities for investors in a downturn: Finding deals amidst crisis
Syndications: Potential pitfalls, bad actors, and lessons learned for 2024
Real estate investment strategies: What to do with your mortgage and how to balance risk

🕒 Chapters:

00:00 – Introduction: Welcoming Scott Trench
01:00 – Rising Interest Rates and Market Effects
03:00 – Housing Supply and the Lock-in Effect Explained
04:30 – Rent vs. Buy: How the Calculus Has Changed
09:00 – The Build-to-Rent Industry and Single-Family Rentals
12:00 – House Hacking in 2024: Is It Still Worth It?
16:00 – Multifamily Housing Supply and Regional Trends
17:00 – Commercial Real Estate: What’s Happening Now?
20:00 – How Interest Rates Are Crushing Commercial Investors
24:00 – Opportunities Amidst a Crisis: Where to Find Deals
27:00 – The Real State of Syndications: Risks and Rewards
33:00 – Evaluating Syndicators: How to Find Good Deals in 2024
36:00 – Real Estate Investment Strategies: Notes, Funds, and Lending
43:00 – Pay Off Your Mortgage or Invest?
50:00 – Long-Term Real Estate Bets and Holding Strategies
56:00 – Wrap-Up: Key Takeaways and Final Thoughts

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

509 | Getting Personal with Personal Finance | Ginger & Kim Sep 13, 2024

In this episode: surpriseFI, minimalism, frugality, emotional and psychological aspects of FI, and alternative lifestyles.

We often get a lot of great ideas and questions from the FI community, and what better way to answer some as well as inspire than bring in one of our own to discuss their journey! In this special Friday episode, Ginger is joined by member of the FI community, Kim, to discuss how she found herself on her “surpriseFI” journey. Together, the pair talks about balancing frugality and minimalism, the importance of designing the life you want, as well as share some resources and recommendations that helped her on her journey!

🔑 Key Themes Discussed:

The journey to achieving Financial Independence (FI) through surprise and discovery
Minimalism, frugality, and living below your means as a path to freedom
Transitioning from work life to financial independence and early retirement
Personal reflections on housing, relationships, and travel in post-retirement life
Emotional and psychological aspects of financial independence
Strategies for aligning personal values with financial decisions
Exploring alternative lifestyles: hatchback camping, Peace Corps, and low-cost living

🕒 Chapters:

00:00 – Introduction and How Kim and Ginger Met
02:00 – Kim’s Journey to Surprise Financial Independence
06:00 – Experimenting with Early Retirement: Leave of Absence Strategy
09:00 – Living Frugally: Kim’s Minimal Spending Habits
12:00 – Kim’s Unique Housing Situation and Thoughts on Real Estate
15:00 – The Role of Minimalism in Achieving Financial Freedom
17:00 – Life After Retirement: Adventure, Travel, and Hatchback Living
23:00 – Challenges and Opportunities in Dating After FI
27:00 – Personal Growth, Goals, and the Desire for Meaningful Projects
33:00 – Financial Planning Tools and Resources for FI
35:00 – Balancing Frugality and Enjoyment: Traveling on a Budget
40:00 – Final Thoughts: Kim’s Recommendations for an Extraordinary Life

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

508 | 5% SWR, Revealed Preferences, and the 3 Stories | Frank Vasquez Sep 09, 2024

In this episode: 5% safe withdrawal rate, the three stories, psychology and personal finance, and community.

In this insightful episode of the ChooseFI Podcast, Brad chats with Frank Vasquez, a well-known figure in the financial independence community and the voice behind Risk Parity Radio. They delve into Frank’s journey from a career in law to becoming a personal finance expert, and explore topics like the 5% safe withdrawal rate, revealed preferences, and Frank’s three defining life stories. This conversation offers insight on approaching personal finance, investments, and life after achieving financial independence. Frank shares his unique blend of academic rigor, personal curiosity, and his thoughtful approach to living with purpose in the post-FI world.

🔑 Key Themes Discussed:

Understanding the 5% Safe Withdrawal Rate (SWR) and its practical application.
How revealed preferences shape financial and life decisions.
The three stories Frank lives by: the Curious Child, the Starfish Thrower, and the Mexican Fisherman.
How narrative psychology impacts our personal finance decisions.
Personal experiences in managing life post-financial independence.
The intersection of economics, personal finance, and storytelling.
Practical insights on podcasting, community engagement, and sharing financial knowledge.

🕒 Chapters:

00:00 – Introduction to Frank Vasquez and Risk Parity Radio.
03:00 – Frank’s Journey: From Law to Personal Finance Expert.
07:30 – Understanding the 5% Safe Withdrawal Rate.
15:00 – The Three Stories Frank Lives By.
25:00 – Revealed Preferences: What Do We Really Want?
35:00 – Narrative Psychology and Personal Finance Decisions.
45:00 – Post-FI Life: Teaching, Relationships, and Purpose.
55:00 – Frank’s Thoughts on Podcasting and Community.

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

507 | Taking the Fear Out of Your Future | Ginger roundup Sep 02, 2024

In this episode: overcoming fears, the importance of community, community wins, reaching FI goals, and ripple effects.

This week Brad is re-joined by Ginger for another installment of the round-up, where we will be discussing topics such as new 529 plans, the importance of making connections within your community, and actionable steps for overcoming anxieties while on your FI journey! Additionally, it wouldn’t be a round-up episode without as well as shouting out some frugal wins from our wonderful community! While these episodes are not only a great way for us to give you personal updates and perspectives, it’s an even better way for us to highlight some of the tips and tricks you’ve picked up on your respective FI journeys!

🔑 Key Themes Discussed:

The psychological aspects of financial independence and overcoming fear.
Building a fulfilling life by focusing on fulfilling days.
Strategies for maximizing benefits from 529 plans.
The importance of community and connection in the FI journey.
Overcoming anxiety and embracing serendipity in life choices.
Practical steps for financial checkups and optimization.
Leveraging travel and experiences for personal growth and connection.
Exploring frugality and financial prudence in everyday decisions.

🕒 Chapters:

Introduction to the Episode with Brad and Ginger
Highlighting Community Wins and Stories
Embracing Challenges and Overcoming Fears in Personal Growth
Listener Voicemail – Updates on Reaching FI Goals
New Rules and Tips for 529 Plans
Frugal Wins of the Week
Big Financial Moves and Their Ripple Effects
Conclusion and Reflections on Building Community and Connection

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

506 | ProjectionLab | Kyle Nolan Aug 26, 2024

In this episode: entrepreneurship, side hustles, overcoming fear, community, sharing and maintaining passion projects.

This week we are joined by Kyle Nolan, creator and founder of ProjectionLab, where we will be discussing how he left his 9 to 5 to pursue a passion project, some of the challenges and realizations he’s faced while creating his software, as well as the importance of investing in your interests regardless of the risk or self-doubt you may feel. The journey to FI offers many things, such as freedom and autonomy to pursue new things, but it’s important to remember that you don’t have to wait until you reach FI to start investing in things that are of value to you! By pouring yourself into something that interests you will always guarantee a payback!

🔑 Key Themes Discussed:

Kyle’s journey from traditional employment to entrepreneurship.
The development and impact of ProjectionLab in the FI community.
The role of personal passion in creating and growing a side hustle.
Overcoming fear and indecision when launching a new venture.
The importance of a supportive community in achieving financial independence.

🕒 Chapters:

Introduction to Kyle Nolan and ProjectionLab
Kyle’s background and the start of his FI journey
The motivation behind creating ProjectionLab
The challenges and rewards of entrepreneurship
The pivotal moment of launching ProjectionLab on Hacker News
The significance of mental headspace in pursuing side projects
Brad’s reflections on proof of concept and personal finance journey
How to encourage children to explore their passions in technology

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

505 | Mailbag: Getting Started with FI, Debt vs. Investing, Dividends, 4% Includes Taxes?, Roth 401k | Rachael Camp Aug 19, 2024

In this episode: debt and investing, the 4% rule, Roth 401k and traditional 401k, and total return investing.

This week we are back with a listener Mail Bag featuring returning guest Rachael Camp! Together, we will be answering questions and giving our feedback on nuanced topics asked by the community! Listen along for discussions about the 4 percent rule, how taxes are factored into your FI number, investing in dividends, paying down debt versus investing, and finally a shortlist of actionable steps one could take if they are young and beginning their FI journey. There is much to discuss and so much more to learn this week as we tackle your FI questions!

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

🔑 Key Themes Discussed:

Introduction to Financial Independence
Debt vs. Investing
The 4% Rule and Taxes
Roth 401k vs. Traditional 401k
Dividends vs. Total Return Investing
Second Generation FI

🕒 Chapters:

Getting Started with FI
Debt vs. Investing
4% Rule and Tax Implications
Roth 401k vs. Traditional 401k
Dividends vs. Total Return Investing
Second Generation FI

🔗 Mentioned Links and Resources:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

504 | Visualizing Your Domino Effect | Devon Aug 12, 2024

This week on ChooseFI, Brad welcomes Devon, a 22-year-old National Guard member and aspiring mechanical engineer, to discuss the power of intentionality and personal finance! Together, Brad and Devon explore how small, deliberate actions can create a domino effect in shaping one's financial future. Devon shares his journey from joining the National Guard at 17 to discovering financial independence through ChooseFI, and how his disciplined approach to life has led him to save for his first home, maximize military benefits, and even inspire his peers.

🔑 Key Topics Discussed:

The Domino Effect: How Small Actions Lead to Big Changes
Financial Independence: Starting Young and Staying Disciplined
Maximizing Military Benefits: Tuition Assistance and Beyond
Real Estate Goals: Saving for a Down Payment with Intentionality
Mentorship and Networking: Learning from Industry Professionals
Practical Financial Tips: Budgeting, Saving, and Investing Wisely

🕒 Chapters:

Introduction to Devon's Story and His Early Start in FI
The Domino Effect: How Devon Visualizes His Financial Future
Navigating College and Military Life: Tuition, Benefits, and Budgeting
Saving for Real Estate: Devon's Plan to Buy His First Home
Mentorship and Networking: Building a Successful Career Path
Practical Financial Tips for Young Adults and Military Members
Intentional Living: Balancing Work, School, and Personal Goals
Key Takeaways and Final Thoughts

🔗 Devon's Links and Resources Mentioned in the Show:

Devon's Website: Freedom By the Day
Liberated Mind Library Instagram
Contact Devon via Email: Freedombytheday@gmail.com

503 | Deep Dive: Roth IRA Conversion Ladder Aug 05, 2024

In this episode: Roth IRA conversion ladder, starting with the end in mind, investing for growth or stability, and retirement planning.

While we have covered Roth IRA Conversion Ladders on ChooseFI before, we have never in the past taken such a deep dive into the subject like we do in this week's episode! Once again, we are joined by friend of the show Cody Garrett from Measure Twice Money, as we cover a high-level-FI approach to the Roth IRA conversion ladder and ways one could approach propelling themselves into a FI fueled retirement!

Cody Garrett:

Website: Measure Twice Money
YouTube: @MeasureTwiceMoney

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

502 | Making FI Fun Again | Roundup Jul 29, 2024

In this episode: travel rewards, frugality, companion passes, international travel, intentional spending, and listener questions.

This week Brad is re-joined by Ginger as together they go back to basics during our returning round-up segment! This time around, the pair will be talking about recent travels and hacks they’ve used, travel rewards tips, answering some community questions, and shouting out some of your FI wins of the week! This episode is a great way to crowd-source new tips for people just beginning their FI journey, from learning how to navigate companion passes when traveling, to learning how to both save and spend your money with intentionality!

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

501 | It ALL worked. ALL of it. | Connie Jul 22, 2024

In this episode: travel rewards, IRA conversions, working with FAFSA, health insurance, and the FI journey.

This week we are joined by community member and listener Connie to discuss the beginning of her FI journey, and the transformative steps she’s taken to further maximize her journey for her and her family. With so many resources available to learn and assist you while on the path to FI, the influx of information may seem overwhelming. Knowing how to organize the information will allow you to utilize the hacks and tricks that take some of the pressure off, and grant the opportunity for you to adapt and create the life you want!

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

500 | Choose Financial Independence Today Jul 15, 2024

In this episode: FI numbers, financial independence, approaching problems differently, and adjusting spending to accommodate FI.

This week join our host Brad in celebrating 500 episodes of Choose FI, as he talks about the start of his FI journey, and highlights topics and episodes from the last few years. The path to FI isn’t just about simplifying your life, but empowering yourself and taking action to design and create the life you want to be living. And while the list is endless for how FI can improve your life, the community you find while on this journey is just as rewarding. Thank you to our listeners and supporters for being on this journey with us!

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

499 | Overcoming Limiting Beliefs | Jess - Fioneers Jul 08, 2024

In this episode: limiting beliefs, flipping the script, looking for evidence, empowering beliefs, and imposter syndrome.

This week we are rejoined by Jessica from The Fioneers, to discuss the idea of limiting beliefs, from knowing how to identify and define them, to learning to work through and overcome them using her six strategy method. To put this method into practice we workshop two examples of limiting beliefs from FI community members, Samantha and Kyle. While having fears is natural and part of what makes us human, it’s important to be able to distinguish what fears are valid and what limiting beliefs are just holding you back. Whether it’s believing you’re not doing enough on your FI journey, or having a fear of failure, making sure you are continuously working to empower yourself and sift through the self doubt will ensure you live your life with more power and confidence!

The Fioneers:

Website: thefioneers.com
YouTube: @fioneers
Free eMail Course: Overcoming Limiting Beliefs

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

498 | The 6 Pillars of Health | Dr. Bobby Dubois Jul 01, 2024

In this episode, exercise, sleep, nutrition, mind body activities, social relationships, heat and cold exposure.

This week we are joined by Dr. Bobby DuBois author and host of Live Long and Well podcast, where we will be discussing health optimization and wellness by deep diving into each of what he calls the 6 pillars: Exercise, Sleep, Nutrition, Mind-Body Work, Heat and Cold Exposure, and Social Relationships, while also providing some actionable takeaways you can do in order to live your healthiest life! The best part of the FI journey is you can create and live the life the way you want, but neglecting your physical and mental health may not allow you to thrive the way you want as you inevitably age. Taking the time and the space to prioritize your health, whether it be big or small, can make such a difference over time, and can ensure you’ll be living long into your retirement and well after!

Dr. Bobby Dubois:

Website: drbobbylivelongandwell.com
Website: Madrone Springs Ranch
Podcast: Live Long and Well with Dr. Bobby

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

497 | Your Social Security Questions Answered | Mike Piper Jun 24, 2024

In this episode: full retirement age, earnings, spousal benefits, survivor benefits, filing for benefits, and the earnings test.

This week, Mike Piper joins the show to talk all things social security and answer listener questions that arose from our last social security related conversation back in episode 474! Whether it is discussing the full retirement age, discussing when to file for benefits, and different situations and their correlating differing types of benefits, Brad and Mike cover your burning questions so when the time comes you can catapult yourself into retirement confident and comfortably. While the topic of social security can often be confusing, being informed and prepared based on you and your families situation can make approaching it a lot less formidable, so listen along now to be ready down the line when it is your time to file!

Mike Piper:

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

496 | Mailbag: Roth vs. Trad, $35k Roth to 529, Combining Finances | Rachael Camp Jun 17, 2024

In this episode: roth versus traditional IRA, second generation FI, FI and newlyweds, and retirement planning optimization.

This week we are diving back into the listener Mail Bag with our returning guest Rachael Camp to answer questions from the community! Today we will be discussing the differences between Roth and Traditional IRAs and the future variables and factors you should consider, as well as discuss the new rules and considerations surrounding 529 plans and how to best financially plan when considering your children and your spouse. Listen along as YOU, the community, dictate the conversation with your hot-button FI questions!

Rachael Camp:

Website: rachaelcampwealth.com
Twitter: @camp_wealth
YouTube: @CampWealth
Instagram: @campwealth

Please note:

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

495 | The Lazy Landlord | James Lowery Jun 10, 2024

In this episode: real estate, lazy landlording, attracting the right tenants, finding ideal situations, and traveling.

This week we are joined by returning guest James Lowery to discuss his “lazy landlord” concept to streamline and simplify real estate investing as well as set processes in place that not only make your life easier as a landlord but make it easy for your tenets as well! If you are on the FI journey and curious about adding real estate into your portfolio, whether it be long or short term rental properties, there are ways to make it a more simple process than you might think. With some planning and intentional action, the lazy landlording life could be well within your grasp!

James Lowery:

Website: rethinktheratrace.com
eBook: Tenant Proof Your Property

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

494 | Money is Your Best Form of Protest | Tori Dunlap Jun 03, 2024

In this episode: financial freedom, starting your own business, you can't sprint forever, buying vs renting, and investing.

This week we are rejoined by host of Financial Feminist podcast and creator of Her First 100K, Tori Dunlap, to fill us in on her journey with FI over the last few years, discuss what financial equity and the importance of building financial foundation and literacy among marginalized groups, as well as discuss how financial advice can differ for men and women. While money can be linked with stability and ease in one's life, the real power that comes from personal finance and independence is the freedom it allows you to not only change your life, but instill change in the communities around you. Although there can be times you feel guilt or shame when discussing financial literacy, there are endless resources at your disposal to educate and have you feeling confident.

Tori Dunlap:

Website: herfirst100k.com
Book: “Financial Feminist: Overcome the Patriarchy’s Bullsh*t to Master Your Money and Build a Life You Love”
Podcast: Financial Feminist
Instagram: @herfirst100k
Where to Start: Her First 100k Quiz

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

493 | Design Your Extraordinary Life | Alan & Katie Donegan May 27, 2024

In this episode: doing everything but not at once, building your extraordinary life, optimizing your time, and what to do after FI.

This week we are joined by Alan and Katie Donogan as well as my guest co-host Ginger live from the Design Your Extraordinary Life Weekend event in Las Vegas, where we will be discussing their exercise of envisioning what an extraordinary life can look like in designated areas of your life, as well as learning how identify and overcome limiting beliefs that can hold you back from achieving your dream life. Reaching your FI goal can radically change your life and usher in new freedom, but it doesn’t necessarily mean all your problems go away. While you may be focused on taking actionable steps to to hit your FI number, it's just as important to take actionable steps to build and create the life you want to be living! By taking account of certain areas of your life and identifying the areas and mindsets that need to be changed in order to achieve your extraordinary life, you will not only be on track to living your best life on your FI journey, but continuing to live it well after you reach the finish line!

9 Life Snapshot Categories (Explained here.)

Love and Relationships
Career or Business or Mission
Finances
Physical Environment
Friends and Family
Fun, Adventure and Passion
Health and Wellness
Personal Growth and Development
Spirituality

Alan and Katie Donegan:

Website: alandonegan.com
YouTube: The Donegans

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

492 | The RRTTLLU Investing Framework | Jesse Cramer May 20, 2024

In this episode: RRTTLU, actual risk, actual return, balancing portfolios, understanding your timeline, taxes, and legal situations.

This week we are joined by Jesse Cramer of the “Best Interest" blog and podcast to discuss “RRTTLLU”, an acronym that provides a framework and guide of some of the factors one should consider when they start investing. While investing on your own can seem complex with many factors to consider such as your risk tolerance, the potential tax liabilities, and returns; being realistic about what you want to get out of your investment and what timeline you are on will only ensure your success. Considering some of these factors before you start investing can help you to choose your investments smartly, and give you the confidence and self-assurance for when changes or uncertainties come and go!

Jesse Cramer:

Website: bestinterest.blog
Podcast: The Best Interest Podcast

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

491 | Answering Your Questions on How to Access Money Before 59.5 | Sean Mullaney May 13, 2024

In this episode: 72t, Roth 401k’s, Roth IRA’s, The Pro Rata Rule, PUQME, HSA’s, Retirement and Education, and Roth Conversions.

In one of our faster update episodes ever, friend of the show Sean Mullaney re-joins Brad to follow up on the episode we published back in February, “How to Access Your Retirement Accounts Before 59.5,” as well answer some of the questions our community had around the subject. We in the FI community know that retiring is an option way sooner than we were originally led to believe, so listen along as Brad and Sean shed some light on ways you could potentially access your retirement savings before facing the edge of your golden years.

Sean Mullaney:

Website: fitaxguy.com
Website: mullaneyfinancial.com
Twitter: @SeanMoneyandTax
YouTube: @SeanMullaneyVideos

Timestamps:

1:05 – Introduction
1:58 – Optimizing for 72t
10:25 – Roth Conversions and Premium Tax Credits
22:21 – Roth 401k and Roth IRA
27:08 – The Pro-Rata Rule
36:17 – PUQME and HSA’s
45:39 – Using Retirement Withdrawals for Education
50:40 – The Rule of 55 and Solo 401k’s
55:11 – Marriage and Taxes
61:32 – IRA and Health Insurance Premiums
64:13 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

490 | The Ultimate Random Show | Ginger May 06, 2024

In this episode: events, community, travel rewards, medidations, mini retirements, travel wins, and travel points.

This week we are back with friend of the pod Ginger to discuss a mixed bag of topics, such as attending FI events, travel rewards and companion passes, as well as the idea of a “mini” retirements and what that can look like while on the path to FI. However, this episode isn't titled "The Ultimate Random Show" for nothing, as we branch off in quite a few different directions as we cover those topics. As opposed to having us try and describe it for you, it may be best to go ahead and hit play so you can see for yourself!

Timestamps:

0:47 – Introduction
1:42 – Events and Community
11:59 – Travel Rewards
21:41 – Meditation
24:46 – Brad’s Phoenix Trip
31:40 – What We Are Listening To/Mini Retirements
45:11 – Travel Points/Wins
51:32 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

489 | Freedom Before FIRE | Trip of a Lifestyle Apr 29, 2024

In this episode: connecting points, the power of FU money, the early retirement era, and enjoying the journey.

This week we are joined by returning guests, Steven and Lauren Keys from Trip of a Lifestyle, to update us on their FI journey and “early retirement era,” as well as discuss the importance of finding the courage and freedom to make radical lifestyle changes in the present. We all know that money can open up new opportunities in your life, whether it’s having the flexibility to leave your job for a better one or even relocating to a dream country, but most of us forget that these opportunities can be achieved sooner than you think! The journey to FI is about taking actionable steps to build and achieve the life you want, and you don’t have to wait until you’re fully retired to do it! While you’re starting to save and spend less, remember that you’re getting closer and closer to your goal, but even still that it’s not a poor decision to spend money on things that are important to you and can improve your life!

Trip of a Lifestyle:

Website: tripofalifestyle.com
Instagram: @tripofalifestyle
Crambetter: crambetter.com

Timestamps:

0:46 – Introduction
3:12 – Connecting Points
6:39 – Taking Money Out of the Equation
13:14 – The Power of FU Money
23:39 – Getting to The Early Retirement Era
33:27 – Investing
44:59 – Paying Yourself Last?
48:39 – Enjoying the Journey/Setting Yourself up for Success
58:13 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

488 | The Courage to Take Action | EconoMe LIVE with Doc G Apr 22, 2024

In this episode: courage from community, what to do next, overwhelm, finding community, and the evolution of FI.

Live from the EconoMe Conference in Cincinati Ohio, Brad is joined by Jordan "Doc G" Grumet and a room full of passionate members of our community to discuss finding the courage to take action in your FI journey. While we understand money can be a north-star for many early in your venture towards FI, what happens once money is no longer the root of your goals? Where do you shift your focus to next? Well, sometimes finding answers to these questions is a little easier when you have help from some of your friends. Listen along as Jordan, Brad and our community speculate on their ideas for what their next steps are.

Doc G:

Website: earnandinvest.com
Podcast: The Earn and Invest Podcast

Timestamps:

0:41 - Introduction
1:41 - Courage From Community
7:40 - Roger and What To Do Next?
20:31 - Allison and Finding Community
30:15 - What/Where is the Overwhelm
34:49 - The Evolution of FI/Being The Change You Want To See
41:11 - Reconciling With Social Responsibilities
44:34 - Charitable Giving
47:21 - Interacting Outside of The Community
51:55 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

487 | Military FI: Optimizing Your Financial Plan before Military Retirement | Daniel Kopp, CFP Apr 15, 2024

In this episode: survivor benefit plans, VA benefits, VSO's disability benefits, tax planning, healthcare, and blended retirement systems.

This week we are joined by Daniel Kopp, founder of Wise Stewardship Financial Planning, to outline ways you can best prepare for military retirement. Together we cover pensions, navigating the Survivor Benefit Plan and additional benefits, healthcare and disability resources, as well as other financial decisions you can consider as you begin to transition out of the military. When dealing with any kind of retirement planning, taking actionable steps to prepare and get a plan in place for you and your family is essential. While everyone's circumstances may be different as they transition out of the military, there are many resources available and benefit programs you are entitled to before and after you leave duty!

Daniel Kopp, CFP

Website: wisestewardshipfp.com
Podcast: Military to Financial Planner

Timestamps:

1:26 – Introduction
2:32 – Approaching Military Retirement/Blended Retirement System
9:38 – Military Benefits/Healthcare
15:36 – VA Benefits/Term Life Insurance
22:12 – Disability Benefits/VSO’s
30:17 – Survivor Benefit Plans
43:13 – SBP Contingencies and Child Coverage
50:41 – Tax Planning
56:26 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

486 | The Wealthy Educator | Chris Travers Apr 08, 2024

In this episode: public service accounts, side hustles, making FI possible, frugality, giving yourself freedom, and side hustles.

This week we are joined by Chris Travers, a New York City public school teacher and FI community member, to discuss his journey from being a natural saver to becoming a savvy investor, talk advantages and disadvantages of some of the retirement accounts provided to teachers, as well as discuss some ways he has been able to grow his net worth in the last 10 years. Frugality is a term that often comes up while on the FI path, and finding a balance of saving and spending is crucial to reaching your financial goals. Remember that where you decide to save and spend and how you do so will evolve throughout your FI journey! While it can be hard to cut costs of the things you enjoy in the present, being willing to cut out what you don’t need can set you up for success in the future!

Chris Travers:

Timestamps:

0:54 – Introduction
6:47 – Public Service Accounts
11:38 – Diving Into FI
15:08 – Side Hustles/Making FI Possible
22:17 – Renting vs Buying
26:43 – Frugality and Loosening the Purse Strings
32:25 – Giving Yourself Freedom
37:53 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

485 | Mailbag: Spending Down to Zero, High Fee 401k, Mini Retirements | Rachael Camp Apr 01, 2024

In this episode: spending down to zero, the ratcheting rule, the guardrails approach, high fee 401k's, and mini-retirements.

This week we are diving back into the listener mailbag with Rachael Camp to address the pressing questions our community has! Whether it's curiosity towards the concept of dying with zero, determining whether it is a good time to take a mini-retirement, or working with high-fee 401k's, Brad and Rachael tackle it all! Listen along as YOU the community dictate the conversation with your hot button FI questions!

Rachael Camp:

Website: www.rachaelcampwealth.com
Twitter: @camp_wealth

Please note:

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

Timestamps:

0:55 – Introduction
1:38 – Spending Down to Zero
10:15 – The Ratcheting Rule and The Guard Rails Approach
20:38 – Flexible Spending Strategy
27:01 – Does Everything Need to be Optimized?
31:15 – High Fee 401k’s
41:48 – Mini Retirement Considerations
49:54 – Roth IRA Contributions and Faze Out Limits
55:57 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

484 | A Family Journey From Debt to Early Retirement in a Decade | Joel and Emily Allen Mar 25, 2024

In this episode: wants vs needs, side hustles, tax planning, college hacking, travel rewards, mindset, and living your values.

This week we are joined by Joel and Emily Allen, a married couple with children based out of Iowa who truly embody what the FI movement is all about! Not only have they seized control of their life and finances, but have also managed to start a successful side hustle, provide incredible resources to the community around them, travel the world, and so much more! While the FI movement is about financially freeing yourself and your family, it is also important to remember why we want that freedom. Not stressing about money is just one piece of a fulfilling life, once you have that freedom, take advantage of it like the Allen’s have!

Timestamps:

1:25 – Introduction/The FI Mindset
9:02 – Budgeting/Wants and Needs
14:59 – Side Hustles
21:02 – Financial Literacy to FI
23:29 – Tax Planning/Travel Rewards
29:11 – College Hacking
42:05 – Living Your Values and Taking Time Off
48:39 – The Importance of Knowing the Rules
53:48 – Traveling Like a Pro
69:25 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)
Get a cheaper phone plan with Mint Mobile

483 | Effective Giving for the FI Community | Rebecca Herbst & Jack Lewars Mar 18, 2024

In this episode: building a giving framework, the giving pledge, compound impact, donor advised funds, and different ways to give.

Is it better to give to charity in a lump sum versus incrementally? What are the tax implications of donating? What are the benefits of using donor advised funds? This week we answer these questions and more with the help of Rebecca Herbst and Jack Lewars as we discuss charitable donations and effective giving while on the FI journey. A large part of FI is taking actionable steps to improve your life, but this journey also opens up opportunities to improve the life of others. While navigating donations while on the path to FI can seem tricky because we are so focused on attaining our FI numbers, there are still many ways you can give back and make a difference. Creating the habit of effective giving can help you leave an impact on yourself and the world at large! There are many resources available that can help calculate what you can give while remaining on the FI track, as well as help you see how your donations are making a difference!

Rebecca Herbst & Jack Lewars:

Yield and Spread: yieldandspread.org
Rebecca’s Coaching Program: Coaching for do-gooders
1 For The World: 1fortheworld.org
Jack’s LinkedIn: Jack Lewars

Timestamps:

1:37 – Introduction
4:24 – The Giving Pledge
11:59 – Building A Framework And Effective Giving
23:20 – Should You Get To FI Before You Give?
33:12 – Compound Impact
39:48 – Feedback From Giving And Fun Funds
51:08 – Different Ways To Give
61:09 – Donating Appreciated Stocks
66:59 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

482 | Update: Are Remote Tech Careers Still Relevant in 2024? | Bradley Rice Mar 15, 2024

In this episode: salesforce, lifestyle design, testimonials and verification, the hidden job market, and talentstacking.

Once again joined by friend of the show Bradley Rice, the owner and creator of TalentStacker, to update us on the value of SalesForce and career pivoting in 2024. While on the FI journey, you are actively creating the life you want to live. For many that means transitioning out of their life-long careers and opting for ones that offer something different and more accustomed to the life you’re creating. Learning a new skill or starting a side hustle can be the first step to finding that new career, and finding a program that works for you should offer more than just a certification, but assist you in finding new opportunities and a community that supports you!

Bradley Rice:

Website: talentstacker.com
Facebook: Salesforce for Everyone
Salesforce 5 Day Challenge: Take the FREE 5-Day Challenge
Podcast: Salesforce for Everyone

Timestamps:

1:38 – Introduction
4:17 – Work, Lifestyle Design, and Talentstacking
10:15 – Testimonials, Doing Your Research, and Verification
14:55 – The Hidden Job Market
19:36 – Entering a Salesforce Career with Talentstacker
26:39 – Salesforce Security
32:25 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

481 | Mailbag: Long-Term Care, Aging Parents and their Finances | Danielle Miura Mar 11, 2024

In this episode: caregiving and FI, retirement planning, reverse mortgages, long-term care, and long-term care insurance.

This week we are joined by Danielle Miura to discuss how her experience as a caregiver has impacted her FI mindset, as well as answer listener questions pertaining to planning for your own long-term care while on the path to FI. As you and your loved ones get older, it’s important to start considering what additional finances they may require. From long-term healthcare to assisted living, there are many factors that not only impact their life financially, but could impact you and your FI plans. While it may be uncomfortable to have conversations with loved ones about their finances and expenses, it is imperative to have these discussions early and create a plan that works for you and your family.

Danielle Miura:

Website: spark-fin.com
LinkedIn: Danielle Miura
Twitter: @Daniellemiula

Timestamps:

1:19 – Introduction
2:22 – Caregiving and FI
7:28 – Dealing With Poor Retirement Planning
15:38 – Reverse Mortgages and Viability of Selling The Home
21:41 – Having The Uncomfortable Conversation
24:40 – Planning For Your Final Years
32:41 – Long-Term Care and FI
36:10 – Long Term Care Insurance
45:30 – Conclusion

Resources Mentioned In Today’s Episode:

Subscribe to The FI Weekly!

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

480 | Update: Healthiest Year Ever | Dean Turner Mar 08, 2024

In this episode: optimized exercise, recovering, machine use, increasing your healthspan, and long-term thinking.

This week we are joined by Brad’s friend and personal trainer, Dean Turner, to discuss the changing landscape of strength training, and how principles such as consistency and adherence coupled with rest and recovery can also be applied to both your fitness and FI journey. We often talk about how the path to FI is not just about working towards a monetary goal, but rather creating a better life for yourself. For some this can mean taking a personal account of your health, and taking actionable steps to improve it. Just as making financial changes requires consistency, making physical changes requires the same. While these changes don’t happen overnight, these actions continuously build off of one another and make you stronger!

Dean Turner:

Twitter: @DeanTTraining
Website: deanturnertraining.com

Timestamps:

2:30 - Introduction
3:41 - Optimized Exercise
9:13 - Recovering and Machine Use
20:51 - Increasing Your Healthspan
27:44 - Long-Term Thinking
29:48 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

479 | Are You on Track to FI? | FI Roundtable Mar 04, 2024

In this episode: FI in your 20s, the boring middle, compounding, fat FI, compounding, checkpoints, and building a life.

This week we are joined by Doug and Carl from the Mile High FI podcast to talk about their respective FI journeys and answer a listener question about pursuing FI in your 20s; as well share some tips for enjoying the experience and navigating times in the journey that can feel a bit slow. While figuring out your FI goal requires you to do some work to figure out your FI number, that number and the steps you take to reach that goal are all unique to the individual. That being said, it can be tricky at times to know if you are on the right track when the journey to FI is different for everyone. Remember, although this journey is about reaching financial independence, it’s also about changing and creating the life you want and joining a community that will always inspire you when times feel slow.

Mile High FI:

Podcast: milehighfi.com
Newsletter: Join the Mile High FI Club

Timestamps:

1:13 - Introduction
2:41 - Analyzing Finances In Your 20s
9:31 - Compounding Power
13:25 - The Boring Middle
21:01 - FI Role Models
26:41 - Building A Life On The Journey
35:01 - Fat FI
45:37 - Saving Versus Life Enhancement
54:21 - FI Checkpoints
57:52 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

478 | 2024 Investing Update | Brian Feroldi Feb 26, 2024

In this episode: buy and hold, macroeconomics, interest rates, bond investing, when to sell, mindset, and thinking differently.

This week we are joined once again by friend of the show Brian Feroldi to discuss the stock market and investing as we head into 2024. As most of you know by now, keeping your head down and staying the course is a pretty typical investing strategy in the FI community, but it is important to remember personal finance is personal. Depending on your situation, life may require you to mold that strategy into something else as your mindset and seasons of life change! Make sure your are not only optimizing your financial situation, but also your life in the process!

Brian Feroldi:

Website: stockinvesting.school
Website: longtermmindset.co
Twitter: @BrianFeroldi
LinkedIn: Brian Feroldi

Timestamps:

0:33 - Introduction
3:42 - Buy and Hold
8:36 - "Macroeconomics"
15:17 - The Impact of Interest Rates/ Bond Investing
20:36 - High Yield Savings Accounts
27:18 - 2024 Investing
33:19 - When to Sell
38:05 - The Evolution of Your Mindset
43:40 - Thinking Differently
47:52 - VTSAX
51:21 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

477 | The Hot Seat: Community Edition Feb 19, 2024

In this episode: the wonderful ChooseFI community shares advice by taking the hot seat through listener voicemails.

Ginger joins the podcast this week for a special “Hot Seat” episode to listen to some voicemails set in from our listeners, in which our community answered questions that we typically ask our guests when they take the Hot Seat! From discussing favorite books and podcasts, to learning some new tricks and takeaways that have helped you on your FI Journey, it’s incredible to hear the ways you are taking action and creating habits that are making your journey to FI meaningful and motivational! We often stress that living FI isn’t about chasing a number, but rather building up the life you want in the process of working towards your goals, and while there may be mistakes made, there are many learning opportunities and new perspectives of success that make this journey incredibly rewarding.

Timestamps:

1:45 – Introduction
2:29 – Ashley and Atomic Habits
10:17 – Tyler and Opportunity Cost
19:09 – Amanda and Mental Wellbeing
25:17 – Caesar and PSLF Forgiveness
30:56 – Aaron, House Hacking, and DIY
37:17 – Ginger Takes The Hot Seat
59:33 – Brad Takes The Hot Seat
76:19 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

476 | Love, Loss, and Money: The Shocking Financial Aftermath of a FI Spouse’s Death | Amy Feb 12, 2024

In this episode: what follows tragedy, the importance of wills and beneficiaries, intestate succession, and probate.

This week we are joined by Amy to discuss her personal account and experience with estate planning in the event of an unexpected passing, and what this can look like when plans aren’t in place. While death can be an uncomfortable topic to think about, it’s important to take time to garner a plan in place so that your loved ones are both prepared and not overwhelmed in the event of your passing. A large part of FI is about taking actionable steps to make your life easier, and estate planning is no different. From designating beneficiaries and setting up wills, to utilizing password verification methods on your accounts, there are many actionable steps you can take in order to make the process of passing easier for your family and loved ones. Amy’s story is not meant to be a cautionary tale, but rather a reminder to not ignore or avoid a personal subject matter just because it’s uncomfortable.

Timestamps:

1:23 - Introduction
2:45 - Amy's FI Journey
9:03 - Income Planning and FI
17:24 - What Follows Tragedy
28:33 - The Importance of Wills and Beneficiary Designation
36:23 - Preparing in Advance and Considering The Possibility
44:27 - Immediate Access and The Ancillary Things
48:15 - Probate
59:09 - Setting Up Your Estate
65:09 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

475 | How to Access Your Retirement Accounts Before 59.5 | Sean Mullaney Feb 05, 2024

In this episode: taxable accounts, the 72(T), inherited retirement accounts, 457B's, roth conversion ladders, and the rule of 55.

This week we are joined by the “FI Tax Guy” Sean Mullaney to walk through examples and discuss some strategies you could use when accessing your retirement funds early. No matter where you are on your FI journey, there can come a time where retiring early becomes a feasible option, but there can be many stipulations and tax implications that come with withdrawing your funds before the age of retirement. Tune in as we discuss several different options you can pursue in order access your money without having to wait until the 59 and a half year old threshold.

The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual. Brad and the ChooseFI podcast do not endorse Sean Mullaney, Mullaney Financial & Tax, Inc. and their services.

Sean Mullaney:

Website: fitaxguy.com
Website: Mullaney Financial and Tax
Twitter: @SeanMoneyandTax
YouTube: @SeanMullaneyVideos

FIRE in Vegas:

Join Brad Barrett from ChooseFI, the Donegans from Rebel Finance School and other FI enthusiasts for a weekend of inspiration, education and fun in Sin City.

Timestamps:

0:47 - Introduction
3:39 - Taxable Accounts
19:03 - Inherited Retirement Accounts
25:30 - The Rule of 55
28:39 - 457B's
30:46 - Roth IRA Conversion Ladder
39:12 - The 72(T)
54:52 - Paying the Penalty
57:25 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

474 | Social Security Deep Dive | Denis Shapiro Jan 29, 2024

In this episode: social security, disability, calculating social security, claiming social security, and due diligence.

This week we are joined by listener and owner of Financial Security Advocates Dennis Shapiro, to talk thru some of the insights and misconceptions surrounding Social Security Benefits, and what factors and resources you should consider while approaching retirement. The beauty of FI is that it opens up opportunities for you to retire early, but oftentimes we don’t consider how retiring early or even starting your own small business can impact your Social Security. While there is no true way of mastering the system to get the most benefit, there are many ways to prepare and plan in order to get the most out of your social security benefits! Remember, these benefits are not just safety nets when it comes time to retire, but can be an additional tool for investment that keeps you comfortable in your FI.

Denis Shapiro:

Website: fsadvocates.com

Timestamps:

1:16 - Introduction
5:10 - What Pays for Social Security?
11:13 - Social Security and FI/Disability Insurance
17:30 - What Earnings Go Towards Social Security?
23:19 - Disability, Work Subsidies, and Income Related Work Expense
29:03 - How Social Security Benefits Are Calculated
37:05 - Claiming Social Security
39:59 - Social Security and Medicare
44:28 - Social Security and Due Diligence
56:27 - Working and Disability Benefits
59:59 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

473 | Are We There Yet? 'Retire Early' Case Study Jan 22, 2024

In this episode: calculating when you retire, tracking expenses, health insurance, the importance of planning, and health spanning.

This week we are rejoined by Teresa as well as Fritz Gilbert of The Retirement Manifesto to walk us through a case study of how to approach retirement while on your FI journey. It’s a common question to ask when you can retire or when you can stop working? Luckily there are plans of action and resources available covered in today's episode that will leave you feeling better prepared to proceed with a plan for retirement, no matter what part of your FI journey you are on. While there are many factors to consider when planning for retirement, such as savings versus spending rate and repositioning your portfolio, all these factors are manageable when you have a good plan in place. Take the time now to feel confident for what life will be like leading up to and after you retire!

The Retirement Manifesto:

Website: theretirementmanifesto.com
Book: "Keys to a Successful Retirement: Staying Happy, Active and Productive in Your Retired Years" by Fritz Gilbert
Case Study: From Food Stamps to FIRE: A Case Study on Retirement Planning

Timestamps:

1:33 - Introduction
2:37 - Calculating When You Can Retire
7:46 - Does Retiring Early Effect Social Security?
15:06 - Tracking Spending and Expenses
20:55 - Health Insurance in Retirement
29:49 - The Importance of Planning/Changing Your Assumptions
40:17 - One More Year Syndrome/Your Health Span
45:00 - The Second Phase of Retirement
49:51 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

472 | The Cure for the Boring Middle | Fioneers Jan 15, 2024

In this episode: the boring middle, lifestyle design, flow states, moving towards purpose, experiments, and experiences.

This week we are rejoined by friend of the podcast Jessica from The Fioneers to the discuss the point of your FI journey known as the “Boring Middle,” and how through actionable steps and lifestyle design you can turn what feels like a stagnant stage in your FI journey, into one filled with growth and change! When you are well on your path towards reaching your FI goal, it is easy to feel like you’re not doing enough. But what feels like a waiting game can actually be an important time for self growth and experimentation. Taking the time to do some introspection to figure out what your core motivations are can allow you to begin opening yourself up to newer experiences that bring value into your life. So if you feel like you are currently on autopilot, there are steps you can take to shake up your routine and usher in new opportunities into your life. While you may have to quiet your own limiting beliefs in this process, you will learn more about yourself and what you want out of your life!

The Fioneers:

Website: thefioneers.com
YouTube: The Fioneers

Timestamps:

1:12 - The Boring Middle/Lifestyle Design
7:19 - Determining Your Version of Success
18:41 - Finding Your Flow State
28:16 - Implementing Your Designed Lifestyle/Moving Towards Purpose
36:09 - Questions, Experiments, and Experiences
46:59 - Making Dreams Actionable
52:09 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

471 | Mailbag: Inflation and FI, ACA Subsidies, Roth vs. Trad and More | Cody Garrett Jan 08, 2024

In this episode: inflation, coast FI, early retirement planning, future tax liability, IRA's and 401k's, and diversification.

This week we are rejoined by founder ofMeasure Twice Money Cody Garrett for another installment of the Mail Bag, where we will be talking through questions from our listeners covering topics ranging from inflation and its implications on your FI number, ACA subsidies and early retirement, as well as the similarities and differences with Roth accounts and future retirement tax liabilities. Listen along while we dip into the listener mailbag this week and discuss topics chosen from YOU the listener!

Cody Garrett:

Website: measuretwicefinancial.com
LinkedIn: Cody Garrett

Timestamps:

1:02 - Introduction
1:35 - Inflation and Your FI Number
11:41 - Early Retirement Planning
21:55 - Calculating Future Tax Liability
30:15 - Distinctions Between IRA and 401k
33:37 - Diversification and Tech Stocks
44:26 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

470 | The Spectrum of Financial Independence | Chris Hutchins Jan 01, 2024

In this episode: FI versus FIRE, coast FI, lean FI, tools for FI, the skill of spending, dying with zero, and prioritizing health.

This week we are joined by our friend and host of the “All the Hacks” podcast, Chris Hutchins to discuss the “spectrum” of FI, and all that falls in between. From the evolution of FI over the years, to the changes we’ve made on our respective journeys, and even differentiating terms such as FI versus FIRE and Coast FI, we cover it all! We also found some time to share some tools and resources that can be beneficial to you and your FI journey. While the path to FI allows you to take control of your financials and future, this journey can usher in so many new perspectives and changes that affect all areas of your life! Allowing yourself flexibility and remembering that what you are working towards isn’t just a number or early retirement, but rather a more fulfilling life!

Chris Hutchins:

Podcast: All The Hacks
Newsletter: All The Hacks Newsletter

Timestamps:

1:16 - Introduction
3:19 - FI Versus FIRE
10:11 - Lean FI
17:11 - Coast FI
30:20 - Tools for Tracking FI
41:48 - Optimizing Accounts
47:56 - The Skill of Spending and Dying With Zero
60:12 - Prioritizing Health
70:01 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

469 | A Tale of Action | Navish Bahl Dec 25, 2023

In this episode: real estate, upskilling, taking action, tracking your expenses, setting goals, getting on the same page, and the hot seat.

This week we are joined by listener Navish Bahl to discuss his journey on the path to FI, the actionable steps he’s taken in order to maximize his life, answer some questions in the HotSeat, and navigating your FI journey while your significant other or family may not be on board. There are many avenues you can utilize in order to achieve FI, and while it may be overwhelming at times to figure out what works for you and your journey, remember that the goal is to learn and go through life with more freedom and balance, not stress and burnout trying to chase a number. The path to FI is a personal one, and as you embark on your journey allow yourself some patience but also some flexibility, and don’t forget to extend some patience to others in your life who may not be on the same path.

Navish Bahl:

LinkedIn: Navish Bahl

Timestamps:

0:52 - Introduction
2:30 - The Inspiration to Start and Taking Action
11:44 - Real Estate and Rental Properties
18:42 - Upskilling, Getting New Jobs, and Making Connections
33:09 - Discovery, Education, and Action in FI
39:52- Tracking Your Expenses
46:34 - Getting on the Same Page
50:21 - The Hot Seat
55:18 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

468 | Year End Wins 2023 Dec 18, 2023

In this episode: checking boxes, supplementing income, life by design, taking action, the value of time, and year end wins!

This week we are re-joined by Johnathan for our 7th annual year-end-wins episode! Together we tune into voicemails sent by you the listener and celebrate your victories from 2023! From confidently investing in your future, to finding new friends and support systems within the FI community, we are proud to be a part of your journey towards reclaiming your freedom and your time! There are many small and large goals you all met that deserve to be celebrated! Listen along as we discuss and commend you for taking action and making the most out of your FI journey this year!

Timestamps:

0:53 - Introduction
3:03 - Katie, Supplementing Income, and Checking Boxes
6:56 - Rakesh, Second Generation FI, and Investing
9:02 - Stephanie, Life by Design, and the Health Snowball
11:45 - Brian, Coast FI, Teaching FI, and Choosy Consulting
16:16 - Boyd and Emergency Funds
18:13 - International Coast FI, Taking Action, and Reclaiming Your Time
21:25 - Anthony, Skilling Up, and Chasing Your Dream With FI
25:35 - Donna, Helping Family, and Finding Peace Through FI
30:24 - Bryan, The Value of Time, and Deciding to Change
37:31 - Paul, FI Travel Wins, Healthcare, and College Hacking
42:01 - Sabrina, Breaking the Cycle, Marginal Gains, and Being 1% Better
47:52 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

467 | The Power of Community | Amy, Diania, and Stephen Dec 11, 2023

In this episode: community, structuring FI events, unstructured time, the energy in the room, and vulnerability.

We all know that the online FI community can help you along the journey in a variety of ways, but the abundance and ease of access to that community can lead to us forgetting the impact live FI events can have on your life. Our Guests Stephen, Amy, and Diania from CampFI, FI Freedom Retreats, and The EconoMe Conference respectively can attest to the power of in-person communities as they are the ones who work so hard to put them together! Together with Brad, the foursome talk about the different benefits that can come as a result of joining these conferences, and how “the energy in the room” can help you find value and take in information in ways you never thought possible!

Amy, Diania, and Stephen:

Stephen (CampFI): campfi.org
Diania (EconoMe Conference): economeconference.com (10% off using code "choosefi")
Amy (FI Freedom Retreat): fifreedomretreats.com

Timestamps:

1:04 – Knowing Versus Doing/The Benefit of Events
8:32 – What Can Be Achieved Through Community
14:02 – Being Vulnerable/The Effect of Multiple Days
22:33 – The Evolution of FI Events
31:23 – Structuring FI Events/The Energy in the Room
43:00 – Attendees Finding Value
51:10 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

466 | Journey to Financial Freedom | Jamila Souffrant Dec 04, 2023

In this episode: finding a sustainable path to FI, adjusting your lifestyle, guac levels, mindset, and finding what you want.

Jamila Souffrant makes her long awaited return to the podcast to discuss building a sustainable path to FI, the importance of readjusting, financial freedom versus financial independence, as well as other topics detailed in her new book "Your Journey to Financial Freedom: A Step-by-Step Guide to Achieving Wealth and Happiness." While you may begin your FI journey with a set plan in mind, that doesn’t mean the actions you take along the trail of your journey won't serve you at different stages. On this journey, you should never feel like you are depriving or overindulging, but rather finding a balance that works for you and brings you happiness in the present. Remember, reaching your FI goal should never be at the cost of your happiness, and while making necessary changes is part of FI, you shouldn’t be sacrificing your happiness in order to reach your goal quicker. Being mindful and willing to change your plans just as life can change will not only bring you more freedom, but allow you to make the necessary mindset changes that will serve you in ways well beyond your financial journey!

Jamila Souffrant:

Jamila's New Book: "Your Journey to Financial Freedom: A Step-by-Step Guide to Achieving Wealth and Happiness"
Podcast: Journey to Launch
Website: journeytolaunch.com
Socials: @journeytolaunch

Timestamps:

0:49 - Introduction/Update From Jamila
5:02 - Finding Your Sustainable Path to FI
11:55 - The Perks of Pursuing FI/Adjusting Your Lifestyle Levels
17:17 - Diagnosing Your True Area of Need
22:39 - Gaining Stability/Having Power From Your Money
27:23 - The Importance of Mindset/Believing it's Possible
31:10 - Finding What You Want
38:59 - Setting Financial Goals
41:18 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Top 10 Recommended Travel Rewards Credit Cards
Empower: Free Dashboard to Track Your Finances
CIT Bank Platinum Savings Account
M1 Finance: Commission-Free Investing, 1-click rebalancing
CashFreely: Maximize Your Cash Back Rewards
Travel Freely: Track all your rewards cards and points
Emergency Binder: For Your Family’s Essential Info (code ‘CHOOSEFI’ for 20% off)
Student Loan Planner: Custom Consult (with $100 Discount)

465 | Jonathan Returns: Upside Down Economics and the Priceless Value of a Great Question Nov 27, 2023

In this episode: lessons from failure, curiosity, mastering the small things, skilling up, and the value of time.

The return of Johnathan! Yes Jonathan is returning to the show to catch up on the work he’s been doing behind the scenes over the last year and a half, the value of freeing up your time, skill spending, and the importance of focusing on the little things while keeping the bigger picture in mind. Whether it’s when you’re just starting your FI journey or if it’s in other areas of your life, failure and mistakes can be inevitable. However, they should never keep you from trying to build and create the life you are working towards! One of the key lessons taught in FI is to change your mindset from one of scarcity to one of growth, and part of that challenge means identifying failures and taking action to learn from them. While you are working towards your own “big picture” on this journey, don’t forget to focus on the smaller things. Not only will it allow you to pay closer attention to what you are doing right and wrong, but it makes it easier for you to pivot and reevaluate when necessary! This journey is not just about reaching that final goal, but about using the knowledge and lessons learned along the way to make life a little bit freer and a little bit easier!

Timestamps:

0:22 - Introduction
1:26 - Update From Jonathan/Lessons From Failure
8:53 - The Curious Mindset
17:57 - Failing Forward and The Small Things
27:42 - The Importance of Skilling Up in Today's World
36:30 - Your Most Valuable Non-Renewable Resource
44:11 - Paying Off The Mortgage/Donor Advised Funds
59:19 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or more with these 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-free investing with M1 Finance

464 | Budgeting Masterclass | Tiffany "The Budgetnista" Aliche Nov 20, 2023

In this episode: the make whole mindset, budgeting, grace and space, automation, and splitting it before you get it.

This week we are re-joined by Tiffany Aliche better known as "The Budgetnista” to discuss her new book "Made Whole: The Practical Guide to Reaching Your Financial Goals" which details her 10 step system towards financial wholeness, the ease of automating payments, the importance of accountability partners, as well as designing separate accounts to reflect your needs. It can be intimidating to begin addressing your finances and planning your financial future, but your past mistakes or lack of knowledge should never be the thing holding you back from beginning your FI journey. Building a financial foundation for yourself doesn’t happen overnight. Everyday it requires you to make the necessary changes and instill new habits that get you closer and closer to your goals. And while personal finance is personal, there is no reason to go through it alone. No matter your background or what stage of life you begin FI, there is a large community of people on this journey that will embrace and celebrate the smaller milestones just as much as the bigger ones!

Tiffany "The Budgetnista" Aliche:

Website: thebudgetnista.com
Get You Copy of Tiffany's New Book Coming Out on November 21st 2023: "Made Whole: The Practical Guide to Reaching Your Financial Goals"
Tiffany's Last Book: "Get Good with Money: Ten Simple Steps to Becoming Financially Whole"

Timestamps:

1:00 - Introduction
2:06 - The Make Whole Mindset
8:19 - Automation
18:34 - Grace and Space For Learning
28:29 - Split It Before You Get It
37:43 - Splitting Your Saving Accounts
44:41 - Emergency Savings/Personal Finance is Personal
54:28 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or more with these 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-free investing with M1 Finance

463 | Superpower of Frugality | Frugal Friends Nov 13, 2023

In this episode: frugality, value based spending, honoring your season, identity, budgets, financial goals, and minimalism.

When you think of the word frugal what comes to mind? To some it can mean spending on what you absolutely need and leaving little wiggle room for anything else, but to others frugality is not just a restrictive budget but a superpower! This week we are joined by Jen and Jill of the Frugal Friends podcast to discuss the intersectionality of frugality and the FI journey, as well as finding the balance between budgeting to invest in the future you want without depriving yourself in the present. Mindfulness and paying attention to the things you spend money on is an important part of the FI journey, but it is just as important to be mindful of the things that bring value and joy into your life. While budgeting and reducing your spending can help you reach the FI finish line a bit quicker, it should never be at the expense of cutting out the things in your life that are fulfilling! Implementing frugal habits and finding a budget that works and changes with your life can be an incredible tool while on the path to FI, because not only does it open up opportunities to invest monetarily, but also invest in yourself and the life you want to live!

Frugal Friends:

Timestamps:

1:11 - Introduction
3:24 - Balancing Frugality
12:38 - Frugality, FI, and How They Fit Together
17:21 - Budgeting and Value Based Spending
26:43 - Honoring Your Season
29:22 - Financial Goals and Identity
36:50 - Examining Budgets and Sinking Funds
42:53 - The Intersection of Frugality and Minimalism
49:37 - Prioritizing Value Based Spending
53:44 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or more with these 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-free investing with M1 Finance

462 | Pathfinders | JL Collins Nov 06, 2023

In this episode: the power of pursuit, FU money, index investing, investing the difference, and the simple path to wealth.

This week we are joined by the godfather of the FI movement himself JL Collins to discuss the themes of his new book "Pathfinders: Extraordinary Stories of People Like You on the Quest for Financial Independence―And How to Join Them." While there is no perfect blueprint to mastering your money, there can be confidence and motivation to be found in the stories of others who have been in your position regardless of what part of the path to FI you are on! Though this journey requires you to have to take action and make necessary financial changes, it is never about complexity and deprivation. But rather, this journey is about recognizing the freedoms gained while pursuing FI, not just when you reach your FI goal! The moment you begin to simplify your path to wealth, you will find yourself becoming a stronger and happier individual!

JL Collins:

Check Out JL's New Book "Pathfinders: Extraordinary Stories of People Like You on the Quest for Financial Independence―And How to Join Them"
Website: jlcollinsnh.com
Other Book: "The Simple Path to Wealth: Your road map to financial independence and a rich, free life"

Timestamps:

1:25 - Introduction
4:27 - The Power Of Pursuit And FI
13:48 - Buying Your Freedom
22:34 - There's No Secret To Money
30:35 - The Power Of Index Investing
43:29 - Spend Less, Avoid Debt, And Invest The Difference
51:27 - Following The Simple Path To Wealth
56:26 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or more with these 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-free investing with M1 Finance

461 | Taking Space for Yourself and Community | October Roundup Oct 30, 2023

In this episode: community, building fun into your life, college planning, fear, following threads, and travel rewards.

This week we are rejoined by Ginger for another installment of the Round-Up, where we catch up and discuss our favorite takeaways from this past month’s episodes. From learning how to best prepare your child for the college application process, to the importance of introspection to pinpoint and work with your fears, and finally to re-framing your fearing relationship with money. It’s been a great month with content full of information that all listeners can relate to, no matter what part of the FI journey they are in!

Timestamps:

0:37 - Introduction
3:23 - Community
12:45 - Building Fun Into Your Life
17:51 - Usage Of Travel Rewards
29:51 - College Planning
37:18 - Following the Threads, Fear, And Money
49:32 - Retirement Investing/The Mailbag
57:00 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

460 | Preparing for the Cost of College | Brian Eufinger Oct 23, 2023

In this episode: financial aid, college planning, standardized tests, tests optional, need meeting, and preparation.

This week we are re-joined by Brian Eufinger to discuss ways to best prepare your children for college admissions, navigating the new changes to FAFSA and the CSS profile, and how you can maximize when prepping for your child’s higher education. While college prep can be stressful for students, from maintaining their GPA to taking multiple standardized tests, it can be just as stressful for parents to figure out financial aid and how to best set up their child for success before and after graduation. However, knowing the factors to consider early on and having the knowledge in advance can make this process far less daunting! While stressful as it may be, remember that there are many different resources available to you and your child that give you the knowledge that may alleviate the pressures that come with college prep and financial aid!

Brian Eufinger:

Free diagnostic mock SAT and ACT tests (each weekend): www.edisonprep.com/mocks/
Free information sessions on college admissions (6-7x / year, including one on 11/14 @ 7pm EST): www.edisonprep.com/infosession/
How to self-prep for the SAT/ACT: www.gettestbright.com/self-prep-for-the-sat-act/
Edison Prep Bios: www.edisonprep.com/bio/

Timestamps:

1:06 - Introduction
4:53 - The Impact of Merit Aid
11:49 - When, Where, and How to Think About Standardized Tests
18:33 - The Intersection of The School, Price, Opportunity, and Comfort
25:20 - Standardized Tests and The Reality of Preparation
31:08 - Tests (Not) Optional
37:32 - Governmental Forms and Financial Aid
46:43 - The Variance of Need Meeting and Aid Changes
51:13 - Preparation and Knowledge With College Planning
55:23 - Non-Academic Path to Savings
58:14 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

459 | Follow the Thread | Cory Muscara Oct 16, 2023

In this episode: spiritual bypassing, curiosity, fear, wellbeing, inflection points, and what the body stores.

This we are re-joined by Cory Muscara to discuss the benefits of practicing mindfulness while embarking on the FI journey, the concept of spiritual bypassing, and the positive benefits that come from being present. An important part of the FI journey is learning to take actionable steps to better your life, and a large part of this requires introspection and honest reflection of where you are in your life. Through the practice of meditation and setting intentions, it may allow you to recognize patterns that harm you or keep you from enjoying life in the present. While working through triggers or anxieties can be uncomfortable, mindful practices can be the vehicle to move you from discomfort to a place of control and confidence in your life. So while you may be putting all your mental energy into reaching your FI goal, remember that getting to the finish line is not what this journey is about, but rather the positive effects and changes that come from taking control of your life and being present!

Cory Muscara:

To join Cory's daily text list text "choosefi" to 631-305-2874
Website: Practicing Human
Book: "Stop Missing Your Life: How to be Deeply Present in an Un-Present World"
Instagram: @corymuscara

Timestamps:

1:56 - Introduction
2:34 - The Cost of Relocation
6:28 - The Danger Of Spiritual Bypassing Through FI
16:52 - Curiosity and Fear
27:22 - What The Body Stores
33:18 - Money and Well-being/Inflection Points
40:46 - Taking Control and Following The Thread
48:12 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

458 | A Healthy State of Panic | Farnoosh Torabi Oct 09, 2023

In this episode: fear, anxiety, FOMO, talking about money, endings, self development, exposure, and the fear of loneliness.

This week we are joined by Farnoosh Tarabi where we will be discussing the topic of fear and anxiety, reinterpreting FOMO, and how to recognize and use your fears and anxieties to work with you in order to reach your financial goals. While we can sometimes interpret our own fear as a weakness, many times these fears and anxieties can be a secret weapon, ones that motivate us and usher in necessary change that can make a difference in the path that we are on. In some cases, it can be a fear of missing out on opportunities. Other times it can be a fear of endings. But no matter the fears, learning to recognize the underlying feelings and meanings can ultimately help you on the path to FI! Remember, an important part of this journey requires introspection, and while it may be uncomfortable to sit with your fears and anxieties, working with them, rather than against them may just be the superpower you didn’t know you had.

Farnoosh Torabi:

Check out Farnoosh's new book "A Healthy State of Panic! Follow Your Fears to Build Wealth, Crush Your Career, and Win at Life"

Timestamps:

2:12 - Introduction
3:24 - The Other Side of Anxiety's Coin
8:23 - Fear and Finance/Talking About Money
16:41 - The Fear of Rejection
25:22 - The Fear of Missing Out/The Fear of Loneliness
39:33 - The Fear of Exposure
45:29 - The Fear of Endings
50:03 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

457 | Mailbag: Cover Your Expenses | Rachael Camp Oct 02, 2023

In this episode: the 4% rule, second generation FI, retirement saving, 529's, 401k's, and is it too late for FI?

This week we joined by Rachael Camp of Camp Wealth for another installment of Mail Bag, where we will be answering some questions sent in by our listeners. Together, we cover topics surrounding the 4 percent rule, starting the FI journey “late”, the importance of tax diversity in your retirement accounts, and the potential benefits and drawbacks to 529 plans. On the path to FI, the community this journey brings can be the best resource, and answering any questions you may have is our way to ensure you’re well on your way to FI, as well as help others in the community who may be navigating similar scenarios!

Rachael Camp:

Website: rachaelcampwealth.com
Twitter: @camp_wealth

Please note:

Rachael Camp offers advisory Services through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer, Member FINRA & SIPC, 2704 S. Goyer Rd., Kokomo, IN 46902. 765-453-9600. Camp Wealth is not affiliated with the CFD companies.

Timestamps:

1:09 - Introduction
3:22 - Can It Be Too Late For FI?/Credit Card Debt
18:25 - The 4% Rule And Early Retirement
27:02 - Withdrawing Earnings
40:06 - Not Maxing Out Your 401k?
50:03 - 529's and Financial Aid
57:04 - Second Generation FI
72:10 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

456 | Taking a Step to FI | September Roundup with Ginger Sep 25, 2023

In this episode: the importance of starting, everything is negotiable, talentstacking, building your flywheel, and Ginger!

As September comes to a close, it’s once again time for another Roundup episode! This week we are rejoined by Ginger, where we will be revisiting the topics of our September episodes and discussing our favorite takeaways and the talking points that stood out to us. From the importance of perseverance on your path to FI and embracing the community this journey brings, and negotiating salary with confidence, to finally skill stacking and the teaching opportunities it may bring for you and others! So lets look back on what FI can look like from the different points of view of our past month’s guests, and move into October better informed and better prepared!

Timestamps:

0:35 - Introduction
2:02 - Taxes And After-Tax Brokerage Accounts
9:55 - The Importance Of Starting/Community
19:52 - Decision Making Strategy/Focusing On The Future
23:53 - Everything Is Negotiable/Being Prepared And Doing the Work
31:31 - Talentstacking And Building Your Flywheel
36:14 - What Your Money Can Do For You
41:55 - Reviews And Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

455 | Creating Your Entrepreneurial Flywheel | Nathan Barry Sep 18, 2023

In this episode: it's not easy it's simple, the flywheel, being consistent, skilling up, the gift of time, and what money can provide.

This week we are joined by founder and creator of ConvertKit, Nathan Barry to discuss his entrepreneurial journey and how the fundamentals of FI helped drive him to create and build a successful business. We often discuss the importance of skill stacking when on the journey to FI, but we sometimes forget to touch on the trial and error that comes with learning and creating something new for yourself. While you can’t expect to start something new and be faced with little to no challenges, this leaves more opportunities for personal growth and important lessons! So whether it’s learning a new side hustle or starting a business, it’s important to remember that you may not always know how to do something perfect when you begin. You should not count yourself out or give up when you don’t see instant results, but rather reach out to new communities and take the lessons in stride! Though it takes time and effort, it’s worth it!

Nathan Barry:

Website/Newsletter: nathanbarry.com
Twitter: @nathanbarry
Business: convertkit.com

Timestamps:

1:23 - Introduction
3:24 - Nathan and FI
15:56 - Not Burning the Boats
22:26 - It's Not Easy, But it's Simple/Unique Messengers
33:00 - Being Consistent, Showing Up, and Skilling Up
44:22 - The Flywheel
58:01 - What Money Can Provide/The Gift of Time
70:16 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

454 | Salary Negotiation & Early Retirement | Financial Mechanic Sep 11, 2023

In this episode: salary negotiation, knowing your worth, doing your own research, anchoring, and facing job offers.

We often talk about the importance of shifting out of a scarcity mindset towards an abundant one, and this can mean leaving a job for a new one, or even asking for a higher wage. But how do you overcome the guilty feelings that can arise when wanting to level up? This week we are re-joined by the Financial Mechanic to discuss the art and steps to successful salary negotiating, from doing your research to collaboratively working with hiring managers, and learning to handle the discomfort and self doubt that can come when asking for more. While negotiating can make you feel uncomfortable or even intimidated, it’s important to remind yourself that asking for what you want does not mean you are begging. Rather, it means you know your worth and are advocating for yourself and your future! Though it takes practice, learning how to confidently negotiate can make a difference in your present but make all the difference in your future and your FI goals!

Financial Mechanic:

Website: financialmechanic.com
Twitter: @fimechanic

Timestamps:

1:05 - Introduction
5:21 - The Win-Win of Salary Negotiation
14:40 - Delay Talking About Salary
18:42 - Doing Your Research
25:33 - Knowing Your Worth
29:21 - The Negotiation
36:44 - Negotiation is About More Than Salary
41:10 - Accepting, Rejecting, and Making Your Decision
44:49 - Updates From The Financial Mechanic
53:25 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

453 | From Food Stamps to FI | Theresa Sep 04, 2023

In this episode: the importance of community, finding financial literacy, pulling the levers of FI, and the hot seat.

We’ve heard incredible stories of FI from many of our listeners, but this week we are lucky to hear from someone who overcame so much in order to achieve the life she always wanted. This week we are joined by one of our listeners Teresa, where we discuss her incredible story of navigating and overcoming debt as a single mother to building a strong foundation of financial literacy and knowledge for herself and her daughters! Some of us on the path to FI may not have grown up surrounded by great financial models, and maybe some of our listeners may feel overwhelmed with the new tips and knowledge that FI brings, but please remember that feeling unprepared is no reason to count yourself out on this journey! Your past failures or mistakes shouldn’t hold you back from building the life you want and the life you deserve, but rather they should motivate you to learn and grow into the best future version of yourself!

Timestamps:

1:06 - Introduction
2:52 - Theresa's Story
9:02 - Awakening
16:31 - Finding Financial Literacy and What Came With It
22:22 - The Importance of Community
31:36 - You've Recovered Financially, Now What?
39:43 - Pulling The Levers of FI
49:02 - The Opportunity FI Provides
55:37 - Theresa Takes The Hot Seat
64:41 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and FI Resources:

Earn $1,050 or More With These 3 Cash Back Cards
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Find a new side hustle with one of our Educational Courses
Commission-Free Investing with M1 Finance

452 | This is Not a Dress Rehearsal | August Roundup with Katie Aug 28, 2023

In this episode: spending for value, mastering your finances, what nourishes you, limiting beliefs, and getting the best out of yourself.

The end of August is rapidly approaching which means it is time for another round-up episode. To close out the month this time we are joined by Katie Gatti from "Money with Katie" to discuss all the lessons we picked up from the last month of ChooseFI! Whether it's planning a mini-retirement, designing what your want your life to look like, or forming your identity statements, our wonderful August guests have provided some amazing blueprints for you to start becoming the best version of yourself. So now that the summer is ending, it seems like a great time to take action on what we have learned together!

Katie Gatti:

Website: moneywithkatie.com
Podcast: The Money With Katie Show

Timestamps:

1:11 - Introduction
4:34 - Spending For What You Value
9:59 - Getting The Best Out Of Yourself
14:26 - Claiming The Life You Want
24:59 - Mastering Your Financials First
33:20 - Limiting Beliefs
44:48 - It's Not Too Late To Start/What Nourishes You?
50:42 - Identity Statements
54:38 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Keep learning or start a new side hustle with one of our educational courses
Commission-Free Investing with M1 Finance

451 | Mini-Retirements to Accelerate Your Path to FI | Jillian Johnsrud Aug 21, 2023

In this episode: mini-retirements, building fun into your life, structuring and planning mini-retirements, negotiating, and gaining momentum.

When pursuing your FI goal, it can feel like you are on a set trajectory, and picking up new habits or hobbies can seem overwhelming because you don’t have the time to focus on them. However, you should never feel held back from starting something new! This week we are joined by Jillian Johnsrud to define and discuss the mini-retirement strategy, and how taking a break to recover, relax, and re-strategize can propel you towards your FI goals! Sometimes the thought of taking a break can seem scary, or even the thought of relaxing can be more stressful than it's meant to be. But, taking the time and space away from your usual structure can allow you the space and bandwidth to pursue other avenues that you are passionate about! While the thought of a mini-retirement can leave you feeling unstructured from your usual 9-5, it can usher in more time for hobbies, side hustles, or even new jobs! So, while your journey to FI may be filled with rules and guidelines set in place to help you reach your FI goal, remember that there is no harm in taking an active rest in order to restructure your goals and re-motivate you!

Jillian Johnsrud:

Website: jillianjohnsrud.com
Podcast: Everyday Courage
Book: "Fire the Haters: Finding Courage to Create Online in a Critical World"

Timestamps:

0:59 - Introduction
3:34 - Building Fun Into Your Life
12:25 - The Purpose of Mini-Retirements
19:35 - Structuring A Mini Retirement And Avoiding Mistakes
28:25 - Gaining Momentum In A Mini-Retirement
37:17 - Mini-Retirement Negotiation
45:55 - Planning A Mini-Retirement
50:42 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Keep learning or start a new side hustle with one of our educational courses
Commission-Free Investing with M1 Finance

450 | Catching up to FI | Becky Heptig & Bill Yount Aug 14, 2023

In this episode: changing your mindset, starting FI at 50, the pros and cons of starting late, and facing your faults.

We always say on this show that FI is for everyone, but our guests Becky Heptig and Bill Yount really embody this message. As hosts of the "Catching Up to FI" podcast, Becky and Bill are a fantastic resource for those who have found FI later in life and still would like to give it a go despite the delayed start! While FI looks different for everyone and can be influenced by when you start, we agree with Bill and Becky in saying becoming intentional with your finances is always a positive decision, no matter when you do it in life. Although your path may look different from those who started earlier, you would still be taking steps to better your life inside and around your finances. Perfection isn't the goal, improvement is what we strive for, and a positive step is still a step in the right direction!

Becky Heptig & Bill Yount:

Website: catchinguptofi.com
Podcast: Catching Up to FI
Facebook: Catching Up to FI Facebook Group

Timestamps:

1:10 - Introduction
4:29 - Changing Your Mindset and Facing Your Faults
14:32 - Taking Late Action
21:34 - Getting Stuck and Overcoming It
24:28 - Starting FI at 50
33:25 - Is It Ever Too Late To Start FI?
40:00 - The Pros and Cons of Starting Late
44:45 - The Growth of Those Catching Up to FI
48:22 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Keep learning or start a new side hustle with one of our educational courses
Commission-Free Investing with M1 Finance

449 | Rubber Ducks and Systems for Land Investing Aug 07, 2023

In this episode: determining your FI goals, real estate investing, land investing, liquidity, and proof of concept.

Whether you are new to FI or have achieved it, you have probably noticed a big change not only in how you live your life, but how you perceive yourself. You may be more intentional and strive to make changes in all areas of your life, not just financial ones. This week we are joined by our friend JT Olmstead to discuss the ins and outs of land investing, as well as talk about the importance of having the right mentality to accomplish your goals and become the best version of yourself. While on the journey to FI, you may feel momentum and motivation to keep pushing towards your FI number, but oftentimes the journey doesn’t end when you get to the finish line. A large part of this journey is learning from failures, changing your goals, and changing your plans as you change! Though your plans and goals may not always be accomplished the way you think, having the right mindset throughout this journey will be just as beneficial to you as having plans in place.

Timestamps:

0:56 - Introduction
5:20 - Determining Your FI Goals
11:34 - The Top End of Your Capabilities/The Skill Of Saying No
22:01 - Real Estate Investing
27:43 - Transitioning to Land Investing
32:16 - The Intersection of FI and Real Estate Investing
42:12 - Personal Proof of Concept/Land Investing
48:17 - Liquidity/Structuring Buying and Selling Systems
59:52 - Resources For Land Investing/Where to Start
62:59 - The Hot Seat
72:12 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Keep learning or start a new side hustle with one of our educational courses
Commission-Free Investing with M1 Finance

448 | July Roundup: Working Backwards Into FI Jul 31, 2023

As this month comes to a close, we think it’s only fitting to reflect on what July’s incredible guests have had to say, and what new knowledge and perspectives they’ve brought to the table. This week we are back with Ginger and introducing a more structured Round-Up, where we will be revisiting topics from this past month's episodes and discussing our favorite moments and takeaways. While the subjects of this month's episodes have varied from spending for happiness to understanding Roth conversions, there is still more to learn and unpack before moving onto August!

Timestamps:

1:44 - Introduction
2:17 - Listener Updates/Travel Rewards
7:08 - Spending for Happiness
18:35 - Saving Addiction
22:01 - The Fundamental Truths of Investing
31:12 - The Small and Mighty Real Estate Investor
41:11 - Roth Conversions/Breaking Up with Your Financial Advisor
49:50 - Purposefully Not Optimizing
55:58 - Conclusion

Resources Mentioned In Today’s Episode:

The Invisible Nature of Spending | Ginger Roundup | ChooseFI Ep 443
ChooseFI’s Top 10 Recommended Travel Rewards Cards
Spending for Happiness | Carl Jensen & Doug Cunnington | ChooseFI Ep 444
Cometeer
Fundamental Truths of Investing | Brian Feroldi | ChooseFI Ep 445
Small and Mighty Real Estate Investor | Chad Carson | ChooseFI Ep 446
Nick Magguilli Return on Hassle
Mailbag: Breaking up with your Advisor, I Bonds, 4% Rule, Accounts for Kids, Roth IRAs | Sean Mullaney | Ep 447
FI is Fun

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Keep learning or start a new side hustle with one of our educational courses
Commission-Free Investing with M1 Finance

447 | Mailbag: Breaking up with your Advisor, I Bonds, 4% Rule, Accounts for Kids, Roth IRAs | Sean Mullaney Jul 24, 2023

In this episode: financial advisor breakups, I bonds, the 4% rule, second generation FI, Roth IRAs, and the listener mailbag.

Breakups are hard, but breaking up with financial advisor can be harder given the minutia that is often involved in doing so. It's good to have friends to lean on in times like this, which is exactly why we have the FI Tax Guy himself Sean Mullaney with us to help! Listen along as he and Brad dip back into the listener mailbag this week and discuss a plethora of topics submitted by YOU the listener!

Sean Mullaney:

Website: fitaxguy.com
Sean's Roth IRA Blog Post: How I Learned To Stop Worrying About The Roth IRA 5 Year Rules

Timestamps:

0:43 - Introduction/Breaking Up With Your Financial Advisor
15:13 - The Taxable Nature of Financial Breakups
22:11 - I Bonds
29:12 - The 4% Rule and Age
35:40 - Second Generation FI and Accounts
43:48 - Early Roth IRA Conversions
48:18 - Roth IRA's and 5 Year Rules
57:24 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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446 | Small and Mighty Real Estate Investor | Chad Carson Jul 17, 2023

In this episode: designing your life, real estate investing, pain points, working backward, and finding your sweet spot.

This week we are rejoined by friend of the podcast Chad Carson to discuss his new book "The Small and Mighty Real Estate Investor: How to Reach Financial Freedom with Fewer Rental Properties," as well as cover some strategies he’s picked up during his real estate investing journey. While investing in real estate can be a full time job, for many listeners it can also be seen as a way to generate additional income. Although getting started can seem a little daunting, Chad offers excellent insights on how to confidently begin real estate investing and stay motivated towards having your investments align with your personal goals and desired life!

Chad Carson:

Get 10% off Chad's book coming out on July 20th, "The Small and Mighty Real Estate Investor: How to Reach Financial Freedom with Fewer Rental Properties," with the promo-code "choosefi"

Timestamps:

1:02 - Introduction
4:34 - Designing Your Life
14:36 - Walkability and Location
23:39 - Buying Around Pain Points
28:08 - Working Backwards for Solutions
34:55 - Transition From Buying to Paying Off
43:52 - Working In Your Sweet Spot
52:02 - What You Can't Outsource
57:10 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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445 | Fundamental Truths of Investing | Brian Feroldi Jul 10, 2023

In this episode: investing, losing money hurts, pessimism, optimism, index funds, psychology, history, and building wealth.

Whether you're a confident investor or weary of playing the market, there is still a lot to be learned when it comes to your investments. This week we are re-joined by friend of the podcast Brian Feroldi to discuss important truths and takeaways he’s learned as a decades-long investor, from navigating the psychology and history of the market, to focusing on longevity and simplicity rather than getting rich quick. When listening to this episode, remember that playing the market doesn’t have to be a complicated game, and no one should feel un-equipped to invest! Just be sure to understand that investing will never be a perfect journey, and preparing yourself for low points may help you make better decisions in the long run!

Brian Feroldi:

Website: brianferoldi.com
Twitter: @brianferoldi
Book: “Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren’t” By Brian Feroldi

Timestamps:

0:41 - Introduction
4:27 - You Will Be Wrong
9:45 - Losing Money HURTS
12:54 - Humans Are Naturally Bad Investors
16:09 - Pessimism And Optimism
20:22 - The Power Of Index Funds
22:31 - The Power Of History And Psychology
24:45 - Avoiding Ruin Is A Skill
28:56 - Keeping It Simple
35:24 - To Build Wealth, You Need To Invest
37:50 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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444 | Spending for Happiness | Carl Jensen & Doug Cunnington Jul 03, 2023

In this episode: the phases of FI, your spending framework, dying with zero, changing your anchor points, and the value of time.

This podcast offers insight to what the path to FI can look like for listeners, and while we usually speak broadly to our listeners who are all at different stages of FI, it’s important to look back, as well as look forward to see how this journey has changed for us. This week we are joined by Carl Jensen and Doug Cunnington of Mile High FI to talk about the evolution of the FI movement from when we all began this journey, as well as reflect and discuss the trends and important takeaways of where we see the FI movement going. While finding your own balance is important in all parts of life, finding balance while on the FI journey is just as important! Learning to become intentional with your spending is also important. It can be extremely beneficial to your life to learn healthier ways to spend rather than deprive yourself of some of the most important items or experiences that bring you joy! So remember, whether you are at the beginning or well on your way towards reaching your FI goal, you will evolve with FI over time and application, just as FI will evolve around you!

Mile High FI:

Website: milehighfi.com
Podcast: Mile High FI
Newsletter: Join The Mile High FI Club

Timestamps:

1:25 – Introduction
4:41 – The Phases of FI
11:18 – Building Your Life-Spending Framework
18:31 – What’s Worth Spending On
26:16 – Re-Evaluating Anchor Points
33:43 – The Value of Saving Time
42:22 – Dying With Zero
51:02 – Why Wait For Death To Help Your Loved Ones Fiscally?
56:32 – Buying A Concert
59:30 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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443 | The Invisible Nature of Spending | Ginger Roundup Jun 26, 2023

In this episode: travel rewards, credit cards, the true cost of buying a car, health, retirement, and community wins.

This week we are re-joined by Ginger for another Round-Up episode where we will briefly discuss travel rewards, updates on Ginger’s credit card journey, the value of implementing new habits, and also dip into the listener mailbag! Over the course of this podcast we often discuss the importance of taking action and making changes in your life to not only achieve FI but also improve your life overall. While we know changes don’t happen overnight, (just as no one can reach their FI goal overnight) it’s important to remember that sometimes the best thing you can do is take action little by little. Sometimes this means budgeting, and other times it can mean breaking free from an unhealthy frugal mindset in order improve your quality of life! Whatever the changes you wish to make or habits you want to create are, remember it's never too late to begin!

Timestamps:

0:10 - Introduction
0:29 - Travel Rewards
6:52 - Global Entry/Credit Cards
16:30 - The True Cost Of Buying A Car
25:49 - Health, Fitness, and Habits
39:44 - Pensions and Retirement Numbers
48:22 - Community Wins
54:34 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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442 | Intermediate Travel Rewards Jun 19, 2023

In this episode: the travelers triangle, booking early, flexibility, planning, hotels, and knowing you are getting a deal.

This week Suzy joins us for a new installment of travel rewards tips, where we will be diving deeper into how you can optimize your savings and travel points to get the most out of your travels. While the subject matter we are tackling today may be more useful to listeners who have already acquired the necessary credit cards and travel points, there is still a lot of helpful information you can use when planning your next trip! So whether that's learning to book early and play around with the sites mentioned on today's episode, or allowing flexibility to mitigate the stress of traveling, this episode is here to act as an additional resource to those learning to take advantage of what their travel points can offer.

Timestamps:

1:24 - Introduction
6:09 - The Travelers Triangle
12:31 - Booking Ahead Of Time
23:28 - Tools For Travel Rewards
33:14 - Flexibility And Planning
45:10 - FI Booking Processes
57:57 - Taxes,Fees, And Knowing Your Getting A Deal
64:06 - Hotels
70:45 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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441 | The Valuist Returns | FI Roundup with Bo Loy Jun 12, 2023

In this episode: the continuum of FI, skilling up, chasing true value, the power of connection, and second generation FI.

This week we are rejoined by friend of the podcast Bo Loy to talk about finding value on the FI journey, drowning out the "noise," and the importance of not depriving yourself of happiness in order to reach your FI goal. While the journey to FI does require you to make financial changes and pick up new habits that can launch you towards financial independence, the purpose of this journey is never to deprive or restrict yourself in order to reach your goal. No matter when you begin this journey, the goal in mind should be taking steps in order to improve your life both financially AND mentally. Not sacrificing the things that bring value to it! There's a lot to learn on the path to FI, but it’s important to remember that what you are working towards is more than just a number, it's personal happiness, fulfillment, and more!

Timestamps:

0:58 - Introduction
4:37 - The Continuum of FI
11:51 - Skilling Up
15:44 - Life Updates
25:59 - Chasing True Value
34:55 - Meeting Your kids Where Their Interests Lie
41:17 - The Power of Connection
48:20 - Just Going For It
52:24 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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440 | Past Failure Does Not Define Future Success | Amy Minkley Jun 05, 2023

In this episode: money against mindset, fear setting, FI events, gap years, slow travel, and living intentionally.

Everyone’s relationship with money is different, just as everyones path to FI looks different, but how do you unlearn behaviors that could be holding you back? This week we are joined by Amy Minkley to discuss how finding FI changed her life while abroad, as well as the the importance of unlearning and breaking free of internalized stress when it comes to money. A large part of the FI journey is implementing new habits and the lessons you pick up along the way. However, an even larger and sometimes harder part of this journey requires you to be introspective and take an honest look at your relationship with money. While you can’t go back and change the past, the beauty of FI is that you learn to make changes to ensure the future you want! No matter what your background, the path to FI is one that benefits everyone, because it not only gives you control of your life, but allows for independence to create the future you desire. So while it may feel comfortable to approach this journey by thinking of all the ways things can go wrong, remember to think of all the ways things can go right!

Amy Minkley:

Website: fifreedomretreats.com
Mailing List: Get In Touch With Amy Here!

Timestamps:

1:01 - Introduction
4:29 - How Amy Found FI
8:47 - Money Against Mindset
16:24 - Making The Tough But Right Choices For You
22:18 - International Teaching
27:43 - Fear Setting
36:20 - Living Intentionally
42:25 - FI Events
46:56 - Gap Years And Slow Travel
52:19 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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439 | Adjusting to Life After FI (Before You Get There) | Chris Terrell May 29, 2023

In this episode: success after FI, finding purpose, owning your time, investing in health, and spiritual pursuits.

While reaching your FI number and subsequently retiring is an amazing achievement in itself, what are you supposed to do with yourself after getting there? Well, figuring that out is also a big step you are going to have to take on your FI journey. This week, we are once again joined by Chris Terrell to discuss the ways you can fill your time after achieving FI, and how to identify what gives you purpose in your post-work life. Earning back your time is only half the battle, putting that time to good use is up to you and you only!

Timestamps:

1:20 – Introduction
3:02 – Success After FI
9:01 – What Do You Want To Do In Retirement?
16:06 – Finding Purpose
22:02 – Prioritizing Important Relationships
27:46 – The Benefits Of Owning Your Time
31:28 – Investing In Your Health
41:24 – Spiritual Pursuits and Volunteer Work
47:09 – Unstructured Time, Calendar Tyranny, and Work?
56:59 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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438 | Dollars and Sense | Clint Murphy & Ginger May 22, 2023

In this episode: the pain of paying, anchoring, relative value, sunk costs, response to stimulus, and opportunity cost.

On this installment of the Book Club, we are joined by Clint Murphy and Ginger to discuss some of our favorite takeaways from Dan Ariely and Jeff Kreisler's "Dollars and Sense: How We Misthink Money and How to Spend Smarter," We often mention on this podcast the importance of actionable steps you must be willing to take while on the journey to FI, and this book is chalk-full of actionable tips and examples that could possibly be applied to many areas of your life, not just personal finance. While we know that personal finance is not unilateral and there are no correct steps and decisions that ensure success for everyone, we believe this book can help you better understand the decision making processes that goes into taking actionable steps on your FI journey!

Book Club Selection:

"Dollars and Sense: How We Misthink Money and How to Spend Smarter" by Dan Ariely and Jeff Kreisler

Timestamps:

1:21 - Introduction
4:20 - Reducing The Pain Of Paying
11:42 - Anchoring
19:01 - Opportunity Cost and Saying No
25:40 - Relative Value
30:20 - Why We Don't Understand Fairness and Value
38:49 - Sunk Costs
46:31 - Overvaluing What Your Already Have
50:07 - Spreading The Gap Between Stimulus and Response
57:21 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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437 | Student Loan Forgiveness: Essential Update | Travis Hornsby May 15, 2023

This week we are re-joined by friend of the podcast, Travis Hornsby, to discuss some critical updates and deadlines pertaining to student loan forgiveness.

While the thought of paying off student loans can feel daunting, there may actually be some ways to mitigate the stress entirely! Though this episode may not pertain to your situation specifically, we believe it can act as a resource for some you may know, or others on this journey who are looking to potentially have their loans forgiven.

Travis Hornsby:

Website: StudentLoanPlanner.com (link to discounted consult)

Timestamps:

1:14 - Introduction/Where Are We Today?
9:45 - Irreversible Decisions
11:55 - The PSLF and IDR Waiver
17:34 - $300 vs $1500 a month
23:30 - Searching and Patience, What Are The Action Steps?
31:33 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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436 | From Vision Board to Action: A FI Success Story | Rakesh May 08, 2023

In this episode: getting comfortable investing, the vision boards, salary negotiations, and the skill of spending

Whether it's wanting to pay off your debts or get yourself set up for your future, there are many motivations for wanting to begin the path towards FI. This week we are joined by listener and fan of the podcast Rakesh to discuss how his journey to FI has been over the last 3 years, and the lessons he’s learned along the way. We often stress on the podcast the importance of bold moves and taking action as an important step to achieving FI, and Rakesh is the embodiment of just that! Everyone on this journey starts from a different place, just as everyone’s long term goals differ, but don’t allow yourself to be bogged down by the little hiccups that come with this journey. By pushing ahead and being mindful of your short and long term goals, you may find yourself stepping out of your comfort zone towards the life you want to be living!

Timestamps:

1:15 - Introduction
4:50 - The Evolution Of The FI Journey
12:52 - Getting Comfortable Investing
22:09 - The Vision Board
30:39 - The Skill Of Spending And Future Planning
37:13 - Low Cost Of Living Areas
43:05 - Salary Negotiating And Job Transitioning
53:11 - The Impact Of Staying Put
56:06 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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435 | Tipped Finance | Barbara Sloan May 01, 2023

Oftentimes on our show, we talk to people on the FI journey with “regular” 9-5 jobs, and other times we talk to those who have achieved their FI goal and are able to retire from their careers. However, we rarely talk about money management and FI when it comes to those working in service industries, such as serving and bartending. This week we are joined by author Barbara Sloan to discuss taking control of your finances while in a variable income job, the importance of an emergency fund, and the attainability of retirement accounts and health insurance while in these types of industries. While it may seem unattainable to budget and financially plan for the long term when your income is non-fixed, you shouldn’t count yourself out from this journey! Creating your dream life is possible for all, with the right systems in place to ensure it, that is an option possible for those in all career types.

Barbara Sloan:

Timestamps:

1:03 - Introduction
2:54 - Sub Minimum Wage And Tipping
14:03 - The Importance Of Tracking
21:06 - Tips, Taxes, and Social Security
35:28 - Strategies For Health Insurance
41:18 - Lifestyle Design/The Financial System
48:44 - Emergency Funds
54:27 - Conclusion

Resources Mentioned In Today’s Episode:

Subscribe to The FI Weekly!

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434 | The Transtheoretical Model of Change | Roundup with Ginger Apr 24, 2023

There can be points on the journey to FI where you feel that you may not be able to accomplish your goals, or even take advantage of some of the hacks we talk about on the show. But sometimes all it requires is for you not to limit yourself and just think outside the box. This week we are re-joined by friend of the podcast Ginger to discuss how the transtheoretical model of change can apply to those on the path to FI, as well as read your emails and answer some of your questions on this installment of Round-Up. Oftentimes, we forget how flexible and capable of change we really are, and its life's curveballs that make this journey different for everyone. While setbacks can put you off from pursuing your goals, or make you feel as if you don’t belong on this path, they shouldn’t deter you from attacking your goals. When you can accept that changing and adapting does not equal failure, you not only open yourself up to new options and possibilities, but exceed your own expectations while on the path to FI!

Timestamps:

0:48 - Introduction/Economy Conference
9:43 - Travel Wins
21:23 - Ancillary Travel Rewards Benefits
26:20 - Bold Move Update And The Transtheoretical Model of Change
40:58 - Determining Your FI Number
51:22 - The FI Pre-College Approach
58:11 - Savings Account Interest Rates And Community Win
63:11 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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433 | Outside 365 Apr 17, 2023

In this episode: the power of outside, overcoming adversity, the value of streaks, building momentum, and van life.

As we’ve discussed many times on our show, creating and maintaining habits are an important part of the FI journey. Not only does it require you to prioritize what you value, but it can lead to success in many areas of your life. However, while we talk about the success that habits can lead to, sometimes we overlook that starting a habit can be stressful or overwhelming. This week we are joined by Gregg from Outside365 to discuss what your life can look like when you align with your habits, and the momentum and value that can be found when you start to prioritize your habits a little bit each day. While it may seem overwhelming at times to start something new, whether it’s saving more and spending less, or even just picking up a new hobby, you may find that the more you do it, the easier it comes! Remember, while you may feel a sense of urgency to instill habits in your life, remember to be patient, and take it a day at a time!

Outside 365

Website: outside365.blog

Timestamps:

1:13 – Introduction
7:51 – The Power of Outside
12:53 – Overcoming Adversity
17:02 – Building Momentum
22:46 – Truly Being In Nature
28:52 – Plausible Outside Experiences
33:25 – The Value of Streaks
37:20 – Van Life
47:37 – Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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432 | The Skill of Spending | Mr. Money Mustache Apr 10, 2023

In this episode: tackling the big issues, the everywhere effect, change and discomfort, and getting the most from what you have.

On this Podcast in recent months, we have made a point to highlight the fact that FI isn't about deprivation. While we do think making a few cuts in some areas is a good thing, we believe in that idea because it acts as a means to an end, with the endpoint being living the most fulfilling life available to you. So how is it possible deprive ourselves in a manner that doesn't leave us feeling deprived? Well, we have to skill up out our spending abilities.! This week we have Mr. Money Mustache on the podcast to discuss the skill of spending and how to approach utilizing your resources to ensure your own happiness and wellbeing. Make cuts in your life where there us a lack of purpose so you can level up areas of importance and passion!

Mr. Money Mustache:

Website: mrmoneymustache.com

Timestamps:

0:51 - Introdcution
4:15 - The Power Of Spending With Less Income
9:24 - Tackling The Big Issues First
17:06 - Change and Discomfort
19:55 - The Everywhere Effect
28:06 - The Power Of Community
31:45 - Getting The Most From What You Have
40:23 - Cost VS Comfort, Wheres The Line?
45:34 - Early Cutting Is Essential
50:53 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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431 | Evolution of FI | Mad Fientist Apr 03, 2023

In this episode: forming habits, fulfilling goals, routines, the importance of health, restriction without deprivation, and working on life.

While beginning your FI journey means having goals and taking necessary steps to achieve them, it may seem like you have to approach your life with discipline and absolute structure when it comes to money matters. While setting yourself up for success on this journey does mean creating different habits in regards to spending or investing, these habits should never seem absolute or deprive you from enjoying your life. This week we are joined by the Mad Fi-entist to discuss the evolution and the necessary changes he has made while on the journey to FI, and the beauty found with having a routine and creating meaningful habits. FI is a journey that requires you to experiment and change as the journey progresses. Not only will you learn about yourself on this journey, but you will pick up and exchange old habits for new ones that better suit the life you want to be living. Remember that while discipline is necessary for this journey, that does not mean you can’t evolve and change up your routine for the better!

The Mad Fientist:

Website: madfientist.com
Podcast: Financial Independence Podcast
Album: Find The Album Here!
Twitter: @madfientist

Timestamps:

0:57 - Introduction
3:25 - Fulfilling Goals And Forming Habits
10:16 - Routine
15:25 - The Importance of Health
23:01 - The Evolution Of FI For Us
31:34 - The Skill Of Spending
40:15 - Working On Life
52:17 - Restriction Without Total Deprivation
61:35 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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430 | Mindset, Financial Independence, and Real Estate | The FI Couple Mar 27, 2023

In this episode: early financial conversations, what you truly value, house hacking, and the psychology of FI.

It can be scary to have to acknowledge the reality of your financial situation, especially if you feel you do not have the financial literacy to proceed with confidence. However, setbacks and failures can often be blessings in disguise. This week we are joined by The FI Couple to discuss the importance of perseverance and flexibility in the face of uncertainty, as well as the strength that can come from a united front. The journey to FI is deeply nuanced, and never perfect. While you may find yourself wanting to make your journey as optimal and expedited as you can, we know that life sometimes happens and your journey can be far from perfect. However, sometimes when we find ourselves at “rock bottom” and it seems like everything in our world is against us. Rather than feel defeated, allow the setbacks to act as momentum to charge ahead as you re-align and re-adjust!

The FI Couple:

Website: theficouple.com
Socials: @theficouple

Timestamps:

0:49 - Introduction/The Early Days
2:05 - Early Financial Conversations
11:03 - Discovering What You Truly Value
21:28 - Bouncing Back After A Layoff
26:06 - Entrepreneurship
30:10 - House Hacking
38:34 - The Off Market/Solving Problems
43:13 - The Single Family Home/The Psychology Of FI
48:29 - The Season Of Hustle
51:56 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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429 | FI Frugal Hobbies | Chris Terrell Mar 20, 2023

In this episode: finding your why, creating space, deprivation, board games, lesson learning, and decision making.

Whether you’re years into your FI journey or just beginning, evaluating your finances and spending, you may feel like you have to make some cuts into your favorite hobbies in order to reach your goal quicker. However, deprivation and cutting out the things that bring enjoyment into your life should never be the only option. This week we are joined by friend of the podcast Chris Terell to talk frugal hobbies, new experiences, and the parallels between strategies in board games and the strategies employed while on the journey to FI. While trying to optimize your experiences may mean changing hobbies and evolving, while doing so you may find new enjoyment, new communities, and values that come with these changes. Not everyone may have the same approach to a game, just as not everyone will have the same approach to achieving FI, but as long as you remember that being open to changes will allow you to not only optimize your experiences on that journey but optimize your FI.

Timestamps:

1:14 - Introduction
3:02 - FI And Pickleball
7:54 - Finding Your Why
12:50 - Happiness Is How You Fill Your Time
18:40 - It's Not About Deprivation
25:28 - Creating Space
35:46 - Strategy Board Games And Why They Are Great
45:54 - Strategy Boards Games, Decision Making, And Life
54:38 - The Top Four Concepts Of Strategy Board Games
72:58 - Starting Strategy Board Games
82:28 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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428 | Fees, Frugality, and 401K Fears Mar 13, 2023

In this episode: personal investments, 401k contributions, FI is for everyone, travel rewards, task management, and taxes.

On what is considered a very personal journey, how do you handle changes that feel like setbacks? Whether its spending more when you feel you should be saving, or re-evaluating goals based on what needs immediate attention, do you feel equipped to handle it with confidence? This week we are having a weekly roundup, and are re-joined by Ginger to not only answer listener’s questions, but discuss travel rewards, retirement accounts, and breaking away from the ultra frugal caricature often depicted alongside FI. While saving is an important factor on this journey, the main purpose of FI is to learn and live your life with intention as it relates to your money, goals, and values. Remember that it’s okay if some of your goals and values will change along the way! Allowing yourself to be flexible as it relates to external factors, like market volatility and your investments, will give you more power and control to continue ahead with confidence and optimism!

Timestamps:

1:04 - Introduction
3:31 - FI Is For Everyone
9:16 - Personal Investments
14:08 - Paying For Experiences
19:09 - An Introduction To FI
28:20 - Task Management
35:19 - Travel Rewards
47:06 - 401k Contribution Question
61:00 - Tax Season Hack
68:51 - The Content We Are Consuming
75:28 - Conclusion

Resources Mentioned In Today’s Episode:

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427 | Drawdown Strategies: Karsten vs. Fritz Mar 06, 2023

In this episode: the "average" withdrawal, Karsten's strategy, Fritz's strategy, fixed withdrawal rates, the bucket strategy, and refilling.

Preparing for retirement can look different for all on the journey to FI. All of our goals differ, but we are still in the mindset of positioning ourselves for the coming years. This week we are having a face-off between returning guests Karsten and Fritz, as they discuss their own receptive drawdown strategies, their advantages, and how you can best prepare yourself mentally and financially for your retirement. While a large part of preparing for retirement means saving, that does not mean you should be afraid to spend. Even in retirement, there are strategies that can allow you to not only spend comfortably within your means, but also spend confidently!

Fritz & Karsten:

Fritz's Website: theretirementmanifesto.com
Karsten's Website: earlyretirementnow.com

Timestamps:

1:35 - Introcution
2:09 - Karsten's Strategy
6:05 - Fritz's Strategy
13:28 - Fixed Withdrawal Rates
18:08 - Your Retirement Spending Mentality
23:01 - The Source Of The Bucket Strategy Debate
30:46 - Refilling The Buckets
40:40 - The Cheap Gimmick
45:13 - The Importance Of Rebalancing
51:03 - The Key Takeaways/The "Average" Withdrawal
59:06 - Conclusion

Resources Mentioned In Today’s Episode:

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426 | What to do with $2.5 Million & Real Estate Update | Scott Trench Feb 27, 2023

In this episode: the 2.5 million dollar inversion, looking at the incentives, interest rates, your biggest asset, and potshots.

When you begin your FI journey, you may feel like you must follow a certain path or plan in order to achieve your desired outcome. However, the longer you are this journey the more you realize that it is a personal one that requires adaptability when so many factors can affect your bottom line. This week we are back with Scott Trench from BiggerPockets as he shares his insights on investing and looking at your portfolio from an “outset” perspective, as well as touch on the shape of the real estate market. It is important to remember that there is a lot of push and pull on this journey, and it is not meant to be perfect. While you may have expectations for your portfolio and your long term plans, there will be times where you will have to make tradeoffs. Just as the markets change and may signal uncertainties to come, remember that flexibility while maintaining your long term goals will allow you to feel more equipped to move through these times.

Scott Trench:

Website: BiggerPockets
Podcast: The BiggerPockets Money Podcast
Instagram: @scott_trench

Timestamps:

0:57 - Introduction
2:05 - The 2.5 Million Dollar Inversion
8:52 - Always Look At The Incentives
12:49 - The Traditional Path To FI And PotShots
17:45 - Your Biggest Asset/Should You Be Inefficient?
25:52 - Executing The Concept
31:12 - The Impact Of Interest Rates Today
42:21 - The Commercial Impact
52:10 - Buying Properties With Cash
56:21 - Conclusion

Resources Mentioned In Today’s Episode:

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425 | Turning the Tables on Brad Feb 20, 2023

In this episode: the value of time, what are you optimizing for, bold moves, increasing your kid's odds for success, and balancing deprivation.

Because we have put so many leaders, members, and experts in our community on the hot seat here at ChooseFI, we figured it was finally time we played fair and put Brad on the hot seat himself! With the assistance of Aaron Lee, a longtime listener, friend, and host of "The Next Generation Leader Podcast," we ask Brad all the burning questions related to his FI journey. If you've ever been curious how Brad discovered FI, what led Brad to begin his FI journey, or what lessons Brad learned along the way, listen along as we re-live the path that helped form this amazing community!

Aaron Lee:

Website: newgenerationleader.com
Podcast: The New Generation Leader Podcast

Timestamps:

1:10 - Introduction
3:12 - The Value of Time
8:18 - Balancing Deprivation And The Burden Of FI
11:31 - Brad's Snowball Starter
16:13 - Brad's Childhood FI Vision
22:31 - What Are You Optimizing For?
28:45 - Helping Your Kids Increase Their Odds For Success
40:27 - All Of Us Are Working On Something
46:08 - Brads Bold Move Update
54:40 - What Else Fascinates Brad?
59:29 - Conclusion

Resources Mentioned In Today’s Episode:

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424 | The Power of FI | Deanna Feb 13, 2023

In this episode: budgeting, the power of FI, different funds, living in the present, and the power to make your choices.

No matter your background or the hardships you’ve endured, you should never rule yourself out for success! Ruminating over your past mistakes can make you feel undeserving of the life you want, but those same mistakes can actually serve as motivation to propel you further on your journey! This week we are joined by returning guest Deanna to discuss how her FI journey has progressed in the last 4 years, the freedom and power she gained from budgeting, and an update on her journey of overcoming adversity. Just because you feel you’ve hit a rock bottom doesn’t mean this journey isn’t for you. A large part of FI is making mistakes, learning, and changing. An even larger part of this journey is learning to forgive yourself and others and continue on! For those who do not think they are capable of achieving FI because of their past, let Deanna and this episode serve as an example of what this journey can look like when you act with forgiveness and intentionality!

Timestamps:

1:35 - Introduction
2:16 - Deanna's Backstory
6:26 - Dave Ramsey and Budgeting
14:16 - The Emergency Fund
17:30 - Different Funds For Different Things
23:35 - The Power of FI
27:12 - It's Not All Unicorns And Rainbows
30:28 - Broken Vessels Made Whole
34:42 - Chronic Stress and Living In The Present
43:36 - Deanna Today
48:10 - The Freedom To Make Your Own Decisions
51:54 - Conclusion

Resources Mentioned In Today’s Episode:

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423 | What Are You Optimizing For? | Chris Hutchins Feb 06, 2023

In this episode: what sparks goals, what are you optimizing you, valuing your time, and money prioritization.

Sometimes on the journey to FI, we ask ourselves the following; do I really need to spend money on this? Do I really have the time and resources for that? These questions may be easy to dismiss by saying no in order to stay on track with your financial goals, but by dismissing them, you could be missing out on something that is beneficial to your personal journey! This week we are joined by friend of the podcast, Chris Hutchins, to talk about the hacks for optimizing your life, the differences between cheapness and frugality, and the importance of valuing your time and what it can lead to. Saving money is an important part of achieving FI, but you should never feel so restricted that you miss out on investing your time and money in things that bring joy and value into your life. While saving is important, it’s okay to spend money. Whether it’s on a trip or investing in something new, there are ways to make it work without feeling guilt or shame. Prioritizing and valuing your time can introduce new experiences and provide happiness as well as perspective while on this journey!

Chris Hutchins:

Website: allthehacks.com
Podcast: All The Hacks

Timestamps:

2:27 - Introductions
6:12 - Full Time Podcasting
11:44 - What Sparks Our Goals
18:35 - What Are You Optimizing For?
23:36 - Managing Your Own Money
31:28 - Money Prioritization
39:03 - Valuing Time
50:53 - Real Estate Investing And Complexity
58:23 - The Once A Year Review
65:28 - Prioritizing Health
75:23 - Conclusion

Resources Mentioned In Today’s Episode:

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422 | Lessons From a Young Entrepreneur Jan 30, 2023

In this episode: taking the unconventional path, the price of time, early entrepreneurship, talent stacking, and the pursuit of learning.

At least once in most of our FI journeys, we have pondered what our life would look like if we started earlier. Maybe you have even wondered what value could've been gained if you had started in your teenage years. Well, for some context into the possibilities decision that could provide, we decided to have 17 year old listener Devin on the podcast to discuss what life can look like when you go against the cultural norm of going to college, and instead opting for an entrepreneurial and FI friendly lifestyle. Oftentimes we mention that there are rewards that come with stepping out of your comfort zone, and the same can be said for going against the societal norm and carving out your own path! For our younger audience who may be interested in getting started with their FI journey, let this episode be a useful resource and reassurance that this journey can begin no matter your age!

Timestamps:

1:55 - Introduction
5:28 - Taking The Unconventional Path
11:58 - The Cost Of Time
16:36 - Early Entrepreneurship
30:45 - Building The Talent Stack And Real Estate Investing
36:56 - The Pursuit Of Learning
45:18 - Saving And Investing
51:53 - Early Retirement Planning
69:49 - Conclusion

Resources Mentioned In Today’s Episode:

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421 | Secure Act 2.0 Deep Dive | Sean Mullaney Jan 23, 2023

In this episode: taxes, the secure act 2.0, the best news, roths, 529's, catch-up contributions, and the new options you have.

On December 29th 2022, Joe Biden signed into law the Secure 2.0 Act. As this law may have ramifications on your retirement tax planning, to stay ahead of the curve we decided to have The FI Tax Guy Sean Mullaney back on the show to discuss what this law is and ways one may be able to approach and utilize it going forward with there retirement planning. While laws and regulations may change, staying prepared and aware can keep us worry free as we prepare for the tail end of our FI journey!

The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual.

Sean Mullaney:

Website: fitaxguy.com
Book: "Solo 401k: The Solopreneur’s Retirement Account"
Twitter: @SeanMoneyandTax

Timestamps:

1:25 - Introduction
2:55 - The Most Important Change and The Best News
14:19 - More Roth Options
27:05 - The Backdoor Roths And Catch-Up Contributions
31:46 - New Options For 529's
42:27 - Conclusion

Resources Mentioned In Today's Episode:

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420 | Mindful FIRE | Adam Coelho Jan 16, 2023

In this episode: mindfulness, removing judgement, thoughts creating reality, envisioning, awareness, and the hot seat.

Oftentimes on our show we like to remind listeners that achieving FI isn’t an end all be all to one’s problems, and that reaching financial independence doesn’t automatically equate to happiness. An important part of the journey is the work you do inward along the way, and this week we are tackling what that can look like. This week we are joined by coach and host of Mindful Fire podcast, Adam Coelho, to discuss the important link between mindfulness and FI, and the power our brains have to envision the life we want, and put dreams into action. Taking the time to be aware of how you’re thinking and feeling can be an effective tool. It will not only keep you centered, but allow for you to be open to experiences you might not have thought were achievable. So whether you are familiar with mindfulness practices or are curious where to begin, allow this episode to serve as a resource to begin or strengthen your practice!

Adam Coelho:

Podcast: mindfulfire.org
MindfulFIRE.org/choosefi : Adam's Free Guide with takeaways, a short guided meditation and Adam's envisioning guide

Timestamps:

1:56 - Introduction
4:33 -The Definition Of Mindfulness/Removing Judgement
12:08 - Your Thoughts Create Your Reality
19:08 - Gateways To Meditation/Awareness
27:56 - The Science Of Mindfulness
35:50 - Envisioning
40:25 - It's Not Out There, It's In Here
49:27 - Mindfulness And FI
52:44 - Adam's Google Story
58:21 - Adam Takes The Hot Seat
76:06 - Conclusion

Resources Mentioned In Today’s Episode:

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419 | Your Bold Move for 2023 | Dominick Quartuccio Jan 09, 2023

In this episode: bold moves, building bold moves, dreams, themes, uncomfortable awareness, and finding energy.

For most people, a new year can signify new goals that we hope to accomplish. Regardless of where you are on the FI journey, the new year ushers in a time for change and welcomes the opportunity to learn and grow! In this episode we are re-joined by Dominick Quartuccio to discuss navigating new beginnings and designing your “Bold Move” as we enter the new year. Instead of having a new year’s resolution which may remind you of what you didn’t accomplish the year before, try making a bold move that can act as a quantifiable metric for designing the life you want to live! The journey to FI is filled with ebbs and flows, and with that comes lessons that allow you to grow and learn as you find your way towards the life you want to live!

Dominick Quartuccio:

Website: thegreatmanwithin.com
Course: The Bold Move Masterclass: Use Code CHOOSEFI For 50% Off
Podcast: The Great Man Within
Book: "Design Your Future: 3 Simple Steps to Stop Drifting and Start Living"

Timestamps:

1:21 - Introduction
7:20 - Quiet Desperation And Community
14:32 - The Bold Move
22:28 - Building A Bold Move
30:32 - Increasing Your Luck Surface Area And What Gives You Energy
33:50 - Finding Your Theme And Dream
39:28 - Uncomfortable Awareness And The Turbulence Of Life
47:19 - What You Want Will Reveal Itself, Eventually
56:27 - Using Bold Moves To Identify Dreams
59:04 - Conclusion

Resources Mentioned In Today’s Episode:

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418 | Investing Lessons Learned in 2022 | Brian Feroldi Jan 02, 2023

In this episode: the federal reserve, interest rates, buying the hype, the problems with effortless earning, and narrative follows price.

It’s suffice to say this past year has been one of distinct changes from a financial perspective, with investment techniques and former practices no longer working the same as they did two years ago. However, there is much to be learned and a lot to be gained as we move forward into 2023. This week we are re-joined by a friend of the show Brian Feroldi to discuss his observations on the market changes, and lessons he learned over the course of 2022. Settle into the new year and tune in as we share our thoughts on the macro impact of the federal reserve, psychology of investing, inflation and interest as it relates to different kinds of assets, and so much more!

Brian Feroldi:

Website: brianferoldi.com
Twitter: @brianferoldi
Course: Financial Statements Explained Simply
Book: "Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren’t" By Brian Feroldi

Timestamps:

1:46 - Introduction
6:51 - The Federal Reserve/Interest Rates
15:03 - Inflation Is Still Here
17:21 - Beware Of Effortless Money
24:14 - The State Of Crypto/Buying The Hype
33:48 - Is Cash Still Trash?
36:13 - Bonds Are Worth Consideration
39:25 - Growth Stock Troubles
46:31 - Narrative Follows Price
52:56 - Your Risk Level Is Revealed
56:09 - Conclusion

Resources Mentioned In Today's Episode:

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416 | Learning to Leave | Diania Merriam Dec 19, 2022

In this episode: using your resources to create change, your employer is your customer, identifying discrimination, and abundance mindsets.

For some on the journey to FI, it may seem like you must at all cost continuously strive to meet your monetary goal as quickly as possible. However, staying in toxic and unfulfilling work environments to hold the course with your goal is not what this journey is about. This week we are re-joined by Diania Merriam to have an intimate conversation about leaving a toxic work environment, navigating internalized beliefs, and the power and control gained while on the journey to FI. The greatest part of this journey is not only the earning and having more financial resources, but rather learning that your money is a tool you can use to reclaim your time! Remember, striving for FI is never about deprivation or devaluing yourself, nor does it mean tolerating poor treatment in order to stay on track!

Diania Merriam:

Website: EconoME Conference (Promo Code "CHOOSEFI")
Podcast: Optimal Finance Daily

Timestamps:

2:00 - Introduction
4:25 - The Resignation
15:46 - Identifying Discrimination
25:07 - Culture Shifts And Subtleties
30:10 - Using Your Resources To Create Change
33:12 - Allowing Your Money To Protect You And Coast FI
40:28 - Operating From An Abundance Mindset
48:57 - Your Employer Is Your Customer
54:20 - Shifting From Saving To Covering Expenses
62:30 - EconoME Conference
66:56 - Conclusion

Resources Mentioned In Today’s Episode:

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415 | Four Thousand Weeks | ChooseFI Book Club Dec 16, 2022

In this episode: slowing down, stoicism, finding something to neglect on purpose, focusing on the present, flow states, and actionable steps.

Throughout the history of this podcast we have had many guests discuss books that have offered great advice and education to them on the Journey to FI, and with the large selection to choose from we can't think of a better time to start working down the list! On today’s episode we are joined by Josue and Ginger in our new series The Choose FI Book Club. This week, we’ll be sharing our thoughts and takeaways from the book "4,000 Weeks: Time Management for Mortals" by Oliver Burkeman, as well as share some opinions on the book from our listeners who shared their opinions with us! While many of us on the Journey to FI feel that this lifestyle can be very future-driven, it can be overwhelming to want to accomplish so much with only so much time. This book reminds us that time is finite, and you can’t spend it worrying about what you have or haven't yet accomplished. Instead, it may be best to live in the present and appreciate the day to day as it relates to your journey. Having a timeline and working towards the finish line is part of the journey, but remember that the decisions you are making in your life and the experiences that come with it are just as important as the end result!

Book Club Selection:

"Four Thousand Weeks: Time Management for Mortals" by Oliver Burkeman

Timestamps:

1:48 - Introduction
2:41 - The Concept Of Reading And Retaining
6:23 - Slowing Down And Focusing On What's Important
10:20 - Stephanie's Observation
18:53 - Amy's Observation And Stoicism
23:52 - You Can't Do Everything And CJ's Observation
30:29 - Choosing Something To Neglect On Purpose
33:34 - Shelleys Voicemail And Finding Time To Spend With Others
39:42 - Josh's Voicemail And Planning For The Future While Not Forgetting The Present
46:31 - Flow States
50:27 - Gayle's Perspective And Criticism Counterpoints
57:45 - The Action Steps Taken By YOU
61:47 - Our Actionable Steps
65:34 - Conclusion

Resources Mentioned In Today’s Episode:

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414 | House FIRE | Alan Corey Dec 12, 2022

In this episode: the value of a door, the hour FIRE method, tax breaks, focusing on income, and return on hassle.

Many of our listeners have tuned in to hear our guests discuss the real estate market, mortgages, and taxes as it relates to obtaining property. However, many of us on the road to FI may not realize how scaling the properties you own can actually act as a mutual fund-like portfolio. On this week’s episode we are joined by our new in-house real estate expert, author, and podcaster, Alan Corey. Alan sheds light towards what expanding your real estate portfolio can look like from from a larger standpoint, and how approaching investment from a spreadsheet rather than lifestyle point of view can ultimately offer greater returns in the long run. While we know many listeners may be apprehensive to consider investing in multiple or larger real estate properties, or how this may not seem like a feasible option, this episode is available to you to educate and offer the mental framework on how to approach real estate in a way that it can be achievable!

Alan Corey:

Website: realestatemaxi.com
Podcast: Real Estate Maximalist
Book: House FIRE: How to Be a Red–Hot Real Estate Millionaire with a Wealth of Time and Money

Timestamps:

1:57 - Introduction
2:48 - The Value Of A "Door" And The Business Behind It
8:21 - Navigating The Sea Of Options
16:35 - Reducing Vacancy Impact/Maximizing Potential
23:37 - Tax Breaks
29:54 - The House FIRE Method
39:33 - Focusing On Income
49:59 - Selling 50 Doors
61:19 - Return On Hassle/Million Dollar Value Properties
67:50 - Conclusion

Resources Mentioned In Today’s Episode:

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413 | Mental Wealth & Healing | Rich Jones Dec 05, 2022

In this episode: success on paper, building the life you want, therapy, craving progression, and what leads to change.

When beginning and well into your FI journey, it may seem like reaching and achieving your end goal of financial independence will somehow leave you feeling happier and more fulfilled. However, reaching this end goal doesn’t automatically solve all your problems. On this week’s episode we are joined by founder of FindMoreBalance.com and host of "The Mental Wealth Show" Rich Jones to have a conversation about mental health, rebuilding mindset and behaviors, and importance of finding your network of support in life. The FI journey is a great one because it allows you to introduce changes into your life, and no matter how big or different the changes are, they are still significant! The best part of this journey is that it is a personal one, so try to remember that! While the end goal may be reaching a monetary number, it is also about rebuilding and progressing into the person you want to be in all areas of life!

Rich Jones:

Website: richrunstrack.com
Podcast: The Mental Wealth Show
Instagram: @richrunstrack
LinkedIn: Rich Jones

Timestamps:

4:12 - Introduction
5:36 - Success On Paper
12:31 - The Inflection Point, What Made You Change?
16:14 - Therapy
20:54 - Re-Finding The Person You Want To Be
27:38 - Craving Progress And Mastery
35:11 - Rebuilding Your Day-To-Day Life
43:50 - Leveraging Your Career To Get More From Life
52:21 - Conclusion

Resources Mentioned In Today’s Episode:

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412 | What's In Your Index Fund? | Katie & Alan Donegan Dec 02, 2022

In this episode; global funds, it's not doctrine, index funds, VTSAX, what is in index funds, and the opposite of active investing.

If you've been in the FI community for a while now, you've probably at one point have heard of index Funds. However, whether you are familiar with this concept of investing, have invested in index funds, or are unfamiliar entirely, you may not necessarily know the mechanics and specifics of what certain types of index funds can actually do for you on your FI journey. This week we are rejoined by Alan and Katie Donegan, co-founders of The Rebel Finance School, to dive into the topic of index funds. Together, we discuss the differences between certain types of index funds, fee structures and returns, self-regulating funds, as well as break-down the benefits of what certain types of index funds can provide for you regardless of market and economic fluctuations! While we are not giving direct financial advice on what invest in, this week’s episode is meant as a resource to our listeners who may be curious to learn more about index funds and passive investing!

Katie & Alan Donegan:

Website: alandonegan.com
Podcast: alandonegan.com/podcast
Rebel Finance School: www.alandonegan.com/rebelfinance
VTSAX Breakdown: alandonegan.com/vtsax

Timestamps:

4:11 - Introductions
5:13 - What Is In Index Funds
11:19 - Global Funds
21:54 - It's Not Doctrine, Don't Get Bogged Down In The Details
25:50 - Am I Getting What I Want When I Invest? Should I Be Concerned?
35:14 - The Opposite Of An Active Investor
45:09 - Is Cap-Weighting The Only Way To Run Index Funds?
52:50 - Is There A Future Where Passive Investing Isn't A Good Option?
57:46 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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411 | The Simple Path to Wealth | JL Collins Nov 28, 2022

In this episode: VTSAX funds, bonds, cap-weighted funds, finding your ballasts, staying the course, and the simple path to wealth.

This week, we are getting back to the basics! While many of you who have been in the FI community for a while now have definitely heard of JL Collins, those who are new should absolutely be prepared to absorb the wealth of information he provides every time he decides to grace our podcast! Listen along as he and Brad review the basic information that can put you on the simple path to wealth that so many in the FI community have walked! Believe it or not, creating wealth for yourself can be simple!

JL Collins:

Website: jlcollinsnh.com
Book: The Simple Path to Wealth: Your road map to financial independence and a rich, free life
Chautauqua: Get Information About Chautauqua Here!

Timestamps:

1:46 - Introduction
2:40 - Back To Basics, What Is The Simple Path To Wealth
10:15 - Low-Cost Funds And High-Cost Funds
14:56 - Index Funds Are For Lazy People (Just Kidding!)
20:00 - Is It VTSAX Or Nothing?
26:58 - Cap-Weighted Funds
30:53 - Staying The Course
36:32 - Are There Times When Index Funds Aren't A Good Choice?
42:28 - The Highest Likelihood Of Replicable Success
46:38 - Bonds
51:36 - Rising Rates
55:17 - I-Bonds
58:22 - Finding Your Ballasts
64:55 - Conclusion

Resources Mentioned In Today’s Episode:

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410 | Short-Term Rentals on the Path to FI | Kelly Cronin Nov 21, 2022

In this episode: finding mentors, the superpower of making less, traveling while making less, rental properties, and the one percent rule.

For some who begin the FI journey, it's about doing all they can to reach that FI number, but for many people the journey to FI is about the people you meet and learn from along the way! On this week’s episode we are joined by longtime listener Kelly Cronin to discuss the importance of mentorship, her interesting take that gives a new meaning to traveling while working, and the importance of pursuing what drives you and leads to a life filled with with intentionality. In Kelly's case, a passion towards travel lead to a fascinating side-hustle that affords her the opportunity to make money while seeing the world, who knows where a passion could end up leading you?

Kelly Cronin:

Website: croninscastles.com
Rental Property Class: Cronin's Castles STR Class

Timestamps:

1:55 - Introduction
3:11 - Kelly's Early Financial Influence
6:45 - Finding Mentors
9:02 - The Superpower of Making Less
15:26 - Traveling While Making Less
21:09 - Rental Properties
29:54 - The Mechanics of Acquiring Rental Properties
34:23 - The 1% Rule
41:32 - Running The Numbers
46:50 - How Is Kelly Marketing This?
55:46 - The FI Aspect, How Does This Intersect With Your Job?
64:20 - Where Do You Go From Here?
65:37 - Conclusion

Resources Mentioned In Today’s Episode:

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409 | 401(k), Mega Backdoor Roth and the Premium Tax Credit | Sean Mullaney Nov 18, 2022

In this episode: w2 employment to self-employment, s-coporations vs self-employment, avoiding penalties, megas backdoor roths, retirement planning, and health insurance.

Most of us are familiar with a W2 job, and there is a certain level of convenience that comes with working a W2 job as it relates to retirement planning and taxes. So much so that it can be daunting to want to embark out on your own journey and have to figure it all out on your own. This week we are re-joined by our “in-house tax expert” Sean Mullaney to discuss the tax and retirement sphere as it relates to being self-employed. While we are not offering advice, this week's episode is meant to act as a resource to listeners curious about the steps and unknowns that come with the self-employment territory. With the same excitement and motivations gained from getting to run your own business, those same motivations and excitements can still be applied to navigating your retirement and taxes once you remember that it is now within YOUR control! The fear of the unfamiliar may not be as daunting and complicated as you may think, and figuring out these factors requires you to take the same initiative and action that is required throughout your entire FI journey!

The discussion is intended to be for general educational purposes and is not tax, legal, or investment advice for any individual.

Sean Mullaney:

Website: fitaxguy.com
Book: Solo 401k; The Solopreneur's Retirement Account

Timestamps:

1:42 - Introduction
2:38 - W2 Employment to Self-Employment
11:34 - S-Corporations vs Self-Employment
14:03 - Avoiding Penalties When Making Estimated Payments
19:29 - Saving For Retirement As An Entrepreneur
24:00 - Employee vs Employer 401k Limits and Mega Backdoor Roth
33:54 - Is The Mega Backdoor Plausible For The Self-Employed?
41:03 - Roth IRA Conversions
43:15 - Addressing The Uncertainty Around The Employer Maximum
53:40 - ACA Plans and Navigating Health Insurance As A Solopreneur
63:34 - What Counts As Income?
68:41 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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408 | Debt Payoff, Disney & Taking Action | Audrey Nov 14, 2022

In this episode: taking action, travel rewards, career progression, the mission to net zero, and value propositions for college.

Whether you were raised to live frugally or if the lessons and lifestyle of FI are just now being introduced into your life, the journey to FI is full of ebbs and flow, not only with your finances, but with the knowledge you pick up along the way. This week we are joined by Audrey to talk about her journey with FI, her path to intentionality, and to discuss the power of optimization. Everyone who begins the FI journey comes from a different place of financial literacy, and a lot of the times we may grow up following the “do’s and don’ts” of financial planning that we were raised with. However, you may be missing out on new ways to optimize your FI journey! The best part about FI is that it's a personal journey that allows you to learn new ways to plan, as well as new ways to reallocate your savings and spending in order to live your best life in the present and future!

Timestamps:

1:53 - Introduction
5:03 - Natural Savers
8:25 - Value Propositions For College
11:40 - Tackling Student Loans, The Mission To Net Zero
20:50 - Traveling On Points/Travel Rewards Cards
28:59 - Travel Rewards Hotel Strategy and Point Optimization
32:23 - Credit Cards and Children/Second Generation FI Training
34:50 - Taking Action In Your Post-Debt Life And Evolving
42:16 - Career Progression and Optimization
47:18 - Audrey Takes The Hot Seat
55:24 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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407 | Kristi | Households of FI Update Nov 11, 2022

In this episode: growth during the job hunt, exploring entrepreneurship, tips for career growth, and second generation FI.

It's only natural that on the journey to FI you will want to pivot. Whether it is your financial outlook or even your career outlook, it's only natural to have reservations about making a change that could benefit you in the long run. On this week’s episode of The Households of FI, we are joined by Kristi to fill us in on how her FI journey is going, as well as discuss the topic of “leveling-up”. Changing jobs or moving on to the next career chapter while on the journey to FI can seem farfetched, because often times we want to stick to what is familiar and what is more in line with our plan. However, there is no shame in expanding your network and your options in terms of finding better employment that is more aligned with your values! Don't be afraid to be “un-stuck” and see what career options you have, and make sure you are surrounded by those who are aligned with the same principles as you are!

Timestamps:

2:03 - Introduction
3:41 - An Update From Kristy
5:53 - Growth During The Job Hunt
13:03 - Tips For Career Growth
19:45 - Exploring Entrepreneurship
23:39 - The Finances Of Engagement
27:07 - Being On The Same Page Financially As Your Partner
31:48 - Where Is Your Salary Raise Going?
38:59 - Laying The Seeds For Second Generation FI
51:52 - Conclusion

Resources Mentioned In Today’s Episode:

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406 | 18 Months of Massive Action | Josue Nov 07, 2022

In this episode: taking action, asking questions, navigating information, getting to where you want to go, the reason we learn, and growth mindsets!

Beginning your FI journey often means facing a lot of unfamiliar knowledge being thrown at you. With all the resources and alternative information provided, we know firsthand that it can be overwhelming. However, you should not feel intimidated to start your FI Journey! This week we are joined by an avid ChooseFI listener Josue to discuss the power that comes with learning new information, as well as the importance of taking action from information presented! No matter what financial or educational background you come from, your FI journey starts from a personal square one. Whether the information and knowledge presented from this journey is completely new or relatively familiar, there can be a sense of motivation that can be gained from continuing this journey! If you are searching for early FI excellence defined, then look no further than Josue!

Timestamps:

1:48 - Introduction
2:41 - 18 Months Ago...
5:53 - What Made You Chase FI?
10:43 - Taking Action and Asking Questions
17:30 - Growth Mindset and Changing
20:07 - Navigating Information/Combatting Echo-chambers
33:07 - Getting Where You Want To Go and How Josue Did It
39:40 - The Cost of Not Knowing
42:43 - Retirement Accounts
51:50 - This is Why We Learn/Life Insurance
56:36 - Leasing Cars
60:16 - Savings Rate Based On Value
65:47 - Josue Takes The Hot Seat
77:09 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

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405 | Matt & Meg | Households of FI Update Nov 04, 2022

404 | Just Keep Buying | Nick Maggiulli Oct 31, 2022

In this episode: income-producing assets, REITs, the 4% rule, optimal spending, saving too much, and why you will never feel rich.

It is believed that in order to reach FI, cutting expenses and limited spending seems like the ideal way to your end goal, but are you missing out on ways to spend-to-earn because it feels right? Well, this week we are rejoined by friend of the show and guest host Brian Feroldi to interview Nick Magguilli, author of the excellent book Just Keep Buying: Proven Ways to Save Money And Build Your Wealth. Together we discuss using data to grow your wealth and fighting the stigmatization of spending your money. On the journey to FI it is easy to focus more on saving so much that we’re afraid to spend, however, by not spending we could be missing out on assets, both monetary and non-monetary, that could bring us greater fulfillment in the present and future! By rethinking your approach to spending, rather than looking at it as something that is negative, you may find that your money can go farther for you when its spent rather than saved!

Nick Maggiulli

Website: ofdollarsanddata.com
Book: Just Keep Buying: Proven Ways to Save Money And Build Your Wealth
Twitter: @dollarsanddata
Instagram: @nickmaggiulli

Brian Feroldi

Website: The Motley Fool
Book: Why Does The Stock Market Go Up?
Twitter: @BrianFeroldi

Timestamps

1:29 - Introduction
2:31 - Just Keep Buying
9:27 - Income Producing Assets
10:55 - Macro-Level Mind Changers
14:08 - REITs
16:57 - You Can Save Too Much?
21:40 - How Nick Thinks Through The 4% Rule
26:20 - Spending Optimally
30:59 - Catching Up Financially Through Exercise
34:01 - Examining 401k Maxxing
38:47 - Saving Raises
41:50 - Why You Will Never Feel Rich
46:16 - Investment Properties & Nick
47:55 - Conclusion

Resources Mentioned In Today’s Episode

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
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403 | Alignment & Adjustments | Scott & Taylor Rieckens Oct 24, 2022

In this episode: balancing deprivation and happiness, making adjustments, everything is negotiable, the evolution of alignment, adjusted awareness, and intentionality in community.

Five years ago, Scott and Taylor Rieckens publicly began their path to FI by creating the fantastic documentary "Playing With FIRE." The documentary depicts their life as they start out and navigate the early stages of their FI journey, which is often the period of time when we act our most frugal, cut as many expenses as possible, and in turn save as much as we possibly can! While this kind of lifestyle is a great jumping off point early in the FI journey, oftentimes people find this lifestyle to be limiting and ultimately detrimental to their own happiness. Now that Scott and Taylor are significantly further down the path compared to the last time we heard from them, we decided to have them return to the show to discuss the adjustments they have made in their lifestyle in order to live in a manner that fully aligns with their idea of a happy life! Remember, FI isn't suppose to limit your ability to be happy, rather it exists to enhance your life and help you find fulfillment as progress down the road less traveled.

Scott and Taylor Rieckens:

Website: playingwithfire.com
Documentary: Playing With FIRE
Book: Playing With FIRE

Timestamps:

1:59 - Introduction
2:38 - What Makes You The Most Happy?
8:41 - The Evolution of Alignment and Adjusted Awareness
18:30 - The Craziest 36 Months
23:13 - Revisiting What's Important After Evolution
35:05 - Balancing Deprivation and Happiness
37:58 - Making Adjustments
43:03 - Decisions Are Based On The Information You Have
49:57 - Wonderful Evolutions and Learning Together
51:23 - Everything is Negotiable
57:02 - Everybody is the Star of Their Own Movie / Intentionality in Community
66:34 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

402 | Vivian | Households of FI Update Oct 21, 2022

In this episode: the beauty of community, misleading expectations, doing what's best for your situation, and stress reduction.

The Journey to FI is hardly linear and is full of ebbs and flows. While it may seem easier to share your wins/successes within this community, we know it can be even harder to share the moments of this journey that feel like setbacks. On this week’s installment of the Households of FI series, we are joined again by Vivian to fill us in on how her FI journey is going, and the importance of finding support within this community. Everyone’s FI journey is unique to them, but it doesn’t mean that you are alone! The beauty of FI is that it offers you a community to share your successes, as well as share your struggles. By being vocal and unafraid to admit that you are having a hard time, you are not only sure to garner support from others facing similar battles, but can find a renewed sense of motivation to make you feel more accountable and present on this journey!

Timestamps:

1:57 - Introduction
4:14 - The Beauty of Community
7:56 - Expectations Are Misleading
13:37 - It's Not Black and White, Do What's Best For You
18:30 - Ask For What You Deserve
22:10 - Reducing Stress and Addressing Your Situation
28:51 - Life Is Not A Straight Path
31:02 - Retirement Withdrawals and The Market
38:33 - You Are Not Alone
40:14 - Conclusion

Resources Mentioned In Today's Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

401 | Court from Modern FImily Returns Oct 17, 2022

In this episode: finding unknown opportunity, creating your lifestyle as you go, overcoming the down period, real estate renting, and what reaching FI looks like.

Once you’ve set your FI number and put plans into action, it’s tempting to want to do everything in your power to reach that goal as soon as possible, potentially by working longer hours or cutting out expenses in your life in order to save more. But by doing this are you cultivating the lifestyle you want to live after your goal is met? On this week's episode we are re-joined by Court from Modern FImily to update us on her FI journey, the changes she has made over the last few years, and her rewarding takeaways from being flexible on her journey. The beauty of FI is that it is a personal journey, and it’s one YOU create to reflect YOUR lifestyle! It is important to remember that by rushing to meet your goal, you may be adding more stress than needed, and missing out on the lessons, hacks, and new opportunities (or use experiences) that come with starting this journey!

Court From Modern FImily

Website: modernfimily.com
Instagram: @modernfimily

Timestamps

1:51 - Introduction
2:28 - Update From Courtney
8:22 - Testing to Find Unknown Opportunity
14:19 - Creating Your Lifestyle on the Journey
20:10 - Overcoming the Down Period
25:27 - What Do You Want Your Life to Look Like?
28:30 - Finding Free Activities
37:03 - Annual Passes and Finding Groups
41:25 - Real Estate Renting and Simplicity
48:37 - Flexibility and Taking Advantage of Whats Available
52:04 - What Reaching FI Looks Like
64:23 - Conclusion

Resources Mentioned In Today’s Episode

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

400 | Zach & Marilyn | Households of FI Update Oct 14, 2022

In this episode: house hacking, benefits and compensation packages, earning extra income and side hustles, and not setting perfection as your goal.

We know achieving FI doesn't happen overnight, and rarely does it happen perfectly according to plan. Life happens, changes happen, and uncertainty usually finds a way to throw you off your planned path. This shouldn’t be something to fear! Today in the Households of FI series we are joined again by Zach to fill us in on how his FI journey has progressed over the last couple years, as well as to discuss the importance of re-adjustment! While failure is never an easy thing to accept, the fear of failing may deprive you of some excellent learning opportunities. By remaining intentional with your FI plan rather than striving for perfection, you will allow yourself to overcome uncomfortable lulls and expand your journey to places you might not have thought were possible!

Timestamps:

1:51 - Introductions
4:45 - Zach and Marilyn Update
7:16 - House Hacking and Limiting Expenses
13:30 - Life is Lumpy, Perfection Isn't The Goal
21:39 - Examining The Whole Compensation Package
31:40 - Earning Extra Income
40:15 - Zach's 6 Year Path To FI
46:21 - If You Weren't Afraid, What Would You Do?
53:15 - Being Open to Exploring
56:53 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

399 | Money with Katie | Katie Gatti Oct 10, 2022

In this episode: finding purpose, misaligned values, being the product of your environment, the stock market as a source for wealth building, and modern two-player mode.

We encourage our listeners that there is no wrong age to start your FI journey, but for those of you starting your FI journey as a young adult, the firehouse of foreign information can feel overwhelming. Sometimes it may even seem as if you’re too far behind to even start! The good news is, you're not! Today we are joined by Katie Gatti from Money With Katie to talk about how she navigated FI in her early 20s, and how she used a lack of knowledge as a motivator to get to a place of financial independence. Everybody starts this journey at a different place in their life and no two people are the same. By being patient and finding value in learning something new, you are certain to find yourself more motivated on your FI journey!

Katie Gatti

Website: moneywithkatie.com
Podcast: The Money With Katie Show
Twitter: @moneywithkatie
Instagram: @moneywithkatie

Timestamps

1:36 - Introductions
2:09 - Katie's FI Journey
8:32 - Finding Meaning and Purpose
11:53 - Misaligned Value and Personal Finance
18:58 - Katie's College Decision and Education
25:03 - Forming Yourself as the Product of Your Environment
31:40 - It's Never Too Late For FI
39:03 - The Stock Market as a Means of Wealth Building
49:09 - Modern Two-Player Mode and Setting Financial Expectations
55:41 - Katie Takes The Hot Seat
67:07 - Conclusion

Resources Mentioned In Today’s Episode

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

398 | Troy & Lindsay | Households of FI Update Oct 07, 2022

In this episode: career changes, up-skilling, re-prioritizing, accruing debt for value, childcare, and emergency funds.

The journey to FI is never linear. Sometimes we can find ourselves thinking the only way to meet our goals is to follow a strict plan, which can make adjusting said plan feel like a daunting set back. Well, our returning Households of FI guests Troy and Lindsay believe that flexibility during ones journey to FI can provide you with tremendous value! Making changes in your life, whether it's accruing temporary debt or changing careers, can actually lead to big time payoffs! While it may feel more secure to have a set trajectory with your financial goals, we know life gets in the way! So instead of sticking with a plan that isn't making you happy, try to stay flexible and evaluate all your options!

Timestamps:

1:34 - Introductions
4:55 - Troy and Lindsay Update
12:10 - Avoiding Over Optimization
18:49 - Up-Skilling & Career Changes
27:56 - Upgrading Income and Re-evaluating Priorities
36:15 - Accruing Debt for True Value
40:20 - Emergency Funds
42:58 - Going On Autopilot
46:00 - Expenses and Childcare
50:34 - Evaluating Your Work and Worth
53:14 Raising FI Children
58:54 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

397 | Securing Your Financial Life Oct 03, 2022

In this episode: cybersecurity, password managers, two-factor authentication, safely navigating the internet, and more hot-seat questions!

Have you ever considered how secure your finances are in the modern world? Within the cyber-dominated world we are all living in, it can be tough to stay on top of updates, passwords, and other necessary resources that help us keep our digital footprints safe. Well in order to provide you all with some high-level tips and tricks to stay ahead of the curve, we decided to have long time listener and cybersecurity expert Tom on the show this week to discuss how you can secure your online life. Keeping yourself secure and your assets safe is one of the best ways to ensure a progressive future as you move forward in the digital era while on your FI journey!

You can find the link to Tom's Facebook thread here!

Timestamps:

1:44 - Introduction
2:52 - Passwords and Password Managers
13:22 - Two-Factor Authentication
22:03 - Email Links
28:38 - Cyber Financial Risks
34:57 - Surfing The Web Safely
39:14 - Antivirus Software
43:57 - Public Wifi, Back-ups, and High-Level Tips
55:18 - Look Out For Elderly Loved Ones
58:38 - Tom Takes On The Hot Seat
75:01 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

396 | The Valuist | Bo Loy Sep 26, 2022

In this episode: evolution, knowing the rules, making purposeful decisions, automation, and the return of the hot seat!

In the advent of making money, oftentimes we can find ourselves torn between a state of over-saving through budgeting and cutting expenses, and over spending just because we have the means to. But is that what we really are looking for in our respective FI journeys? With thoughtful planning and proper action maybe we can happy medium between the two that doesn’t feel over invasive. Today we are joined by Bo Loy to discuss the concepts of finding adventures that don't break the bank, purposeful decision making, and the perks of automating your money. Also we heard your feedback! Back by popular demand this week, Bo Loy will be answering questions in our freshly renewed segment, The Hot Seat!

Timestamps

1:26 - Introduction
2:23 - Evolution and Perspective
9:12 - It All Adds Up
14:22 - Reviewing, Insurance, and HSA
24:11 - Knowing the Rules
32:00 - Tax Loss Harvesting
37:45 - Making Purposeful Decisions
44:02 - Finding Free Adventures
49:01 - Automation
66:17 - The Hot Seat Returns
79:10 - Conclusion

Resources Mentioned In Today’s Episode

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

395 | The Debtist Finds Balance in FI Sep 19, 2022

In this episode: student loans, the impact of knowing, navigating the pandemic, the power of planning, and the freedom of FI!

Tens of millions of people deal with student loan debt, and even with the recent news of loan forgiveness, there are still many who are left unequipped with the knowledge of the best ways to repay these debts without sacrificing from their lifestyle. Today we are rejoined by Samm, aka “The Debtist,” to get an update on how she has been navigating paying off her student loans, as well as how her financial mindset has changed over the last 4 years. Just because you take on debt does not mean you have to deprive yourself of the life you want until the debts are paid off! By changing your mindset to one of abundance of opportunity rather than scarcity of opportunity, the path to FI can open many doors for you! Paying down your loans, entering into new professions, and not letting your money control your ability to find happiness are all just examples of what is possible while getting yourself out from debt!

The Debtist:

Website: The Debtist
Instagram: @thedebtist

Timestamps:

1:25 - Introduction
1:50 - Sam's Student Loan Story
6:34 - Switching From IBR and The Impact of Knowing
10:48 - Navigating the Pandemic Pause
14:06 - The Freedom of FI
17:45 - The Aftermath of the Pandemic
24:56 - The Doors You Can Open By Shutting One
30:51 - The Power of Planning
38:18 - The End of the Pandemic Pause
46:35 - Conclusion

Resources Mentioned In Today's Conversation:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

394 | From Blood Cancer to Boston Marathon | Boyd Dunleavey Sep 12, 2022

In this episode: resilience, making good choices, letting go of limiting beliefs, attracting the energy you put out, and winning at life!

What would you do if you were given a terminal cancer diagnosis? While it might not be the first thing that comes to mind, if you're able, the Boyd Dunleavey option is to develop a new positive outlook on life and the energy your omitting into the world, win your fight with cancer, and then proceed to run 11 marathons. Bad news comes to every single one of us, but how we process and handle that news is entirely up to us! Choose to handle it the right way, move forward with your life, and prioritize the things that matter to you. Despite what you may have been told, you have no idea where it could lead you ten years down the road!

Boyd Dunleavey:

Check out these sites to see if your someones much needed match!
- Be The Match
- One Match
Two fantastic groups in the cancer community that Boyd loves and trusts!
- Gryt Health
- Man Up To Cancer
Connect With Boyd
- Facebook: From Blood Cancer To The Boston Marathon
- Instagram: @from_blood_cancer_to_boston

Timestamps:

1:22 - Introduction
2:49 - Choices Bearing Fruit/ Boyd's Backstory
11:42 - Taking The Better Path
20:04 - The News That Changed Everything
24:36 - Resilience and Pivoting
29:41 - You Could Be Someones Match
34:20 - Attracting The Energy You Put Out
39:16 - The Places Your Energy Can Take You
47:27 - The Boston Marathon
51:07 - It's a Choice to Make Good Choices/Ripple Effects
58:40 - Goal Setting, Financial Resilience, and Winning at Life!
68:34 - Let Go of Limiting Beliefs
71:00 - Conclusion

Resources Mentioned In Today’s Episode:

More Helpful Links and Resources:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

393 |Travel Rewards Refresher 2022 | Lyn Mettler Sep 05, 2022

In this episode: Travel Rewards, Credit Cards, and The Value of Rewards Points.

We all know that it can be expensive to travel, and sometimes the joy and excitement of taking that long-awaited family vacation can be overshadowed by the cost of taking the trip. But what if there was a more efficient way to travel that doesn’t feel like you are breaking the bank? Well, with effective planning and the right tools this is entirely possible! This week we are once again joined by Lyn Mettler who will discuss to maximizing your spending in a way that does not deprive you, but rather rewards you!

Lyn Mettler:

Check Out Lyn's Free eBook How to Earn the Southwest Companion Pass!

Timestamps:

1:30 - Introduction
3:50 - Credit Cards
7:50 - The Value of Points
16:53 - Two-Player Mode and The 5-24 Rule
20:35 - Where to Start With Travel Rewards
25:03 - Limitations and Strategy
31:33 - Why This Works With FI
33:31 - The State of Travel Part 1
37:15 - Award Charts and Wiggle Room
41:28 - Points and Hotels
48:25 - The State of Travel Part 2
50:31 - The Booking Order
58:44 - Conclusion

Resources Mentioned In Today's Episode:

More Helpful Links and Resources:

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392 | Beginning of a New Era Aug 29, 2022

In this episode: Unlocking Freedom, The Optimized Path, Skilling Up, The Perpetual Money-Making Machine, and a New Era of ChooseFI.

It is truly the end of an era at ChooseFI. After six years, over 400 episodes, and all the laughs shared along the way, Jonathan is taking a step away from show to explore a new chapter in his life. On his way out, he and Brad hopped on the microphones as co-hosts one last time to discuss the lessons they have learned making this podcast, some key points of consideration for your FI journey, and the absolutely amazing community that has been built around this podcast. This audience truly embodies the word crowd in the word crowdsourced. Best of luck to Jonathan on all his new endeavors, and be sure to tune in next week as Brad carries the podcast into its new era!

Timestamps

0:57 - The End of an Era
5:00 - The Last 5 Years and The Evolution of FI
12:12 - Unlocking Freedom
15:57 - Math, Hope, and Time
19:47 - The Optimized Path
25:21 - The Perpetual Money Making Machine
34:16 - Skilling Up and Education
38:58 - The Value of Being Crowdsourced
46:36 - Reach Out To Us!
48:07 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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391 | The Student Loan Reset (Urgent Listen!) | The Student Loan Planner Aug 22, 2022

In this episode: student loan forgiveness, public service loan for forgiveness, and getting closer to loan forgiveness.

How would you respond to finding out your looming student loan debts could be forgiven? Well for some of you that could be possible, but you need to act quickly! Travis Hornsby from The Student Loan Planner joins the show this week to discuss public service loans for forgiveness, and how a massive opportunity to tackle your student debt could be available to up to 25% of people with student loans, but only for a limited window of time! The deadline for applications for this waiver is currently October 31st, 2022 so listen along to see if this option can be applicable to you, and if so visit the link to book a consultation with The Student Loan Planner team ASAP!

The Student Loan Planner

Book a personalized consultation with The Student Loan Planner team (including an automatic $100 discount for ChooseFI listeners!)

Timestamps

1:43 - Introduction
3:04 - The Public Service Loan for Forgiveness
4:51 - Public Service
6:05 - The Problem This Fixes
11:57 - Getting Closer to Forgiveness
16:21 - Why This is Urgent
21:13 - Deadline Information
22:54 - Slam Dunk Case Example
28:36 - Self Screening Test
30:20 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
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390 | Taking Stock of Your Life | Jordan Grumet Aug 15, 2022

In this episode: marginal gains, prioritizing your present, purposeful living, impacting others, and goal setting.

Whether you like it or not we all will eventually die someday, and when that time comes the last thing we want to do is to look back on our lives with regret. Oftentimes in life we let expectations, outside obligations, and future ambition rule over us in the present, without fully realizing we could be living our dream life in the present! Nobody understands this more than former hospice doctor Jordan Grumet (aka Doc G) who comes back to the show to discuss the importance of finding meaning in the way we approach our goals, and how becoming more intentional and present could lead to a more fulfilling and purposeful life!

Jordan "Doc G" Grumet

Website: jordangrumet.com
Book: Taking Stock: A Hospice Doctor's Advice on Financial Independence, Building Wealth, and Living a Regret-Free Life
Podcast: Earn & Invest
Blog: DiverseFI

Timestamps

1:27 - Introductions
2:30 - Sam's Story
6:29 - It's Not Bout The Goals, It's about The Processes
14:23 - Marginal Gains
17:33 - Prioritizing Yourself
23:24 - Your The Star of Your Own Story
27:20 - Making Ripples and Impacting Others
35:24 - What Would You Do if Money Wasn't an Issue?
41:36 - Money is a Tool and Measuring Friction
50:15 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

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389 | The Language of Business Aug 08, 2022

In this episode: interpreting financial statements, utilizing financial statements, balance sheet statements, income statements, cash flow statements, and valuing a business for its purpose.

Have you even wanted to learn the language of business? Not in a literal sense, by that we mean understanding the ways businesses communicate what their real value is to the general public and potential investors? Well if you have had this incredibly niche thought, you're definitely a member of the FI community, and you're also in luck! Brian Feroldi is back on the show to discuss financial statements and the information certain financial statements indicate, as well as act as your translator for the language of business! Understanding this language can be a massive help in your own decision making going forward!

Brian Feroldi

Twitter: @BrianFeroldi
YouTube: Brian Feroldi
Website: brianferoldi.com

Timestamps

1:26 - Introduction
2:44 - Financial Statements
5:35- Read and Interpret
8:58 - The Three Main Financial Statements
13:33 - Balance Sheet Statements
22:09 - Utilizing Financial Statements
24:06 - Income Statements
30:04 - Claim on Earnings
33:58 - Cash Flow Statements
44:13 - Valuing a Business for it's Purposes
47:22 - Not All Businesses are Equal
50:16 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

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388 | The 18-Year-Old Who Actually Listened Aug 01, 2022

In this episode: college hacking, career hacking, the power of starting early, trade jobs, and salesforce careers.

How many times in the past have you been listening to this podcast and thought, "I wish I knew about this when I was younger." Well today's guest Zach actually had the foresight to start using the lessons he learned from this podcast at the ripe age of 18, and the results may be envy inducing! It's worth noting that not starting your FI journey at the age of 18 doesn't discredit you from a happy and financially independent life. But it's also worth noting that the sooner you start, the sooner you'll be able to reap the rewards, so start today!

Timestamps

1:08 - Introduction and Zach's E-Mail
3:03 - What were you looking for when you found the FI community?
5:43 - Dual Enrollment
15:06 - Evaluating Your Education Options and Expenses
22:29 - Military Service and College Education
26:39 - First Job Out of College and Trade Jobs
35:05 - 20 Years Old, $65,000 Yearly Salary, No Debt, What Next?
37:04 - The Power of Starting Early
42:26 - Zach's Career Change
53:31 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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Keep learning or start a new side hustle with one of our educational courses
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387 | How Real Estate Investors Make it Work in High Interest Environments | Coach Carson Jul 25, 2022

In this episode: real estate investing, the fundamentals of real estate investing, real estate investing variables, interest rates, and private money financing.

With today's real estate market is it even possible to get some skin in the game as an investor? While thing's aren't exactly optimal for buyers right now, if you are creative and informed with your decision making, it is absolutely possible to get in the game! Listen along as Coach Carson joins the show to discuss how this is still possible and ways the small and mighty investors continue to succeed in the real estate market!

Chad Carson

Website: coachcarson.com
YouTube: Coach Carson TV
Podcast: Real Estate and Financial Independence Podcast

Timestamps

1:13 - Introduction
2:09 - Elephants In The Room
5:41 - What Is The Market Doing?
9:13 - Interest Rates
17:32 - Do You Even Go To A Traditional Bank Anymore?
24:28 - Unknown Variables
28:50 - Private Money Financing
38:15 - It Always Comes Down To Earnings
44:23 - Surviving 2008
51:08 - The Cost For Private Investors
59:38 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

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386 | The $100K Glorified Sleepaway Camp | Millionaire Educator Jul 18, 2022

In this episode: College Hacking, College Credits for less, ACE Courses, CLEP Exams, and The Most Cost Efficient Bachelors Degree

A college education may be the most daunting expense members of the FI community have on their horizon. As we all know by now, the cost of modern higher education has skyrocketed and has shown virtually no signs of decreasing or even leveling off! However Gerry Born, also know as the Millionaire Educator, may have found a way to reduce the overall cost of said education while still retaining the aspect of freedom we in FI community hold so dearly. Listen along to see if this alternative path to a college degree could be applicable towards you or your loved one's futures!

Millionaire Educator

Website: millionaireeducator.com
Twitter: @GerryBorn

Timestamps

1:11 - Introduction
2:44 - The "College Experience"
6:55 - CLEP Tests
11:17 - Spending Credits
21:15 - The Cost Effective Option
25:35 - ACE Courses
28:48 - The Credit Stacking Experience
37:12 - Pairing This Methodology with the Classic College Experience
41:04 - The Most Optimized Bachelors Degree
47:32 - Using College to Learn Your Craft
52:53 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new side hustle with one of our educational courses
Slash your cell phone bill without sacrificing service with Mint Mobile

385 | Time Is Your Ultimate Luxury Jul 11, 2022

In this episode: Time as a Luxury, The Power of F-U Money, The Cost of DIY, Planning, and Decision Making.

Even though time is our most precious non-renewable resource, the society we live in tends to take that fact for granted. Is working more to earn more really the most efficient use of your time? Possibly, but effective planning and delegation of your resources can help you find a much better balance between the things you have to do to support your lifestyle, and the things you want to do throughout your life! Once time is spent you can't get it back, so plan accordingly so you can make the most of it!

Timestamps

0:56 - Introduction and Are Your Winning Life?
4:18 - Tax Abatement Feedback
11:30 - Credit Cards Purchases
19:34 - Crypto Exchanges
23:55 - Time is the Ultimate Resource
30:16 - Finding a Sweet Spot Between Frugality and Freedom
38:12 - The Power of Evaluating Your Options
46:55 - Planning Unlocks Freedom
53:29 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
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Keep learning or start a new side hustle with one of our educational courses
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384 | Functionality with Numbers Jul 04, 2022

In this episode: functionality with numbers, the rule of 74, decision making, free roles, and tilting the odds in your favor!

Setting yourself up for success is one of the FI community's main ideals, but what is the best way to go about doing that? Well, to put it simply, math. While the mention of math may be enough to put some people off entirely, what if we told you basic math could be enough to prime yourself up for success? Simple addition, subtraction, multiplication, and division when applied right can have a huge impact on your personal finances! Listen along and see if there are any ways you could apply basic math into your own decision making going forward!

Timestamps

1:00 - Introduction and Functional Numbers
2:47 - Rule of 72
7:44 - Math is Rad!
11:27 - Math and Opportunity Costs
18:38 - Decision Making
26:03 - Free Roles
33:54 - Credit Card Costs
39:52 - Hunting for Win-Wins
44:39 - Conclusion

Resources Mentioned In Today’s Episode

If You Want To Support ChooseFI:

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383 | What Do You Want to be When You Grow Up? | The Fioneers Jun 27, 2022

Topics in this episode: lifestyle design, coast fi, slow fi, identity, career, and creating the life you want.

Sometimes it can be hard to separate what you do for a living from who you are as a person. Also, financial situations and limited resources can make you feel stuck living a life that doesn't align with your interests and values. But fear not for this is a cycle that can be broken! Listen along as Lauren from "The Fioneers" joins the show and walks through steps you can take to potentially unlock some more freedom in your life!

Jessica From The Fioneers

Website: The Fioneers
Coaching: Design A Life You Love
Twitter: @TheFioneers
Instagram: Thefioneers
Facebook: Slow FI Enthusiasts

Timestamps

1:04 - Introductions
1:56 - Jessica Update
5:23 - What Do You Want To Be When You Grow Up?
12:03 - Identity and Career
18:35 - Slow FI and Coast FI
27:12 - It's Not Set In Stone
32:44 - Fear and Creating The Life You Want
41:38 - From Passion to Career
45:05 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
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Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

382 | Name Your Fear, Control Your Risk Jun 20, 2022

In the week's episode, Brad and Jonathan examine the current state of the housing market and discuss different ways in which risk can be controlled.

It seems like we are currently living in some of the most interesting financial times ever to have occurred. Crypto currencies are seemingly disappearing overnight, interest rates are shooting up, and the inflation rate continues to climb! While all of these examples can cause one to be fearful, preparation and attention to detail are two traits that allow those in the FI community to stay calm! Identify your fears, control situations where you are taking on risk, and continue crushing your journey down the path to FI!

Timestamps

0:58 - Introduction
2:01 - The Tail End
5:58 - The Most Interesting Financial Times
13:26 - Housing
18:22 - Conversation With A Friend
26:06 - Components of The Monthly Payment
34:40 - 40 Year Mortgage and Renting
45:20 - 10% Intrest Rates
53:05 - Crypto Sidecar
57:15 - Crypto Security
61:39 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
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Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

381 | Common Sense Spending Guidelines | Housing Jun 13, 2022

In this week's episode, Brad and Jonathan discuss different guidelines that can help ensure your mortgage won't infringe on your FI goals!

Becoming an home-owner doesn't have to mean the collapse of your own financial stability! By planning ahead and working within your personal limitations, your journey to a happy, healthy, and simple life can continue unabated! Listen along to see if the common sense guidelines mentioned can be beneficial to your situation!

Timestamps

1:02 - Introductions
3:01 - Insufficient Funds
11:55 - Tackling Overdraws
19:21 - What Can You Really Afford?
26:36 - The Bracket Breakdown
31:13 - FI-ifying Your Budget
35:13 - The Payment Breakdown
45:53 - Working The Table
53:46 - Mortgage Factors
57:30 - Make The Best Decision For YOU
68:43 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
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Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

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380 | Optionality: Making Choices with Finite Resources Jun 06, 2022

In this week's episode, Brad and Jonathan discuss different routes you can take in order to create options for yourself with limited resources.

Everyone has a finite amount of financial resources at their disposal and everyone is always questioning what they should be doing with what they have. While nothing is guaranteed, thankfully there are steps you can take to protect your resources and make informed decisions. Listen along as the guys discuss creating options for yourself and hopefully the information can be helpful towards dealing with uncertainty!

Timestamps

0:56 - Introduction
1:59 - The Rule of 72
8:51 - Bitcoin Purchase and Computer Safety
16:57 - Crypto Crashes
21:42 - Intrinsic Value
28:04 - Guaranteed Returns
34:40 - Protecting Yourself
45:27 - Finding Options in Uncertainty
52:54 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

379 | The Hidden Job Market May 30, 2022

In this week's episode, Brad and Jonathan welcome back Bradley Rice and Anita from Talent Stacker to discuss the hidden job market and how you can break into it!

Many consider the best path to a successful career getting an education, claiming a certification or degree, and working your way up the corporate ladder. But what if there could be an alternative? Utilizing your current skills, developing some new skills, and successfully networking could be your key to unlocking the hidden job market and leveling up your career! Listen along to learn how Bradley and Anita took this path less traveled and see if it can be applicable to your life and career!

Bradley Rice and Anita

Website: Talent Stacker
Podcast: The Salesforce for Everyone Podcast

Timestamps

1:29 - Introduction
4:06 - Unorthodox Choices, Radical Results
13:52 - No Degree Needed and Developing Skills
23:35 - Overcoming Traditional Objections
29:04 - Finding Communities
32:03 - Personal Branding
37:22 - The Hidden Job Market
43:30 - Volunteer Experience and Interviews
55:10 - Compounding The Positives
59:10 - The Salesforce For Everyone Podcast
66:15 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

378 | Earning Power: The Best Protection Against Inflation May 23, 2022

In this week's episode, Brad and Jonathan dissect the idea of earning power being used as a weapon to combat inflation, and strategies you can implement to level up your income!

One of the best ways to reduce the impact inflation has on your life is to out-earn the inflation rate. While that solution can easily fall under the umbrella phrase of, "easier said than done," there are actions you can take to make that process easier for yourself! Listen along as the guys discuss different strategies to approach raising your income and see if any of them can apply to you and your FI journey!

Timestamps

0:55 - Introductions and Season's Change
5:37 - Times is a Resource
9:10 - Start With Spending
14:07 - College Cynicism
21:53 - The Career Freedom of FI
25:04 - Income Combatting Inflation
28:10 - Performance Reviews and Standing Out
36:15 - The Art of Salary Negotiation
43:00 - Influence
45:03 - The Script
51:31 - How Can I Improve This?
53:42 - Opportunity and Conclusion

Resources Mentioned In Today’s Conversation

Glide Path to Retirement During Uncertainty | ChooseFI Ep 377
Subscribe to The FI Weekly!
Early Retirement Extreme
Career Hacking With ESI Money | ChooseFI Ep 23
How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic | ChooseFI Ep 211
Glassdoor
Influence: The Psychology of Persuasion by Robert B. Cialdini
Salesforce: A Lucrative Career and No Degree or Tech Background Needed

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

377 | Glide Path to Retirement During Financial Uncertainty May 16, 2022

In this week's episode, Brad and Jonathan discuss different ways to retain a sense of control along the path to retirement during times of uncertainty. While low points in the economy tend to cause worry, focusing on steps that can be taken to continue forward progress is what helps set the FI community apart! Join the guys as they discuss information that could help you navigate the murky waters ahead and continue along with your FI journey! Timestamps

1:02 - Disney and Travel Rewards
9:52 - Age of Uncertainty
17:41 - Controlling What You Can
20:35 - Returns and Inflation
26:09 - The Glide Path
27:49 - Series I Bonds
39:18 - Controlling Income and Expenses
48:10 - When The Market Turns...
52:47 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

376 | The Four Backstops to the Four Percent Rule | Sean Mullaney May 09, 2022

In this week's episode, Brad and Jonathan welcome Sean Mullaney back onto the podcast to discuss the four backstops of the Four Percent Rule! While many in the FI community consider the Four Percent Rule to be a pillar for retirement planning, these relatively unknown backstops could save or enhance your retirement as you continue along the path less traveled! Listen along to see if any of these backstops could apply to you and your own future planning!

As always, the discussion is general and educational in nature and does not constitute tax, investment, legal, or financial advice with respect to any particular individual or taxpayer. Please consult your own advisors regarding your own unique situation. Sean Mullaney and ChooseFI Publishing are currently under contract to publish a book authored by Sean Mullaney.

Sean Mullaney

Website: The FI Tax Guy
Blog: The FI Tax Guy Blog

Timestamps

0:59 - Introductions
1:37 - The Four Percent Rule and Inflation
12:20 - Annual Expenses
14:19 - Decline in Energy and Expenses
22:14 - Social Security
30:53 - Downsizing and The Reverse Mortgage
38:53 - Later Years Backstops
43:21 - Mortality
48:48 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

375 | What is Savings Rate and How to Calculate It? May 02, 2022

In this week's episode, Brad and Jonathan continue along their, "Financial Independence A to Z," journey by examining savings rate and the many different ways it can be calculated! One of the pillars that sets the FI community apart is the emphasis on saving money in order to unlock more in your life. So, by having the right tools needed to calculate your savings rate, you can begin to make adjustments and hopefully start the process of taking back your time!

Timestamps

0:59 - Introductions
4:30 - Ben's Question
7:41 - How Do You Calculate Your Savings Rate?
12:00 - Why Savings Rate Is Important
18:25 - Nuances In Saving
21:55 - Calculation Example
28:15 - Scenario Three
37:57 - Looking At The Nuances
46:56 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

374 | Tools to Simplify Budgeting and Tracking Finances Apr 25, 2022

In this week's episode, Brad and Jonathan discuss a variety of tools that can help you stay on-top of your budget. Whether you create your own tracking systems or don't have any expense tracking systems in place yet, there likely is a tool mentioned in this episode that can help you get one step closer to your financial goals! Remember, keeping your expenses organized can help you take drastic steps forward in your FI journey!

Timestamps

0:56 - Introductions
3:57 - Identity Statements and Failure
9:55 - The Post Tax Season Check-Up
13:33 - The Large Tax Return
17:34 - Simplifying Your Financial Life
22:34 - Loading Your Financial Tool-belt
26:25 - Tracking The Cost Of Your Life
34:53 - Tracking Softwares
42:17 - Envelope Systems
46:44 - Should You Use A Budgeting Template
51:56 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

373 | Natural Remedies, Startup Economics & Financial Literacy A to Z Apr 18, 2022

In this weeks episode, Brad and Jonathan discuss some natural remedies your may find useful in your life, the economics behind the modern startup scene, and most importantly the basics pillars of financial literacy! Join the guys as they share their philosophy towards tackling financial literacy and why it is such an important topic to study. By knowing the rules of the game, maybe you can start to widen that gap between income and expenses!

Timestamps

0:56 - Introductions
1:52 - Fulfilling Remedy Responsibilities
6:22 - WeWork and Startup Economics
12:47 - Increasing The Gap
17:11 - Picking a Career
20:20 - Financial Literacy A to Z
24:33 - Budgeting and Optimizing Expenses
32:42 - Automating Your Finances
36:06 - The Longterm Mindset
44:40 - Borrow and Protect
52:17 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

372 | Can I Get an Extension, Please? Apr 11, 2022

It's officially tax season! In this week's episode, Brad and Jonathan discuss tax extensions and share some of their experiences paying taxes in the past. No matter what walk of life you are in, at the end of the day we all have to pay taxes. As members of the FI community, we should do our best to stay calm and tackle the task!

Timestamps

1:10 - Introductions
1:55 - Daylight Savings
5:18 - Viral Nightmare Tax Scenario
11:36 - Putting Aside Taxes
20:39 - Extensions
26:32 - The Not Genius Move
31:17 - Larger Than Expected Tax Bills
34:30 - Small Business and Side Hustles
37:53 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

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371 | Why Does the Stock Market Go Up? | Brian Feroldi Apr 04, 2022

In this week's episode, Brad and Jonathan are joined by author and friend of the show Brian Feroldi. After spending two years writing the book, Why Does The Stock Market Go Up? Brian is returning to the show once again to share with you the valuable lessons he has along the way! Join the trio as they discuss why the stock market goes up, down, and everything in-between!

Brian Feroldi

Twitter: @BrianFeroldi
Book: Why Does The Stock Market Go Up By Brian Feroldi

Timestamps

1:33 - Introductions
2:40 - Understanding The Market
7:07 - History Of The Dow Jones
13:19 - The NASDAQ
16:35 - Valuation
23:22 - The Future Is Inevitable
24:45 - Stock Splits
33:14 - What Are You Buying?
44:10 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
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Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

370 | Timeline Your Goals | Stacked with Joe Saul-Sehy Mar 28, 2022

In this week's episode, Brad and Jonathan sit down with Joe Saul-Sehy, co-author of the book "Stacked" and co-host of the "Stacking Benjamins" podcast. Together, the trio discuss how to properly set goals for yourself and ways you can continue to move that needle along! If you stick to your timeline and ask the right questions, before you know it you could be on the right track!

Joe Saul-Sely

Website: joesaulsehly.com
Book: "Stacked: Your Super-Serious Guide to Modern Money Management" by Joe Saul-Sehly and Emily Guy Birken
Podcast: The Stacking Benjamins Podcast

Timestamps

0:51 - Introductions
5:20 - Goal Setting And The Timeline
10:41 - Bad Questions And False Rabbit Holes
15:25 - Talking Family Finance
20:24 - Budgeting And Tracking
28:25 - Comparison Is The Thief Of Joy
32:21 - Financial Advisors
45:30 - Assets Under Management
51:51 - About "Stacked" And Where You Can Find It!
54:02 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

369 | The Unstoppable Force Vs Immovable Object: Clarity and Goal Setting Part 2 Mar 21, 2022

What happens when an unstoppable force meets an immovable object? In this week's episode, Brad and Jonathan continue their discussion from last week about clarity and goal setting, but this time they focus on ways to circumnavigate the seemingly immovable objects in our lives. Overcoming objections that prevent us from the futures we want can actually be surprisingly easy if you adopt the right mindset. Become the unstoppable force that shatters those barriers holding you back!

Timestamps

1:00 - Introductions
1:53 - Goals & The Aggregation of Marginal Gains
6:58 - Manifestation
14:55 - Clarity & What YOU Want
24:27 - Becoming The Unstoppable Force
30:10 - Controlling Monthly Expenses
35:12 - Car Payments
37:46 - Accounting For Your Mindset
42:43 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

368 | Declutter, De-noise & De-stress : Clarity and Goal Setting Part 1 Mar 14, 2022

In this week's episode, Brad and Jonathan kick off part one of a two episode series focussed on decluttering, de-noising, and de-stressing your life! What makes the FI lifestyle so special is it's ability to block out social norms allowing for us to build our own healthy, happy, and free lives! By decluttering your life, you can surround yourself with uplifting material that will help you continue your trek down the path less traveled. Timestamps

1:00 - Spring is Coming!
3:36 - Long-Term Thinking
7: 19 - Decluttering
15:15 - Tackling Social Prisons
23:10 - The Oasis
29:22 - Junk Mail and Saying No
37:30 - The Red X
40:50 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

367 | FI Number Adjustments Mar 07, 2022

In this week's episode, Brad and Jonathan unpack the problems that lie within modern retirement calculations and provide examples of how you can work around these flaws. As opposed to focusing on income, maybe it is better to learn how much our lives cost us. Expenses appear and disappear as life goes on, it is important to factor that in to your FI number!

Timestamps

1:01 - Introductions
2:00 - Listener Feedback, Permaculture, and Libraries
6:55 - Annual Expenses
14:08 - The Retirement Smile
16:53 - Addressing That FI Number
22:21 - The Pile of Cash
30:45 - Upcoming Events!
32:07 - Major Purchases For Those Entering The Workforce
41:40- Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

366 | Day 0 Self Feb 28, 2022

In this week's episode, Brad and Jonathan discuss the importance behind moment you decide it is time to make a change in your life. While making the decision to alter your life for the better is often easy, actually consistently carrying out that goal can be tough to do. We all hit road blocks, we all stray from our goals, but being able to correct your path is vital to actually changing for the better! Keep track of your progress and set yourself up to success!

Timestamps

0:00 - Introductions
1:09 - Favorite Two Days of the Year/Berkshire Hathaway
6:18 - Bumming On The Couch Story
12:36 - What Are You Pivoting Towards?
16:07 - Making The FI Choice
19:43 - Journaling Thoughts
24:54 - What Compels Change?
29:50 - Accountability
33:10 - Subconscious Guard Rails
38:10 - 1% Changes Add Up
40:45 - The Goal of Paying Off Credit Card Debt
43:10 - Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

365 | What If You Didn't Need to Escape? Feb 21, 2022

In this week's episode, Brad and Jonathan question the notion of needing to escape from your life. While we all get tired of the mundane nuances that life throws at us, we often escape these constrictions by frivolously spending money during the hours in which we own our time. Taking a break isn't the worst thing on earth obviously, but reclaiming our time and spending it with who or what we love can help erase the feeling of needing to escape from the world! Take a look outside, it doesn't look too bad right?

Timestamps

1:26- 8:28 | Introductions and Super Bowl Commercial Discussion
8:28- 10:13 | Facebook Discussion
10:13- 11:47 | What If You Didn't Need To Escape?
11:47-14:26 | The Look Outside Test
14:26- 23:20 | How We Escape
23:20-32:05 | Compounding Healthy Hobbies
32:05-41:55 | A Life Without The Need For Escaping
41:55-43:43 | Conclusion

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

364 | What's All the Hoopla About? Feb 14, 2022

In this week's episode, Brad and Jonathan fixate on many different areas in life where improvements can be made and ways you could go about doing it! Whether it's your own cybersecurity, managing anxiety, or physical health, it is important for us to take care of ourselves in order to fully enjoy the life we are setting out to live. There are easy ways to make changes that could snowball into a brighter future for you!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

363 | First to a Million Feb 07, 2022

Jonathan and Brad talk with Dan Sheeks about exactly what a 17-year-old should know when getting started on their financial journey. A detailed synthesis of this information can be found in Dan's book First to a Million.

https://www.sheeksfreaks.com

362 | Blockchain, Smart Contracts, and NFT's | Part 2 Jan 31, 2022

In this week's episode, Brad and Jonathan continue their discussion from last week about digital asset investment! This time, they are taking a deeper look into decentralized finance and different ways that you can get involved in the digital asset realm if that is something you wish to do on your FI journey!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

361 | Blockchain, Smart Contracts, and NFT's | Part 1 Jan 24, 2022

In this week's episode, Brad and Jonathan take a look at the blockchain and try to find where the actual value is within cryptocurrencies and digital asset investing. Join the guys as they define what certain digital assets are, discuss strategies for navigating the murky waters that is blockchain investing, and the importance behind not getting caught up in speculation! Remember to keep a long term mindset while working towards FI! Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

360 | A Primer for Success Jan 17, 2022

In this week's episode, Brad and Jonathan discuss different ways in which you can position yourself to experience as many positive outcomes in your life as possible. Whether it's building credit, saving, investing, education, understanding the true meaning behind the word "compounding," or really any other aspect of your life, by knowing the rules and planning accordingly you can experience success in a manner that feels automatic at times. Carefully consider the ROI that comes with the decisions you make!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

359 | SWOT Analysis for Financial Independence Jan 10, 2022

Now that you've done your beginning of the year audit, it's time to look at your finances through the lens of a SWOT analysis! In this week's episode, Brad and Jonathan examine the strengths, weaknesses, opportunities, and threats that may arise as you continue along your FI journey. By getting a strong grasp on the current state of your finances, hopefully you can begin to work towards turning your weaknesses into strengths, and your threats into opportunities!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

358 | Getting Started Audit Jan 03, 2022

Welcome to 2022! In this week’s episode, Jonathan and Brad discuss starting your year by doing an audit of your current financial situation to highlight areas in which you can improve! It is critical to know how much you’re taking home in income and what your expenses over the coming year will look like. That way you can start molding your journey to FI over the course of 2022!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI’s 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

357 | 2021 Year End Wins | Part 2 Dec 27, 2021

In our final episode of 2021, Brad and Jonathan pick up where they left off last week as they continue to listen to your end of year wins! It is truly amazing to hear about all the accomplishments our listeners met in 2021, and we hope you continue to ride that momentum into 2022! Thank you for an amazing year, and we hope the future is full of many more wins within our amazing community!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

356 | 2021 Year End Wins | Part 1 Dec 20, 2021

Happy Holidays! However, the holidays are not the only reason we are festive around this time of the year. Join Brad and Jonathan as they celebrate your end of the year wins! This episode is dedicated to all the amazing steps our community members have made throughout 2021, and we hope you continue to make strides on your FI journey as we move into 2022! Congratulations to everybody who has made progress this year and stick around for part two coming out next Monday!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

355 | Making Bold Moves Dec 13, 2021

In this week's episode, Brad and Jonathan are joined by Dominick Quartuccio from "The Great Man Within" to discuss making bold moves while on the path to bettering yourself. Although it may be inconvenient, making one bold move can snowball into a life full of adventure, self-development, and unexpected happiness! Join the trio as they discuss what can dictate a bold move, signs that you may be ready to level up an area of your life, generating ideas for bold moves, and so much more!

Dominick Quartuccio

Website: The Great Man Within
Podcast: The Great Man Within

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

354 | Navigating the Possible Vs Probable of Personal Finance Dec 06, 2021

In this week’s episode, Brad and Jonathan discuss planning your short and longterm FI goals in a manner that is realistic to your current situation. By taking an approach that favors longterm success as opposed to rapid growth, you can position yourself in a manner that will allow for luck to strike as you continue your FI journey! Be sure to plan for the probable and possible outcomes in your life!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

353 | Families Fly Free Nov 29, 2021

In this week's episode, Brad and Jonathan are joined by Lyn Mettler from "Families Fly Free" to discuss optimizing your travel rewards when traveling with family! Join the trio as they discuss different ways to utilize travel rewards programs so you can be one step closer to finally taking the vacations of your dreams!

Lyn Mettler

Website: Families Fly Free with Go To Travel Gal
Podcast: Families Fly Free Podcast

Resources Mentioned In Today’s Conversation

Travel Rewards: How To Travel The World For Almost Free (The Easy Way) ChooseFI Ep. 009

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

352 | The DIY Financial Plan Nov 22, 2021

In this week's episode, Brad and Jonathan are joined by Measure Twice Money's founder Cody Garrett! Together, they discuss important details about DIY financial planning, such as identifying where you do and don't need help with your financial planning, exercising the rational and reasonable approach when financial planning, and ways you can properly prioritize your spending! Also, the trio shares important information you should know before selecting a financial planner.

Cody Garrett

Website: Measure Twice Money
Blog: Measure Twice Money's Blog

Resources Mentioned In Today’s Conversation

Measure Twice Money's Data Gathering Checklist

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

351 | Year End Tax Planning 2021 Nov 15, 2021

In this week's episode, Brad and Jonathan are joined by Sean Mullaney to get a jump start on 2021's tax planning season. Together, they discuss managing Backdoor Roth IRAs before the 12/31 deadline, changes to the relevant tax regulations, amended returns, solo 401k's for contractors and entrepreneurs, and so much more! Listen along to see if any of the information shared can be applicable to your own tax planning this season!

Sean Mullaney

Website: The FI Tax Guy
Blog: The FI Tax Guy Blog
Twitter: @SeanMoneyandTax

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

As always, the discussion is general and educational in nature and does not constitute tax, investment, legal, or financial advice with respect to any particular individual or taxpayer. Please consult your own advisors regarding your own unique situation. Sean Mullaney and ChooseFI Publishing are currently under contract to publish a book authored by Sean Mullaney.

350 | Runaway Winners and the Balanced Portfolio Nov 08, 2021

With volatile assets like Tesla stock, Ethereum, and Bitcoin, how do you keep a level head while investing? In this week’s episode, Brad and Jonathan are joined by friend of the show Brian Feroldi to discuss managing your runaway winner investments and balancing your portfolio! Listen along as Brian shares his strategies for evaluating stocks, creating guidelines for yourself as an investor, and mentally preparing yourself for the highs and lows of investing!

Resources Mentioned In Today’s Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI’s 3-card credit card strategy
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence
Track your personal finances with Personal Capital
Compare, buy, and save big on insurance with Policygenius
Keep learning or start a new sidehustle with one of our educational courses
Slash your cellphone bill without sacrificing service with Mint Mobile

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

349 | Paper Returns Vs. Real Returns Nov 01, 2021

this week's episode, Brad and Jonathan discuss the importance of knowing the difference between paper returns and real returns. If an asset has a certain value in the market, it does not mean that said value will exist once an attempt to liquidate the asset is made! Later in the episode, they dip into the mailbag and answer listener questions about episode 332 and tax planning!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

348 | The Rules of the Game Oct 25, 2021

In this week's episode, Brad and Jonathan discuss the rules that financially dictate how we all play the game of life. Together, they point out that knowing the rules can allow you to experience the beneficial side of tax planning, maximizing your benefits, and utilizing your travel rewards! The rules may seem complicated on the surface, but once you understand them, you can start absolutely crushing your path to FI!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

347 | How Did You Calculate That Return? Oct 18, 2021

In this week’s episode, Brad and Jonathan discuss how critical it is to fully understand what the statistics and numeric values describing your investment returns actually represent. They do so by describing what compound annual growth rate is, explaining the logic behind the 4 percent rule, and by referencing helpful insights gained in previous episodes of ChooseFI! Later in the show, the guys are joined by Rob Phelan from “The Simple Startup” to discuss second generation FI, the benefits of teaching children and teenagers about entrepreneurship, and Rob’s new children’s book M is for Money!

Rob Phelan

Website: The Simple Startup
Book: M is for Money

Resources Mentioned In Today’s Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

346 | How Do I Figure Out the Taxes on This? Oct 11, 2021

In this week's episode, Brad and Jonathan examine the concept of assets and where they fit in your general tax strategy. Together, they discuss the different factors that effect how and when you pay your taxes, compare the differences between Roth IRA's and 401k's, and explore potentially beneficial ways in which after-tax investments and 401k's overlap!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

345 | The Art of the Career Pivot Oct 04, 2021

In this week's episode, Brad and Jonathan talk about the benefits behind creating the space needed in life for you to challenge yourself. While it may be tempting to relax in place with your new-found free time, you should be using it as an opportunity for growth! Who knows, you could even find yourself in a career you never thought you'd be in, making more than you ever thought you could earn! Listen along as the guys tell you the steps needed to execute a masterful career pivot!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

344 | Risk Avoidance and Deworsification Sep 27, 2021

In this week's episode, Brad and Jonathan discuss how risk avoidance can weigh down your returns in the form of opportunity costs. While your savings may be safe, you could be missing out on opportunities for your money to work on your behalf! Join the guys as they discuss the rule of 72, inflation, and diversifying as opposed to "deworsifying!"

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

343 | Firing the Haters Sep 20, 2021

In this week's episode, Brad and Jonathan are joined for the "many-ith" time by Jillian Johnsrud to discuss her new book, "Fire The Haters." Together, they dissect some of the themes from Jillian's book, which leads to discussions about overcoming imposter syndrome, taking action, acknowledging valid feedback, and identifying the difference between procrastination and preparation!

Jillian Johnsrud

Website: jillianjohnsrud.com
Podcast: Everyday Courage

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

342 | Don't Let Good Be the Enemy of Great Sep 13, 2021

When things are good, is it the right move to settle in place? In this week's episode, Brad and Jonathan discuss the nature of good, and how things being good is often the biggest obstacle standing in the way of things being great. After all, there is no opportunity for growth if you linger in a state of complacency!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

341 | Worthwhile Splurges Sep 06, 2021

In this week's episode, Brad and Jonathan discuss the benefits of slightly diverting from the FI mindset and spending more on meaningful purchases. While splurging can be a slippery slope, calculated splurging can yield large returns in terms of enjoyment, opportunity, and time!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

340 | Diamonds in the Rough Aug 30, 2021

In this week's episode, Brad and Jonathan reopen the mailbag which prompts a discussion examining the true monetary value behind collectable items, and why finding that diamond in the rough could inherently be more valuable than actual diamonds! We also hear about some fantastic wins the community has experienced, plus some insight on how to operate a high-earning lemonade stand with your kids!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

339 | Close the Loop Aug 23, 2021

In this week's episode, Brad and Jonathan dive into the mailbag and respond to listener emails! Throughout the episode, you'll hear about some of the wins those in our community have experienced, ranging from having the power to take back and optimize personal time, to 2nd graders discussing the FI movement with their teacher!

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

338 | 10 Ways to Increase Your Income Aug 16, 2021

While slashing your expenses can certainly accelerate your path to financial independence, what if it also begins to slash at your own happiness and wellbeing? In this week’s episode, Brad and Jonathan are joined by Alan Donegan from the Rebel Entrepreneur podcast, who attempts to solve this dilemma by discussing 10 ways in which you can increase your income. This way, you can still enjoy the smaller luxuries in your life while maintaining a strong roadmap to financial independence!

Alan Donegan

Website: Alan Donegan
Podcast: Rebel Entrepreneur

Resources Mentioned In Today's Conversation

Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

337 | Ordinary Sherpa Aug 09, 2021

Does settling down and starting a family really mean that your days of adventuring are over? In this week's episode, Brad and Jonathan are joined by Heidi Dusek from the Ordinary Sherpa Podcast, who firmly believes that having a family doesn't mean that your ability to adventure disappears! Heidi shares with the guys strategies that you can implement with your family to ensure you continue to exercise your "adventure muscle!"

Heidi Dusek

Website: Ordinary Sherpa
Podcast: Ordinary Sherpa

Resources Mentioned In Today's Conversation

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336 | $1K 100 Ways Aug 02, 2021

In this week's episode, Brad and Jonathan are joined by author, podcaster, and entrepreneur Nick Loper from Side Hustle Nation. In their conversation, Nick emphasizes that thinking creatively when looking to start an entrepreneurial journey can lead to a surprisingly successful endeavor. Nick also cited examples he has came across after starting his "1k, 100 ways" project, and how the right idea for a side-hustle could evolve into a full time business!

Nick Loper

Website: Side Hustle Nation
Podcast: The Side Hustle Show

Resources Mentioned In Today's Conversation

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335 | In a World Where You Can Do Anything, Why Do We Always Do the Same Thing? Jul 26, 2021

In this week's episode, Brad and Jonathan get introspective and examine the choices that everybody has laid out for them in their lifetimes. Together, they ponder why so many choose only the cookie-cutter options in life, and how taking the path less traveled can lead to happiness you never even knew was possible.

Resources Mentioned In Today's Conversation

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334 | Experiments in FI: Inflation, Gardening, and Revocable Living Trusts Jul 19, 2021

In this week's two-part episode, Brad and Jonathan provide personal examples and insight on relatively safe ways to experiment with your FI investment plan! Later in the show, Sean Mullaney joins the guys to discuss revocable living trusts and how they can fit in with the, "hard to think about," side of future tax planning!

Resources Mentioned In Today's Conversation

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333 | Unlocking Your First Mini-Retirement Jul 12, 2021

In this week's episode, Brad and Jonathan are joined by Jillian Johnsrud, the host of the Everyday Courage podcast and fellow FI guru. Jillian shares with the guys the concept behind a mini-retirement, or in other words taking an extended period of time off outside of the so called "golden years." Together, the trio discussed the benefits of mini-retirements, strategies for optimizing your time while mini-retired, and how to properly prepare for a mini-retirement!

Resources Mentioned In Today's Conversation

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332 | Transform Your Tax Return Into a Springboard for Financial Planning Jul 05, 2021

In this week's episode, Brad and Jonathan are joined by none other than the "FI Tax Guy" himself, Sean Mullaney. Together, they highlight reasons why your tax return may not be such a great thing, and the different ways you can leverage your tax planning to your own advantage!

Resources Mentioned In Today's Conversation

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331 | What Does Inflation Mean for Investors? Jun 28, 2021

Big ERN (a.k.a. Karsten) from "Early Retirement Now" makes his return to the podcast in this week's episode! With Brad and Jonathan, Big ERN gives us the lowdown on what inflation is, the role inflation plays in the world economy, and the effect inflation can have on a variety of investments!

Resources Mentioned In Today's Conversation

Start Your Journey to FI Here

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330 | Is there a Housing Market Bubble? Jun 21, 2021

In this episode, Brad and Jonathan sit down with Paula Pant, author of the ebook Escape and creator of the blog and podcast Afford Anything. As a group, the trio discuss the current landscape of the housing market, whats different between it now and 14 years ago, some tips and ticks for buyers, and whether or not the current housing market is in a bubble!

Resources Mentioned In Today's Conversation

Sign up for Paula and Jonathan's Live Event on 6/28!

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329 | The Investing Horserace Jun 14, 2021

In this episode, Brad and Jonathan take a look at popular portfolios in the financial independence community and lay down a structure of comparison for them in a fashion similar to that of a horse race! Join us during the longitudinal study to find out which of these various investment strategies is the right fit for you!

Resources Mentioned In Today's Conversation

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328 | Watch the Business Not the Stock Jun 07, 2021

In this episode, Brad and Jonathan discuss investment strategies with Brian Feroldi, a seasoned veteran of the stock market and author for The Motley Fool. Brian shares with Brad and Jonathan some insight into the current landscape of the market, why some stocks perform the way they do, and why it is important to take a look at the business behind the stock and not just the value of that company's shares.

Resources Mentioned In Today's Conversation

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327 | Where Does Entrepreneurship Fit on Your Path to FI? Jun 04, 2021

In this episode, Brad and Jonathan are joined by Alan Donegan, an entrepreneurial guru and host of the "Rebel Entrepreneur" podcast. Together, the trio discuss their own entrepreneurial journeys, tips and strategies for up and coming entrepreneurs, and where entrepreneurship could fit within your FI journey!

Resources Mentioned In Today's Conversation

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326 | Learn to Market Yourself and Your Skills in 2021 and Beyond May 31, 2021

In this episode, Brad and Jonathan take a look at the ways in which people aren't properly marketing themselves. By running through a thought experiment, Brad and Jonathan uncover skills, abilities, and valuable traits that may be absent from your resume. They also discuss imposter syndrome and how it can lead to selling yourself short. Resource from the episode: Salesforce for Everyone

325 | Credibility and Boundaries for Winning at Life May 28, 2021

In this episode, Brad and Jonathan reexamine the stages and checkpoints of Financial Independence. In our community, many people are just trying to figure out where they are on this path to FI. While every individual’s journey will be unique, when you can gamify the process, the journey can be more rewarding and enjoyable.

Resources Mentioned In Today's Conversation

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324 | The Stages and Checkpoints of FI May 24, 2021

In this episode, Brad and Jonathan reexamine the stages and checkpoints of Financial Independence. In our community, a lot of people are just trying to figure out where they are on this path to FI, and while every individual's journey is going to be unique, when you can gamify the process, the journey can be more rewarding and enjoyable.

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323 | Pump and Dump May 21, 2021

Curious about cryptocurrencies? Is it investing or is it gambling? It’s a topic the community has a lot of questions on, so in this episode we create. framework for the conversation and explore the nuances.
In the US, we generally want for nothing and true scarcity is something we haven’t recently experienced until this year and suddenly being presented with it creates some interesting psychological reactions.
It’s good to position yourself to be ahead of the game and be prepared when you hear reports of activities that might affect the supply chain. You don’t want to be doing something at the exact same time as everybody else. See trends, think outside the box, and make your moves ahead of time.
Colonial Pipeline paid to resolve their ransomware attack with a cryptocurrency, specifically, Bitcoin. Gas pumps on the east coast may be getting back to normal soon, but there’s an ongoing pump and dump issue with crypto.
The stories of insanely high levels of return from crypto are all over the news and social media, creating a sense of missing out for those who aren’t in the game. So should crypto have a role in your plan for financial independence?
For Brad, cryptocurrencies have always felt like pure speculation, which is the hope that you can buy it and then sell it later to someone else for more money. Although he is leery of all cryptocurrencies in general, he is interested in learning about the entire sphere of crypto because of all the innovation with decentralized finance and potential for smart contracts and NFTs.
Although Brad believes there could be work-changing potential, he knows he’s not knowledgeable enough to know what it will look like or pick a particular company or cryptocurrency.
Bitcoin was the first cryptocurrency to experience mass adoption and the most valuable on a per coin basis. Its value has increased ten times in the last year alone and yet it isn’t the crypto with the highest rate of return.
At its core, Bitcoin is code. While only 21 million of the coins will ever exist, because it is code, it can be cloned or forked to add new features. There’s nothing magical about it that makes it worth $40,000 or $60,000 per coin.
There are close to 10,000 different cryptocurrencies all with unique features and various values. Some have done well and some have done insane, but without the benefit of hindsight, you don’t know which are yours.
It’s important to understand the different parameters that drive the value of a coin, what a pump is, and how they can run in parallel to affect the price.
In contrast, investing is when you buy an asset of known value and it produces a return of some regular amount over a period of time.
There are some who state Bitcoin is digital gold. When asked his thoughts on gold, Warren Buffet said that he had no idea where it would be in five years but he knows it won’t do anything between now and then except look at you while Coca-Cola and Wells Fargo will be making money. He would rather invest in something that can produce.
Jonathan notes that while we are all on the same path directionally, we aren’t always going to agree. Though it’s true gold doesn’t produce anything, he sees it as an excellent store of value and has been more open to gambling on the Doge cryptocurrency.
Gold has increased in value over the years, not because it produced anything but because the dollar has lost value to inflation while gold has held its value. The same argument could be made for crypto due to the limits on the number of coins.
Unlike physical gold, crypto is a lot easier to store, liquidate, transfer, and transport.
Cryptocurrencies have value because we say it has value. Although Brad believes the use cases are still small, he’s open to learning new information.
In Episode 099 of the podcast, Michael Peterson discussed his non-profit in El Salvador. The use of Bitcoin there has cut down on friction and the fees for sending money from the US to El Salvador.
Crypto is different from gold though because it is code and we don’t know what it will look like a few years from now. For instance, there are six different versions of Bitcoin.
Bitcoin takes a lot of energy because of its mining concept for its transactions. All of the Bitcoin mining around the world takes up more energy than the country of Argentina. Other coins use no energy, so Elon Musk has said Tesla will look for cryptos that use less than 1% of the energy of Bitcoin.
Crypto as a store of value use case has not been proven out yet. Gold, unlike cryptos, has a long history as a store of value and is less like to disappear from our memories like Blockbuster.
DogeCoin started out as a joke and has grown to a total value of $54 million whose value can move up or down dramatically just based on a Tweet from Elon Musk.
Last November, Jonathan put $150 into DogeCoin when it was $0.009 a coin. When he looked at it again recently, the price was in the neighborhood of $0.40 a coin.
There are 130 billion DogeCoin and unlike Bitcoin, they can make more. since it uses less than the 1% of the energy Bitcoin does, Elon Mush began Tweeting about it and pumping the price of DogeCoin.
Because he didn’t see a use case for it or think the value of DogeCoin would increase dramatically again, Jonathan sold it before it lost value to an Elon Musk Tweet.
Brad thinks that Jonathan looked at it the right way because he viewed his DogeCoin purchase as gambling. Unlike owning shares of an actual company that can be used to calculate a company’s market cap, crypto is just code. DogeCoin can and does just make more.
After selling his DogeCoin, Jonathan took $1,500 of the money to invest in another energy-efficient coin with similar features, running on a secure network, with a 10 billion coin lifetime limit. That coin skyrocketed and he sold it before it later came back down.
Cryptocurrencies are susceptible to pump and dump. Jonathan felt a need to do this show not because he’s a genius with crypto, but because others are potentially losing massively, like whoever bought his coin.
Anyone can create a cryptocurrency and begin selling a smaller portion of it on social media, building the hype around the coin and pumping up the price. The value increases dramatically, the creators and the early adopters begin to sell and deleveraging their position and let the coin die. As they dump their coin, those who bought to the top lose their shirts.
Some of these pump and dump scenarios are scams from the creation, but sometimes good coins get pulled in and pumped by a group trying to control the market.
Jonathan sold his coin when he found out 80% of the coin was held by just two addresses and the rug could be pulled out from under him at any time. Although he made money, his success is not replicable.
There is a case to be made for gambling as entertainment. You just need to go in knowing that there is a high likelihood that you are walking out with nothing left.
Brad believes in the decades to follow a couple of winners will emerge and their technology will change the world dramatically. You can prepare for it by educating yourself.
Speculation can be a continuum. It can be high-risk with varying levels of confidence and potentially high levels of return.
For cryptocurrencies, Jonathan likes those with a pre-mined amount, are energy-efficient, have liquidity and a lot of partnerships, have utility, play nice with banks and adhere to anti-laundering and anti-terrorism laws. He also believes that while these were created to exist outside of regulation, regulations are coming.
When taking everything he’s learned about cryptocurrencies into consideration, Jonathan can decide on what cryptocurrencies to purchase that is more calculated than pure speculation.

Resources Mentioned In Today’s Conversation

ChooseFI Episode 099 Generous Giving on the Path to FI | Michael Peterson

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322 | Financially Bulletproof in a Pandemic May 17, 2021

Dennison, a member of the FI community and recent Salesforce success story, joined the guys today for a special interview. He expressed to us that being adaptable and willing to change your world viewpoints on the fly (especially in the face of the COVID pandemic) has allowed him to achieve great financial and personal success.

Resources Mentioned In Today’s Conversation

321 | Discovering the Power of FU Money May 14, 2021

What You’ll Get Out Of Today’s Show

Picking back up with our ChooseFI Households of FI family, Zach and Marilyn to hear about all of the incredible progress they’ve made since their last episode.
Like most people, the last year has turned Zach and Marilyn’s life upside down, only their’s has been positive. Following their conversation with Paula Pant in Episode 247, they were felt encouraged to move forward with a real estate investment when the numbers made sense rather than waiting for a property that met all the specific criteria.
Within two months of their conversation with Paula, they purchased the home they are currently living in. Since then, they have put money in renovations and just rented out the basement apartment.
Although the original plan was to do a live-in flip, they are now house hacking after taking out a mortgage with a 2% interest rate thanks to their excellent credit, making their new mortgage the same as the mortgage on their previous home that was half the size. Plus, the basement apartment rent is covering the entire mortgage and then some.
Zach finished school in 2020 and began working in his field earning a good raise. Rather than let the raise inflate their lifestyle, Zach put the entire raise into his 457 plan.
Between saving more than $1,000 a month on a mortgage and putting $1,000 a month into a 457, Zach and Marilyn have created more than $24,000 of space in their financial lives.
Although five years ago, they never would have dreamed of being in their current position, they attribute frugality and long-term planning for their success.
Being on the path to FI feels so good that it’s something Zach talks to people in his everyday life about. He thinks if you adopt the long-term mindset and stick it out during the first five or six years, seeing the end from the beginning becomes less overwhelming.
Marilyn says that not having debt hanging over their heads has improved their quality of life a hundredfold. While it did take them six or seven years to get there, it wouldn’t have happened at all if they hadn’t taken that first step.
In looking toward the future, they have created FU money, which they’ve already reaped the rewards of. When Marilyn’s employer told her to come back to work 100% after successfully working from home during the last year, she decided to quit rather than put her kids back into daycare.
Jonathan appreciates the power of no and says sometimes when you can say no to your employer, it puts you in a position of power where they might be willing to negotiate.
Zach and Marilyn’s have no mortgage payment, drive paid-off cars, and have an abundance mindset that allows them to live off around $30,000 and want for nothing. In fact, Marilyn uses a hack from Brad and uses an Old Navy credit card for their spending, and earns points to buy clothes for his kids.
In comparison, most other American families spend $30,000 on just shelter and car payments.
When leaving previous jobs, Marilyn always felt a bit of panic, wondering how they would make things work, but with living expenses taken care of, they were in a different place. She felt none of that panic.
Zach grew up without a lot of money and a scarcity mindset. When interacting with people who were well off, he often felt if that person was wealthy that he couldn’t be. The path to FI has been a mind shift to understanding that everybody can win and to a level of empathy.
What’s next for Zach and Marilyn? Since they are saving more money than ever before, they are interested in optimizing what they do with it. They have considered more rental properties, but prices are high and inventory is low. Index fund investing is another option.
Prices are high in their area and they looked into renting out their current home, but it doesn’t meet the 1% rule. They would need to geo-arbitrage a second rental.
If they were to purchase another property, the downpayment would likely come from an old 401k of Marilyn’s. Zach has looked at rolling it into a self-directed IRA for real estate.
Since Marilyn left that employer her 401k is with, it should have triggered the option to roll it over to an IRA without creating a taxable event as long as she follows her plan’s rules.
They also have an interest in diversification, but with the real estate market so high, they want to have cash on hand to make a move if it dips. And if the stock market does something crazy, Zach and Marilyn want to be prepared for it.
They want to invest, just with a shorter time horizon, so they need to invest somewhere with less risk.
Jonathan says they need to invest like a 55 or 60-year-old. They can achieve that with investments that provide either income stability or a negative correlation.
They would love to be able to pay for their next property with cash, but they don’t know when the next deal that makes sense will pop up. It could be anytime in the next five years and ideally, they would like to have at least $75,000 saved up for it.
Although Zach and Marilyn want to do what’s the most optimal with their money, Brad says it really should be what they are comfortable with. Investing in real estate isn’t for everyone and may provide comparable returns to the stock market. They should keep communicating and figuring out what works for them at the moment as it’s impossible to predict where they will be in five years.
Jonathan thinks it won’t take long to reach financial independence. With annual expenses of just $30,000, they will need $875,000 to hit FI. With $80,000 in investments and adding $1,500 to it each month, they will have $229,000 in 5 years. In ten years, they will have $451,000, and in 15 years, it will reach $783,000 if nothing else changes.
Future raises, additional rental properties, or Marilyn returning to work can only speed their path to FI. Both Brad and Jonathan believe they can achieve FI in 10-12 years.

Resources Mentioned In Today’s Conversation

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320 | How Many Days a Month Do You Experience Stress Related to Work? May 10, 2021

The nature of work has drastically changed over the last year. Has its impact on you been negative or positive? And does that impact your choices on the path to financial independence?
As a result of these changes, how we do work is something we can now question and work to make it align with how we want our weeks and months to look like.
The concept of a Red X month is something first introduced to us by Vincent Pugliese and one that has been sacred to the Barrett Family. Brad puts a big red X through the month of August each year so they can spend the month doing whatever they want. The ability to do that is a benefit of FI.
In order to spend more time with family, this summer, the show will move from its standard two shows a week format, to just once a week.
What is your why? Brad says the words “enough” and “balance” pop into his head. We are driven to get to the point of financial independence but it can sometimes be difficult to find balance or understand when it’s enough.
Success isn’t how much money you have in your bank account or how high your savings rate is. It’s having balance and living a life by design.
Jonathan is reminded of a phrase, “What got you here, won’t get you there.” All of the work that goes into earning more, spending less, and optimizing the difference puts you at risk of losing sight of your why. At some point, you need to wind it down and step away.
The one-more-year syndrome where you worry you might not have enough comes from a scarcity mindset. It can be easier and less scary to keep doing what you are doing. The hard work is psychological and needs to be contemplated years before leaving work.
You can start doing the work ahead of time by starting small and experimenting. Jonathan doesn’t know that he would be good at vacations. He’s always thinking about something related to this community or Talent Stacker. He realizes that comes at the cost of missing out on spending quality time with his family and his life may be out of balance. He thinks Brad is probably better at handling the contentment side of things.
Many of us feel like if we aren’t actively trying to advance that we are failing. When you are in a position of strength and know what you value and where you can provide value, you can design a work life that works for you.
A lot of employers are looking at how they can save money with less physical real estate. You have the chance to be a squeaky wheel and present your employer with a work proposal and provides them with an ROI they are looking for.
Work is not always going to be stress-free. Where does it cross the line from reasonable to toxic?
Brad thinks he feels stressed more than he should for his overall level of stress, but that it’s because he is out of balance. He suspects it’s due to a feeling of only being half there and a constant feeling of guilt.
Life isn’t perfect and neither are we. We need to have some self-compassion, realize our issues, and try to get a little bit better every day.
If you conduct a root cause analysis on your stress, you can figure out a way to solve it.
Jonathan says that his pharmacy job was a former source of stress because it didn’t meet his needs for autonomy, mastery, purpose, identity, and connection. Having FU money enabled him to leave it behind to pursue ChooseFI instead.
Knowing what your options are is one way of dealing with a toxic work situation. You can start by testing small and doing things to make your life a little bit better.
You don’t need anyone else’s stamp of approval anymore. It’s not necessary to go into debt to start a business and there’s never been a better time to start learning for free.
Balance has characteristics that are identifiable. It feels like you are in control of your time and you are able to allocate it where you want. If you have autonomy, mastery, purpose, identity, and connection, you should be able to control your time.

Resources Mentioned In Today’s Conversation

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319 | Make Your Kid a Millionaire May 07, 2021

What You’ll Get Out Of Today’s Show

Do you want to give your children the tools they need to guarantee their path to financial independence? If you give them the right skills, becoming a millionaire can be a mathematical certainty.
Achieving the objective of becoming a millionaire isn’t nearly as important as the process of getting there. Success is in the journey.
For many of us, we made a lot of mistakes before finding the right information and learning that there is a better way.
When you understand the power of compounding, you know how plausible it is to become a millionaire, and what you need to put away each month to get there.
Much of the journey comes down to mindset, empowerment, and believing that you can make changes to better your life. It starts with the little changes that make your life 1% better.
It’s time to stretch the tactics we use and apply them to a different age bracket. We generally talk about investing timelines starting around the age of 20. But how early could you really get started and why would you want to get started at an earlier age?
For Brad, the reason is dual-pronged. He thinks the concept of saving for retirement is misdirected and he would frame it differently. Retirement is so far in the future, it’s harder to get behind during your younger years. However, the concept of financial independence is something people are more willing to take action on.
Financial independence means you can control your time and have the autonomy to make decisions and you can take advantage of retirement vehicles such as 401Ks and Roth IRAs to reach FI.
Financial independence is a better framework for talking about and planning what it is you want to do with your life as well as giving yourself options.
The Make Your Kid a Millionaire article emphasizes Roth IRAs. Bradd says there has never been a great explanation of how people can take advantage of a Roth IRA for children who have earned income.
Most children don’t have jobs that allow them to contribute to a 401K, 403b, or 457. A source of earned income does allow them to make after-tax contributions to a Roth IRA where that money can grow tax-free forever.
A 12-year-old will have 47 years of compound growth before making withdrawals. All of the growth, dividends, and capital gains distributions will be tax-free compared to an investment account where they would be taxed.
The current limit for Roth IRAs is $6,000, but you may only put as much of that limit in as you have earned. A child earning $5,000 in a year would only be able to contribute $5,000, not the $6,000 limit.
Although ChooseFI doesn’t generally suggest the Roth IRA as the first investment vehicle to use, the strategy is different for children.
For adults, some financial independence strategies help to control your marginal tax rate using specific pre-tax retirement accounts.
When adults are in a low marginal tax bracket, an argument can be made for locking in the low tax rate with Roth contributions.
However, children with much lower incomes, already have low marginal tax rates. Since they can generally only choose from traditional or Roth IRAs, it’s likely in their best interest to pay the small amount of tax and then shelter that income from taxes for the rest of their lives.
Although allowance and pay for chores around the house don’t count for earned income, there are some categories of work kids may do that do count but you’ll want to be careful documenting, such as newspaper routes, babysitting, mowing lawns at other people’s homes, acting, photography, acting, modeling, or working for a parental-owned business.
Regular jobs at private or public companies that comply with your state’s child labor laws definitely count as earned income.
In the article, an example used discusses a child who mows lawns and earns $4,000. His parents decide to contribute $3,000 to a Roth IRA. The contribution does not need to be made with the exact same money the child earns. Parents or grandparents could make the contribution as long as it does not exceed the earned income or IRA contribution limits.
Matching programs are a great way to teach financial lessons. Similar to a company 401K match, parents or grandparents could incentivize a child to contribute to their Roth IRA by agreeing to match contributions dollar for dollar, or two dollars for every one.
If a 9-year-old were to put $3,000 into a Roth IRA once, never contribute again, and not touch it until the traditional retirement age of 64, that child would have almost $124,000.
With the power of compounding, a child needs to contribute just $1,500 each year of their lives to ensure a million dollars at a retirement age of 64.
In contrast, someone waiting until the age of 31 to begin investing and maxes out their Roth IRA with $6,000 each year until age 64 will only have $764,000. The difference between the two net worths is the result of the powers of compounding and time.
The Rule of 72 is a way to predict how many years will take your money to double based on an interest rate. You take the number 72 and divide it by your interest rate. 72 divided by an interest rate of 7% results in money doubling roughly every 10 years. Compounding on a big number adds up quickly.
A child could theoretically put in a large amount for just a few years, never contribute again, and end up with a higher net worth than with the $1,500 each example.
The article contains different scenarios to help foster the conversations parents can have with their children about the impact time can have.
Break through the initial resistance to get started and set up a system to reinforce good financial habits so that your child can build their own trust fund.
It’s hard to put a price tag on the psychology of teaching your kids about investing early. They will have a better foundation and desire to learn and get even better. It’s good to teach them the time value of money while they aren’t relying on it to pay for their survival needs.

Resources Mentioned In Today’s Conversation

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318 | 100 Ways to Get 1% Better May 03, 2021

After four years of talking about the aggregation of marginal gains and the idea of getting 1% better, ChooseFI has accumulated quite a lengthy list you can stack together.
If you can invest a little bit of time to fix something, you’ll never have to invest that time again. Brad recently decided to move away from paper files and bills to join the digital age, while Jonathan has been using a subscription service to stop the paper junk mail sent to him.
Chris Hutchins shared a final hack with Brad after the end of the last episode that didn’t make it into the recording. Chris uses a browser extension to view book availability at his local library and borrow or place a hold on it.
Brad and Jonathan selectively pick from the list of 100 ways to get 1% better with your finances, starting with #3, Reading (or Listening) to One New Finance or Investing Book Each Month. Jonathan thinks this tip could be expanded to include non-fiction books that improve you in some way.
#4 on the list is to learn a new skill. It could be for obtaining background knowledge, gaining a marketable skill, or simply for interest’s sake. Although complacency can be seen as a bad thing, don’t mistake complacency for contentment.
Other tips include getting outside to exercise or try a new hiking or biking trail every week. Mix things up. There is a never-ending stream of free YouTube exercise classes to choose from.
Are you aware of your local FI group? While COVID has kept us physically apart, we are coming to the other end. You can invest in your local community.
As for dealing with debt, Brad says you need to sit down and be honest with yourself. Understand what you owe, who you owe it to, how much you make each month, and how much you spend. If you spend more than you make, you need to stop right now, and at least get to the point where you aren’t adding more debt.
Once you get to that place, Jonathan says you can look for ways to optimize your debt payoff, such as zero balance transfers. And then work to improve your credit score by putting a system in place, like autopay, to ensure you never miss a payment.
If you do not have $1,000, you don’t need an emergency fund, you need a crisis fund. You need $1,000 that doesn’t have a bill attached to it that you could draw on in a crisis. Once you have that, then you can think about building an emergency fund. Use your tax refund to establish your crisis fund.
Next, don’t give the government an interest-free loan and work it so that you don’t get a tax refund. The opportunity cost of having the government hold your money for a year is potentially big. When financially responsible and on the path to FI, you don’t want a big refund. You want to be saving and investing it all year long.
You can learn to do just about anything on YouTube, especially do-it-yourself home repair tutorials that will save you money. Even replacing your incandescent bulbs with LED is easy to do and saves on energy costs.
While lowering your hot water heater temperatures and adjusting the thermostat won’t make you wealthy overnight, stacking these tips with others is the whole point of getting 1% better.
Declutter your home and donate or sell items to simplify your life.
Owning a car costs a lot. Trying to manage the payment for a new car every 5 years versus buying a car and driving it for 15 years can have a dramatic impact on your path to FI. The one decision to drive a new car for 15 years, made just three times over an adult’s lifetime can result in a $742,000 difference.
If you can stack car ownership savings with other money savings hacks on food, or housing, it can mean a difference of multiple millions.
It doesn’t need to be about deprivation but just doing a little better than average to end up with millions more than your counterpart who is drifting through their financial life.
#33 on the list is to shop your car insurance every year, which Brad extends as something to be done with all your insurance policies. Make it a yearly “to do” task.
Unfortunately, companies don’t incentivize customers to stay, they incentivize customers to leave other companies to come to them. Even if you don’t want to switch, at least try and negotiate a better price. There are even companies who will do this for you.
There are a few ways to optimize healthcare, such as using a high-deductible health care plan with an HSA, prescription discount tools, and locking in medical service prices with websites, such as MDSave.
The health benefits of focusing on exercise and healthy food choices can not be overstated. 80-90% of the treatment modalities would go so much further if stacked with a healthy diet and lifestyle.
To keep food costs in check, Brad and his wife, Laura, try to anchor themselves to a $2 per person per meal goal. Laura has even curated a series of healthy recipes that fall within that cost.
Everything is negotiable. When Brad had a recent medical procedure, he simply asked if there was a pay-in-full discount and received a 30% discount.
Saving puts money in your pocket, and so does earning more money. There’s never been a better time for a side hustle.
CampFI’s are back! Brad will be attending the mid-Atlantic CampFI over Memorial Day weekend.

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317 | All the Hacks | Chris Hutchins Apr 30, 2021

Life gets busy when you have a new baby, so Chris Hutchins is on a quest to learn all the hacks, optimize his life, and share what he’s learned with you in his new podcast, All the Hacks.
The goal of the podcast is to help listeners upgrade their lives by living more exciting, fulfilling lives without spending a lot more money and optimizing it all along the way.
Life hacks tend to fall into one of three camps. It clicks with and becomes second nature, you find a way to automate it so you don’t even have to think about it, or it’s too much work and you never do it again.
If you can find where optimization and excitement intersect, it’s a huge win for you and your family.
When Chris thinks about life hacks, he thinks about different aspects of his life and what the important parts are, such as family, work, finances, shopping, travel, and self. Categories may also be broken down into multiple subcategories.
Jonathan says the idea of life hacks and living his life in a slightly more optimized way is what led him to financial independence which he says is the ultimate life hack as it helps us reclaim our most precious non-renewable resource, our time.
Coming out of a year of lockdown, it seems like everyone is planning to travel somewhere. Chris recommends using Google Flights to get quick insight into flight prices with flexibility on airports and dates.
For hotel planning, Chris says it’s often a choice between a better price or a better experience. Trip Advisor recently launched Trip Advisor Plus, a paid membership service that allows them to offer hotel rates around 7-8% off because the rates are not available to the general public. However, booking directly with the hotel will likely get you a better experience.
In addition to booking directly, reaching out to someone on the sales team or the general manager will often get you an upgrade or some sort of amenity. You may be able to find the names of individuals by seeing who is responding to reviews on Trip Advisor. Having status with the hotel can help as well.
A family life hack Jonathan and his wife began doing is creating a shared family photo library and build a slideshow of their favorites from the year.
Brad believes another life hack is just being a good person and making personal connections because it makes others want to go to bat for you. A lot of customer service reps have the discretion to do things for you that they wouldn’t if you get angry with them.
Website account hacks are becoming more commonplace and passwords are frequently stolen so using the same password for everything can be trouble. Check to see if your account has been part of a data breach at Haveibeenpwned.
A password manager makes it easier to use unique passwords for all your accounts. Increasing security with two-factor authentication helps make your accounts even more secure.
Chris has a fireproof box in his home where he keeps important documents and the one password he uses with his password manager 1Password.
In the event of death or incapacitation, a legacy binder has all the information loved ones need to manage your affairs.
As mentioned on the show previously, Brad uses ToDoist to track all his tasks. Chris says that you can’t use any software system like ToDoist for an hour and see the magic. Commit to it.
When it comes to renting cars, Chris rents with Avis using a Costco discount. He says to make sure if you’re a member of something, you find out if they have deals for you. Autoslash and Turo are additional ways to possibly save money on rental cars.
Chase and American Express credit cards have offers to save many when using their cards.
Listener Jessica asked about life hacks for type A career women and mothers on the path to FI. Chris thinks there is power in being incredibly passionate about a company you want to work for. He also says you can negotiate your salary all of the time especially if you present data that you are being underpaid.
Before having their baby. Chris was able to find almost half of the items on their baby register in the second-hand marketplace, which allowed them to have everything they wanted and not skimp out on their savings rate. Similarly, Brad’s wife Laura is able to plan ahead for the future and buy seasonal clothing for their daughters at tremendous discounts.
Another life hack, meal planning, is something that Chris and his wife just purchased for introducing their baby to solid foods. He says there is a bare minimum of what your time is worth. While they could have done it for free, buying the meal plan freed up a lot of their time making the cost worth it.
Jonathan says for baby clothes, his wife was able to make out like a bandit using local buy nothing groups. Plus, she has been able to arrange a neighbor exchange to keep kids in clothing as they grow. And within their home, they rotate toys to keep them interesting.
Another resource Jonathan has for Jessica is Dour and Carol’s book, Raising Your Money-Savvy Family, while Chris recommends moms’ groups, who share information and recommendations with each other
Chris says meal planning is his biggest hack when it comes to cooking. He uses Paprika to save recipes, meal plan, and grocery shop.
Steven Boyer from CampFI recommends if you cook something often, keep all of the items you use physically together. Brad used a little hack like that to remove the pain points he was experiencing make his morning smoothie prep go more smoothly.
Holly says if you have a separate freezer, you can buy meat in bulk when they are on sale and then have them whenever you need them.
Although Jonathan and his wife tried once a month meal prep, they have moved to cooking two to three meals a week and eating leftovers. Chris says he intentionally scales his meal sin Paprika up so that they have leftovers.
Brad likes to reduce the paradox of choice by eating the exact same meal every day for breakfast and needs a system for lunch.
To reduce her paradox of choice and frustration, Leslie created a capsule wardrobe for her closet by pretending she was packing for a three-week trip.
Chris has been culling his wardrobe by separating the clothing he has worn and washed from what stays in his drawers. The things that have remained in the drawers he can get rid of.
Karen’s daughter hates the idea of college and has an entrepreneurial mindset. Chris says there are so many opportunities to learn these days but the hardest thing is to tangibly identify something you can do.
Get experience. Starting something doesn’t mean it has to be your full-time job. You can explore the entrepreneurial side while doing something else. Learning new skills is valuable. Try a bunch and see what lights you up.
You don’t need to go to college anymore to earn an above-median income which is something he discusses in the Talent Stacker podcast. Jonathan and Bradley Rice built a job placement program around Salesforce which might be something Karen’s daughter would be interested in.
Chris says automation is magical and one of the things that drew him to work at Wealthfront was financial automation where he works on automation that directs your money where you want it to go automatically.

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316 | Is Your Pension Healthy? | Grumpus Maximus Apr 26, 2021

Back in another installment of ChooseFI’s Households of FI series are Troy and Lindsay.
In episode 241, Brad helped them calculate their FI number, but Lindsay is a teacher with the potential to earn a pension. In this episode, they touch base with Grumpus Maximus to discuss the health of their pension.
While the conversation is geared toward the health of the Virginia Retirement system, others who are eligible for pensions will learn where to access data about their own pensions and interpret it to assess its health.
Linsday is 32 and in her seventh year of teaching under the Virginia Retirement System. Troy is 34 and an IT professional working on government contracts and does not have access to a pension. Troy and Linsday have a young son.
Grumpus Maximus is a retired military officer who lives in New Zealand with his wife and two kids. Grumpus experienced a post-traumatic breakdown around year 16 of his military career that had him calculating whether or not it was worth staying in the military for the additional years required to earn his pension.
Many defined benefit plans these days have different levels because they are so expensive. The Virginia Retirement System (VRS) has 3 options, 1, 2, and a hybrid plan. Linsday is on option 2.
Both COVID and having their son have had Troy and Lindsay thinking about the future of their careers. The possibility of working from home or retiring early were things they began to consider, but the VRS’s calculators would allow Lindsay to play with numbers to look at retirement before the age of 58.
After some investigation, Grumpus found that 30 years is the standard full vestment period, but partial vesting is reached at just five years, although it wouldn’t pay out until also reaching the minimum retirement age.
Option 2 appears to be tied to the social security retirement age, so taking it earlier likely results in a reduced benefit.
Lindsay wants to understand how to calculate what her pension would be. Grumpus says there is a way to calculate it but warns that doing it this far in advance will require a lot of assumptions.
The retirement budget Troy and Lindsay are shooting for is around $4,000 per month. They can go online to calculate the pension amount and then see how big the gap is. The smaller the gap is, the more valuable the pension is.
Lindsay’s pension has a COLA which hopefully negates inflation and makes her pension more valuable and allows her pension’s purchasing power to remain the same.
The VRS pension also does not replace social security, so she will have social security income coming in as well.
Her pension also has other earned pension benefits (OEPB), like life insurance, health insurance, and the option of survivorship.
The Grumpmatic method of calculating a pension’s worth includes a pros and cons list, which includes pension benefits, but also personal issues. It takes into account the non-mathematical considerations, such as happiness, job satisfaction, and potential changes to the pension system.
He encourages everyone to write the list down on paper to create a physical record of why the decision is being made because it shouldn’t be purely a numbers-based decision.
When asked about how Grumpus and his wife came to the decision that they did, he said several factors played into the decision. It was a transition for his wife to go from career to full-time parent wasn’t easy. They even had marriage counseling.
Troy had trouble even finding information on Lindsay’s pension. Grumpus says because he’s been looking t pensions for so long, he knows what to look for. In addition, Boston College runs The Center for Retirement Research and has a public plan database with most of the major state and city plans in it.
With Public Plan Database, you can get an overall view of what the pension plan looks like. It also compares the plans to national averages which can give you an idea of the overall health of your plan.
Virginia’s plan is not fully funded for all current and future obligations, which is pretty much average. Very few public plans are fully funded. An accounting change in the late 90s also changed many pensions from 100% funded to underfunded and then the market crash from the .com bubble didn’t help. Most plans have steadied since then at around 75%.
The American Academy of Accuraties came out with a paper stating that there is a myth claiming anything funded at 80% is well off and won’t have issues in the future. It’s better to look at the trend lines for the last five years. If they have been going down, there is cause for concern.
Grumpus warns that all the funding spent on COVID this year may impact pension funding. If states skip paying into plans, it will need to be rolled into future payments. That is shown in the database as ARC payments.
In Lindsay’s pension plan, she is accruing cash that she could roll over with the interest into an IRA after five years of service. Grumpus says that goes in the pro column for leaving since she could take what she’s earned with her, but he says there are very few cons to her system overall.
The VRS pension uses a formula based on age, the number of years worked, and average annual salary. There is a multiplier for every year worked of 1.7%. Payments will start right away if she works to full-retirement age.
Concerning health insurance under VRS, credits are accrued for the length you stay that contribute to a subsidy. If you leave, you won’t keep that.
Because of the COLA, it makes for an easier pension calculation, but there’s no magic equation to spit out a yes or no answer. The goal should be to have a fully-formed decision.
While she is enjoying teaching from home, Troy and Lindsay are considering a second child which could change how she feels. Grumpus says the advantage is that they don’t have too much time invested into the pension yet.
Teachers have other ways to invest money, such as 403bs and 457s. Lindsay could be doing those in the meantime to give herself flexibility.
People who have pensions need to make some real in-depth considerations from both a financial and psychological perspective. Not every decision comes down to money. You have to decide what works best for you.

Grumpus Maximus

Website: Grumpusmaximus.com

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315 | Is This the Golden Age of Investing? Apr 23, 2021

In last week’s Facebook Live episode with Frank Vasquez, he pointed out that we are in the Golden Age of Investing. In this episode, we explore what that means and if we appreciate how good we have it.
In an ideal world, we would all like to maximize investment returns while reducing volatility. Holding uncorrelated assets helps to prevent catastrophe.
But what is the goal of investing? Although it’s a broad question, Brad believes the ultimate goal is to accumulate wealth. Investing itself is a very broad term, but it is essentially when the money you have saved is working to produce additional income for you.
Financial independence is getting to the point when you have saved and invested enough to get to the point where working can become optional.
In the last 20-30 years, investing has become fundamentally easier. Even Brad’s first investing experience 20 years ago under the old system was a negative one, where he and his lack of knowledge were taken advantage of by an unscrupulous advisor. Back then, you needed an expert to help you invest money and paid dearly for it in the form of fees.
When many of us think about saving money today, it is through a savings account or certificate of deposit where the bank holds your money and pays you an agreed-upon interested rate in exchange for being able to loan out your money at a higher interest rate. Based on current interest rates, it would take a very long time to make a meaningful return on money invested in this way.
A more aggressive form of investing would be owning shares of a company’s stock and the value increases as the company become more profitable.
Bonds are where a company, the government, or other entity raises capital by selling debt. You buy the debt and are paid back with interest.
Mutual funds are yet another investment that first came about in the 1920s, but mutual funds really rose to fame in 1975 thanks to Jack Bogle when he created the Vanguard First Investment Trust. It was game-changing for modern-day investing.
With mutual funds, you own a little piece of many different companies with one investment. In the case of an S&P 500 index fund, you would own a little bit of the top 500 largest companies, although it is cap-weighted, meaning you own disproportionally more of the largest companies and less of the smaller.
The index funds approximate the market and so you don’t need to pick individual stocks to invest in, which is good since we tend to do so poorly at stock picking both on the information and behavioral side.
Owning a single stock is a risky position. If something goes wrong, the investment can become worthless and your money is gone. You can mitigate that risk by diversifying your investment across multiple companies.
Jack Bogle changed the game in 1975 when he decided you didn’t need to pay for experts to put together and manage mutual funds comprised of hundreds or thousands of companies. Computers could use an algorithm to manage a fund designed to track a particular index. He predicted you could get a better return from owning all the winners and all the losers and keeping the fees rock-bottom low than with an expert team picking stocks.
Although the entire investing industry laughed at Jack Bogle, after 25+ years of data, the results show Bogle was right. The process dominates over one of actively picking stocks, especially with a timeline of several decades.
Today, in the index fund space, there has been a continual race to the bottom when it comes to lowering index fund fees and the expense ratio today has been cut by a factor of 10 or more.
Something ChooseFI has discussed over and over again is how much of an impact fees can have on your investments. An extra 1% fee can lower your net worth by as much as 30-50%.
It’s because index funds with expense ratios of 0.04% or lower that say this is the Golden Age of Investing. It’s no longer necessary to pay 0.75-1.5% expense ratios or 5% front-load fees.
In addition, changes to the tax code have made it possible to control our tax rate. In 1974IRAs became available, followed by 401Ks in 1978, Roth IRAs in 1997, HSAs in 2003, and 457bs in 2010.
These investment vehicles allow us to control our tax rate and save for financial independence. With the exception of Roth IRAs, all of the other accounts are pre-tax, so that every dollar going in reduces your taxable income.
Some couples may even be able to reduce their taxable investments by $78,000 if they have access to both 401Ks and 457bs and max out their investments, possibly reducing their taxes to 0%.
Investing on your own today could not be easier. It can be done on your own, online, in about 15-20 minutes. Even better, you can automate your investing and send over an extra you have when you have it.
The barriers to entry are also lower than ever before. You don’t need to have your money sitting on the sitting lines until you have accumulated enough to invest. You can start with $10 or $20 and invest in Exchange Traded Funds (ETF) if you don’t have enough to meet the minimum investment for a mutual fund or even buy fractional shares.
Brad has his finances on autopilot even if it is suboptimal. He suspects many of these new companies are moving toward a system where everything is connected, will be able to optimize everything, allowing customers to keep anything extra invested.
Jonathan believes making investing seamless is magical. Using dollar-cost averaging as an example, it guarantees a mathematically favorable average price for your investment.
Brad thinks the most obvious benefit is behavioral. You don’t need to think about when to buy or what the market is going to do. Our brains screw us up with investing more than anything.
There are a few other forms of investments, outside of stocks and bonds. Real Estate Investment Trusts (REITs) are basically mutual funds for different types of real estate, or ETFs made up of stocks in different types of commodities. Investing in a business, crypto, collectibles, NFTs, art, or single commodities are all other options.
Speculation and investing can be conflated terms, but they are different. Speculation is not based on the fundamentals of a company or asset.
Last Fall, Jonathan bought $200 worth of DOGE and just sold it for $5,000. While the gain is real, his purchase was entirely speculative.
He remains skeptical of cryptos in general but sees where there may be value in cases where a problem is being solved, such as XRP and Swift.
With any investment, you don’t want to be the one left holding the bag. Know what your risk tolerance is, what your timeline is, and what your goals are.
With buy and hold investing in large swaths of the market, you don’t have to worry about whether or not you have the winners or the losers. The market is self-cleansing.
As long as you keep living below your means and investing the difference between income and expenses, you’re going to be successful.

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314 | Is My Company's Stock Overpriced? | P.E. Ratio Explained Apr 19, 2021

The Households of FI series continues! In this episode, we touch base with Kristi, the single mom from Minnesota who. New to FI, Kristi is working to get on the path but has questions about her company’s Price-to-Earnings (P/E) Ratio and the Employee Stock Purchase Plan (ESPP).
How to evaluate what a company’s stock is worth is not something many of us index fund investors know a lot about, but it’s good to be familiar with it. Individual stock selection is something that Brian Feroldi gets excited about, making him the perfect mentor for Kristi and her ESPP questions.
The only individual stock Kristi owns is her company’s stock. She is able to buy her company’s stock for a 15% discount with up to 10% of her income.
She has been buying this stock since beginning her career six years ago and has accumulated a lot of it. Because she didn’t know anything about investing prior to finding the FI community, she nows calls this her biggest financial mistake and has finally started selling a bit of it.
She originally thought that sell the stock with the lowest cost basis to realize the largest gain would be the best strategy, but now questions if that is the best move.
Brian says a lot of publicly-traded companies offer ESPP, like Kristi’s. Company plans vary somewhat, and it sounds like her company purchases lots of the stock on a monthly basis at the end of the month.
As long as Kristi holds the stock for two years, the 15% discount is taxed as ordinary income, and capital gains are taxed as long-term capital gains.
Discounted stock sounds like a great deal, but Kristi has a lot of risk tied to her company. Her salary, bonus, retirement plan, benefits, and career capital all rely on the company. Purchasing employee stock increases the risk even more.
When Brian started his career, his company offered an ESPP, and although he was bullish on the company, he chose not to participate as a risk management strategy. He already had too much riding on the companies success to risk adding to it.
Although the company did well and he would have increased his wealth, he is happy with the choices he made because he was maximizing his potential net worth, while assuming as little risk as possible.
Although her company is a blue-chip business and low-risk company. Kristi will need to ask herself how much risk she wants to be tied to it.
Brian says ESPPs are great, but you’ll want to make sure you are taking care of everything else first, such as an emergency fund, 401K, debt, and IRAs.
Although her company is the only individual stock she owns, she is somewhat interested in owning other individual stocks. She can add that in over the top of the bulk of investments in index funds, while remaining diversified, and still feel good about her long-term compounding chances.
Kristi would like to know how to evaluate an individual company’s stock for investing in the short-term and long-term. She knows the P/E ratio is something to look at and her company’s P/E ratio is 18.66.
Brian says a P/E ratio is a tool you can use to evaluate stocks, but it’s important to know when it is appropriate to use and when it is not.
First, Brian says he never invests in a company short-term, or less than three years because it’s impossible to know what a stock is going to do in the short-term. Long-term stock prices are driven by earnings power and earnings growth which is the company’s profitability.
In P/E ratio, the P stands for price or the price of one share. E stands for earnings, the net income or profits per share. The difference between those two numbers is the price investors are willing to pay for $1 profit in the company.
With Kristi’s company, for every $1 in earnings power generated, the market is willing to pay 18.66 times that number.
Brian says it’s helpful to flip that number around and think about it as an interest rate. Take 100 and divide it by 18.66, to get 5.35% on the company’s earnings power. But is that good or bad? Context is key.
When looking at over the last decade, Kristi’s very stable company’s P/E ratio varied from 30 to 12. Since the current P/E ratio of 18.66 is on the lower half of that range, Brian says the stock is more likely to be in bargain territory than it is to be overly expensive.
Next, Brian pulls up the company’s net income over the last decade, which has been mostly stable with a few spikes and other periods when it has fallen. This needs to be compared to the P/E ratio as the highs and lows may be artificial.
Another metric Brain says to look at is the price-to-sales ratio, which is the price of the business divided by the sales, or revenue per share. This ratio eliminates the one-time swings and tends to be much more stable. Over the last decade, her company’s ratio varied from 5 to 2 and is currently at 3, again leading Brian to believe the stock is in buy territory.
If you have an ESPP, you want to look at the minimum holding period, know when you are outside the short-term capital gains, and the other details of your company plans. Consider rolling it over to an investment outside your company once the plan requirements have been met and it meets long-term capital gains requirements.
Long-term capital gains have preferential tax rates. The line of delineation between short and long is one year.
Investment gains are not subject to tax until they are realized. If selling an investment held less than a year, the gain will be taxed as if it was ordinary income, or whatever your top marginal tax rate is, which for most is 20-24%.
Gains from investments held longer than one year are as taxed as long-term gains, which for most people is 15%.
For those who have access to an ESPP, it is part of your compensation but will require a bit of research because there is some risk in tying up so much of your wealth into one company.

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313 | Are You as Diversified as You Think You Are? Apr 16, 2021

The goal of diversification is to ensure access to a lot of upside without being exposed to an unacceptable downside. But are you as diversified as you think you are?
Long-time community member, Frank Vasquez says there are three roles bonds have in your portfolio, income, stability, and diversification.
The Holy Grail Principle focuses on what the concept of diversification really means. It doesn’t mean different, it means uncorrelated.
Investors can use online websites to calculate the correlation of two assets that results in a number ranging from 1 to -1.
The closer the number is to 1, the more highly correlated they are. A number close to 0 indicates the assets are uncorrelated and move randomly with respect to each other. A negative result means the assets are negatively correlated and typically go in opposite directions.
Why would an investor want assets that are negatively correlated if that means while one is doing well, the other is not? In the accumulation phase when an investor is trying to build wealth, they probably would want negatively correlated assets. Upon reaching FI, they may be helpful when attempting to ensure the highest safe withdrawal rate.
Safe withdrawal rates for each portfolio will vary slightly and range from 3-5.5%. There are websites online to help calculate the rate for different portfolios.
Frank has three adult children who he advises to max out their retirement accounts in basic index funds. The next bucket to fill is an emergency fund, followed by a taxable brokerage fund to used toward a down payment on a house.
His son’s brokerage account used a risk parity-style portfolio, which is good for intermediate-term savings.
When first starting out, money invested is a big pile of future cash. You invest a little each year and should get it into risky, growth-oriented, and reliable investments, which are stock index funds.
Until you have $100,000 in your account, being invested in one fund is perfectly fine. It’s about earning and saving at that point. After the first $100,000, earnings begin to mean a little more and you can embrace a little more complexity.
In the four phases of investing for retirement, the first two are earning and saving and are the most important to get automated saving going. Phase three is investing and the fourth is managing the investments to ensure they don’t blow up or go away.
Long-term accumulation comes first in a portfolio, and Frank’s son is extremely frugal, making the risk parity portfolio possible. But what considerations are there if you are looking to transition index funds into a risk parity portfolio?
The first step is to figure out where you are going and where the goal is. Next, look at what you have and what needs to be transitioned. Start the process when you hit your FI number or about five years out from when you think you are going to need it. You don’t want to be 100% equities and have the stock market crash two years before you retire.
A risk parity portfolio does not stop earning money. The return is approximately between 6-8% after inflation, but the tradeoff is you are also only getting half the volatility of the stock market.
You can’t optimize the performance of your portfolio in the future, but you can control your expenses, modify them, and take less in one year if you need to.
Treat all of your assets as one big portfolio. You don’t want to incur unnecessary capital gains in your taxable accounts, so moving funds in retirement accounts is appropriate. The least movement possible is best and anything taxed as ordinary income should be put into retirement accounts.
Risky parity is a style of investing that has become more accessible to everyone with no-fee trading. It is finding uncorrelated or negatively correlated assets and combining them to reduce the risk of the overall portfolio.
The main driver of the portfolio is going to be stocks at 4-60%. The most diverse thing from stocks are Treasury bonds, like long-term Treasury bonds, at 20%. Gold may be an alternative.
Bonds are not good income generators anymore. The go-to places for income sources are REITs and Preferred Shares.
If you want to invest in something like Bitcoin, make sure you have a volatility match to it.
Listener Andy asked about what percentage of a stock portfolio should be in international stocks. Frank says the issue with international funds is that they are highly correlated with US funds so they aren’t very useful.
When Frank is deciding on investing in something, he looks at how useful it will be in his portfolio. He looks at its correlation with the rest of his portfolio and its volatility. You don’t want to put very much of something with high volatility in your portfolio.
Listener Luke asked about Frank’s views on factor investing and if has or plans to have small-cap value funds in his portfolio. Franks says he does have small-cap value in his portfolio because they are less correlated with the overall stock market than an international fund.
Franks says you want a basic and diversified two-fund portfolio that covers the whole market would consist of large-cap growth and small-cap value funds.
The correlation between a total stock market fund and an S&P 500 fund is extremely high and a kind of false diversification.
Although index funds are cap-weighted and gaining more and more of the larger companies over time, they are also self-cleansing in that companies doing worse fall down or fall off. Small-cap value funds do the reverse. When a company gets too big, it gets kicked out. Holding both types captures each end of the spectrum.
According to the Macro Allocation Principle, what matters most in investing are the macro allocations between stocks and bonds. According to Jack Bogle, any 60-40 stocks to bonds portfolio is going to perform 94% the same way as any other 60-40 portfolio.
Listener Claudia asks what a bond tent would do to her sequence of return risk. Franks says a bond tent is an old-fashioned way of dealing with sequence of return risk, but he says it’s not functionally different than buying a short-term or intermediate bond fund.
Bonds should move opposite of the market, but lately, they have moved with the market. Franks says different bonds behave differently. Some do not provide much diversification. Focus on Treasury bonds for diversification.
The hallmark of a very diversified portfolio is when you see different things moving in different directions at different times.
Rental real estate and stocks have a low correlation, so it can be a good way to diversify, although sometimes they can move together as in 2008.
In Frank’s mind, diversification should mean uncorrelated, it doesn’t mean having lots of stuff.
Frank’s podcast is focused on risk parity and he has created six sample portfolios at Fidelity that he discusses each week. While Frank likes to nerd out on this stuff, you don’t need to to become a successful investor.

Frank Vasquez

Website: Risk Parity Radio
Podcast: Risk Parity Radio Podcast

Resources Mentioned In Today’s Conversation

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312 | First-Time Home Buyer | Bigger Pockets Apr 12, 2021

In 2008-2009, the American dream of a home with a white picket fence turned into a financial nightmare, sending many families underwater for a decade. After looking at the numbers, there’s an ongoing debate over homeownership. Owning may not be the right decision for everyone.
Scott Trench and Mindy Jensen from BiggerPockets join the show to discuss home buying and their new book, First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes.
Even if you’ve already purchased a home, Scott and Mindy’s book is a masterclass to help you rework the process during your next home buy.
According to their book, “…a smart home purchase will not only give you a place to live, but also offer flexibility, financial stability, and the chance to recognize and increase in that home’s value over time”.
Is purchasing a home a good investment? Mindy says, “Maybe”. Housing is an expense whether buying or renting. The more you buy, the more you are spending, and the less wealth you will have.
Don’t ask how much can you afford. How little can you spend to meet your lifestyle needs and what’s the best financial decision to meet those needs? There’s a lot of math behind a buying vs. renting decision.
As a real estate agent, Mindy tries to stop herself from asking clients how much they can afford. Instead, she asks about the price range, what kind of home they are looking for, and what condition it should be in.
Mindy’s home is an investment, but that’s because she buys dumpy homes, fixes them up, and forces the appreciation. However, she says the average person shouldn’t consider their home an investment.
For the average buyer, appreciation will generally occur over the course of the ownership time period, but it is the product of the housing market around you. It tends to appreciate 3-8% year over year. Selling after just a few years of ownership won’t make much when you sell, in fact, you may lose money to closing costs.
For regular buyers, a home is a place to live, not an investment. Roughly 10% of a property’s purchase price is out the door in closing costs the moment you buy it. If you don’t improve the property and force the appreciation, you have to allow appreciation to carry you back over time.
Over a long period of time, the returns on your home are low compared to investment alternatives like the stock market.
When deciding to buy or rent, what’s the breakeven point? Scott and Mindy assume a 3.5% appreciation rate, which comes from the Case-Shiller Home Price Index. At that rate, the breakeven point comes in 5-7 years. The higher the appreciation rate, the faster you reach the breakeven point.
You don’t need to live in the property for the 5 to 7 years to reach the breakeven point, you only need to own it for that time to make it work. You could rent it after you move out as an exit strategy and increase the desirability of buying.
If you rely on a lending calculator to answer the question, “How much house can I afford?”, you’ll end up being house-poor.
Median incomes and home prices around the country differ more than other categories, such as food. All the disposable income over what is needed for day-to-day life can go to your scarcest asset, which is housing in many high-cost-of-living areas.
There is no rule of thumb for what percentage of income you can spend. It’s about how little house you can buy and eliminate all of the waste.
When making the rent vs buy decision, Scott says the biggest variable to consider should be time, then what your appreciation is going to be, what you can do to force the appreciation, and then exit strategies.
There can be a dramatic difference between a home you would want to live in and one you could potentially rent. First-time home buyers tend to live in the property, but it’s likely they won’t live there forever and should make the smartest choice by thinking outside their own needs.
Mindy suggests using the internet to research what you need versus how can you rent it out.
It’s not a smart financial maneuver to decide you want to buy a house today and put an offer in tomorrow. Do some research and figure out what exactly you want.
Most people go in with the framework of buying the house they like and pray that it goes up in value so they can sell at a profit. But when you buy a home, there are three eventual outcomes. You live in it, rent it, or sell it for a profit. Keep all three of those in mind when buying.
If the chances of you moving are almost zero, it’s a great idea for a first-time homebuyer to begin looking for their forever home, but Mindy thinks the whole idea of a forever home is garbage.
It’s not realistic for a 20-year-old to be able to afford the 3000 square foot home and stay there for 30 years.
Lenders, real estate agents, and contractors are all incentivized to have you buy the biggest home you can afford because they make the most money that way.
If you don’t focus on the first home being your forever home, you can have more assets available for when you are in a place to get what you want.
The first step is to be clear where you fall on the “live in it forever, rent it out, or sell for profit” spectrum. Next, figure out the price range for what you want. Don’t look at the active listings, look at what has sold in the last 180 days. Finally, narrow that search down to the 10 properties you would have purchased yourself. That gives you a realistic idea of your market.
Mindy says the exercise can be a great way to screen agents as well. If they are unwilling to do this for you, cross them off the list. You should interview the agent before deciding to work with them, keeping in mind that their incentives are not necessarily aligned with yours. Find someone considerate of what you want.
The home seller is usually paying the commissions of both agents involved in the sale of a home, though for it’s usually very practical for a first-time homebuyer to have an agent represent them.
The next step in getting a good deal is waiting for the home you want to come on the market. Be pre-approved or pre-qualified for a loan and be ready to view the property as soon as it comes available and make an offer that night or the next day. It’s not a rush decision because you already pre-determined what you wanted to buy.
If you think through the exit strategies before buying your first home, you won’t feel trapped by your decision if something like a job opportunity in another city comes up.
In a hot real estate market, the fear of mission out can be real for first-time homebuyers. It’s a hot market right now, but it’s not going to continue forever. Make offers based on the numbers, not out of emotion.
Scott is currently renting because it’s a cheaper way to fund his lifestyle right now and there’s too much risk for him to assume with buying.
Other than student loan debt, a first home purchase may be the biggest financial decision you make. It’s worth spending a little time thinking about it.

Scott and Mindy from BiggerPockets

Website: BiggerPockets
Podcast: BiggerPockets Podcast

Resources Mentioned In Today’s Conversation

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311 | How to Travel for Free | Stereo Live Q&A Apr 09, 2021

310 | Get Good with Money | Tiffany Aliche, The Budgetnista Apr 05, 2021

“When you are financially whole in the way I’ll teach you to be, you won’t have to live in fear. You’ll have a plan for each area of your finances so that they are constantly working on your behalf“. — Tiffany Aliche
America’s favorite budget expert, Tiffany Aliche joins us to discuss her new book, Get Good With Money.
Financial fear can come from financial trauma and drama. When you know that the money you are making isn’t quite enough for the things that you absolutely need, or you can foresee a future when your finances will not be okay, most of us carry that fear secretly and with a sense of shame.
Tiffany wants her community of more than 500,000 Dreamcatchers to release that shame, focus on solutions, and create plans that actually work.
According to Tiffany, wealth is more than just money in the bank. It’s really a mindset, which is the building block of personal finance.
People often chase an end goal without a foundation to ensure they will still be okay if something were to happen.
Tiffany’s teachings are foundational. The goal is to give you the foundation that you need to go on greatness, such as investing at a high level, buying the home you want, or starting a business.
For many of us, fear comes from a lack of knowledge and it takes an external, traumatizing incident to awaken us. Tiffany wants to reach people before they get to that point by normalizing financial education early on.
Tiffany’s approach is three-pronged: knowledge, access, and community. She delivers knowledge through her blog, The Budgetnista, and podcast, Brown Ambition. For access, she showcases other financial educators, like the ChooseFI Foundation, to those who want a financial education for the children and community. And finally, she built Dreamcatchers for the third prong, community, so that people know they are not alone.
The 10 components that constitute financial wholeness are budgeting, savings, debt, credit, and learning how to earn for the first tier. In the second tier, she includes investing for retirement and wealth, insurance, net worth, your professional money team, and estate planning.
This foundation of financial wholeness is what you build the rest of your goals, hopes, and dreams on.
While writing her book, Tiffany decided to Google, Jake the Thief, a man from her past who had caused her financial trauma. She discovered that he had escalated his thieving behavior from poor 20-something-year-old women to defrauding the United States Government and he is currently sitting in federal prison.
Jake’s story is a cautionary tale. Sometimes the wrong thing or risky behavior works for a short period of time. But it’s important to learn how to manage your money from the ground up versus from the top down because you can lose it all if you don’t know how you really built what you built.
Tiffany ended up with credit card and student loan debt and a mortgage she could no longer pay for, In total, it was around $300,000 in debt.
That experience taught her that her father was right, slow and steady wins the race. She now takes her time and is very methodical with her decisions. Even it means taking a loss, she’ll take a short-term loss if it means a long-term win.
Once she built her foundation, she was able to build wealth much more quickly. She wants others to have the opportunity to build the life that they want.
After reading her book and matching one of her workshops, Jonathan says he likes how good Tiffany is at organizational structure and categorizing things.
With budgeting, Tiffany assigns control categories to expenses. First, she lists all of the expenses and then assigns them to categories.
The first category is B, or bills, like a mortage. Some of those bills are usage bills that fluctuate depending on usage, such as water or electricity. She puts a U in front of those Bs.
Everything else is a C, meaning cash or choice expenses, because these are expenses you have choices over, like haircuts or gas for the car.
Categorizing in this way can help determine if you have a spending-too-much issue, or a not-earning-enough issue, when there isn’t enough at the end of the month. If most of your money is going to Cs, you are spending too much because of your choices. If most is going to Bs and UBs, you aren’t making enough to take care of your financial responsibilities.
When things are temporarily tight, you know you can look at your Cs and make some cuts there first. If it’s not enough, move to the second level, UBs. If that’s still not enough, move up to the Bs.
Tiffany’s father taught her in an age-appropriate way about the financial consequences of her actions and says it’s a lesson we could learn as adults.
A budget isn’t deprivation, Tiffany says it’s your “say yes plan”. Budgets are like your mom. She wants to say yes, but there is an “if” button. You can do the things you want, but only if you’ve lined yourself up in a way that makes it sustainable and safe.
If you can master your budget and look at it differently, it is there to accommodate your goals, hopes, and dreams. But it might require you to give something up.
Jonathan thinks Tiffany’s book speaks well to those who are broke. When writing it at the height of the pandemic when people were losing jobs and scared, she didn’t want to leave behind those starting in negative territory.
She wanted to give them permission to focus just on their sleep, health, and safety. It’s okay to focus on expenses related to health and safety and tell everyone else that you don’t have it right now. You will get to them when you get to a safer place financially.
30% Whole is the chapter Jonathan thinks is worth the book’s price all on its own and you really need to know these tips if you are in debt, such as dealing with debt collectors or mortgage lenders during foreclosure. You can insist on a debt verification letter to verify that they have the right to inquire about it.
Debt freedom is a goal, but it’s not the goal. You can be debt-free and still broke. Financial freedom is an incomplete picture. There may still be holes in areas like insurance and estate planning.
The FIRE movement is great, but Tiffany believes there is a holistic view that is missing. Not matter how high or low your income, financial wholeness is available and accessible to everyone.

Tiffany Aliche

Website: The Budgetnista
Podcast: Brown Ambition

Resources Mentioned In Today’s Conversation

ChooseFI Episode 240 From Financial Imperfection to America’s Favorite Budget Expert | Tiffany Aliche
Get a copy of Tiffany Aliche’s book at getgoodwithmoney.com.

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309 | College Hacking : The Comprehensive Guide | Stereo Live Q&A Apr 02, 2021

Winter is over, spring is here, and Brad and Jonathan have hosted their fifth live event on Stereo!
With the new season and sense of hope, people are beginning to think more about traveling and travel rewards points. Start thinking about a trip you want to take and join us on Stereo next week for a live group travel rewards coaching call with Brad.
The focus of this episode is college. How can you do college for less or do you even need to go to college at all? After more than 400 episodes, optimization tactics related to college have popped up frequently. What has changed for 2021, what are the best practices, and what should you be thinking about?
In the FI community, we take a step back, see the world for what it truly is, and look at a problem a little bit differently. Society tells us that college is on the path to success, but knowing what we know now, there may be another way or a way to improve the ROI of going to college.
Back a generation or so ago, it wasn’t uncommon for a college student to be the first in their family to attend college. College was seen as a way to make it into the middle class. It may have been true then, can still be true in some ways today, but the difference is the cost of college has risen dramatically while the earning potential did not rise at the same rate.
We have to be looking at college through the lens of ROI and understand what we are trying to get out of it. College signals that you can follow the rules, but an undergraduate degree doesn’t necessarily mean you have skills or mastery over something and it’s skills that matter today.
No one can afford to go to college for one hundred thousand dollars and come out earning $50,000. It will create financial chaos for a decade or more of your life.
Most people’s incentives to go to college fall into one or more of these three areas: wanting to have the college experience, access to higher-income jobs, or a love of learning.
The college experience was not high on Jonathan’s list of priorities, nor was attending a prestigious university, so he did two years of community college before transferring to Virginia Tech.
Brad’s goal for college was to get a job upon graduation. Though he was accepted to Ivy League schools, he chose not to go to them as they were too expensive and opted for the University of Richmond instead.
If having the college experience or getting into the right school are top priorities for you, listen to ChooseFI episodes 114 and 154 to learn more about how to discount the cost of college using test scores and the FAFSA.
In episode 083, Cody Berman talked about how he approached applying for scholarships as if it was a part-time job and thought about it systematically.
Rob, from The Simple StartUp, called in to say that his parents used geo-arbitrage and moved back to Ireland so that Rob and his siblings could go to college for much less. For graduate school, Rob coached women’s soccer in a graduate assistantship so that he was able to get his Master’s for free and earn a stipend.
In episode 138, Anthony Gary discussed how he hacking his college room and board costs by becoming a Resident Assistant. Other past guests have talked about utilizing niche scholarships, like ones for golf caddies.
One listener left a voicemail asking how to incentivized kids to apply for scholarships. Jonathan would like to try and gamify it for the kids and Brad believes that there are a lot of merit scholarships available if which college your child attends isn’t concerned with attending the most prestigious schools. He and Laura have made it clear with their daughters that they don’t care about prestige when it comes to college.
Choosing where to go to college may mean saddling yourself with student loan debt for decades. We are having 17-year-olds make these decisions that can negatively affect their lives for decades without thought or counsel.
Jonathan suggests slowing down and providing kids with a better option.
In 202, the average cost of college was $110-120,000 and the average annual income for a graduate was $50,000. It’s a lot of debt for a young adult to get out from under. A little bit of optimization can make it so much easier.
If looking to improve test scores, considering investing and paying the fee for test preparation services from companies like Edison Prep.
Chase called in to talk about the ROI of college in the military. He is in the National guard and gets reimbursed from both the military and his employer for going to school.
When you chose to put the time in to serve our country, it’s possible to optimize the compensation package and never have to work again. Options to pay for college and serve include ROTC and the US military service academies.
Marjorie called in about geo-arbitraging college. She attended college in Puerto Rico for a fraction of the cost in the US mainland.
Many states have a guaranteed admissions program where you can attend community college for two years and then are guaranteed acceptance to a four-year-school, saving two years of higher-priced tuition, but make sure you know what credits will transfer over to the university.
How can you test out a college? In addition to getting college credit for AP courses, dual enrollment while in high school can be an option.
CLEP testing is a little-known secret as discussed in episode 238 with Millionaire Educator.
Another listener called in to mention Scholarship For Service, where you can get tuition and fees paid along with a $25,000 academic stipend with a requirement to later work for a federal agency. This program is similar to the Department of Defense Smart scholarship mentioned by Sunny Burns in episode 139.
If your desire to go to college is for the love of learning, do you really need to go to college? Jonathan says that they have proven there is a replicable path to earning six figures a year without going to college.
The son of ChooseFI’s CEO, Edmund Tee, is earning his associate’s degree while in high school thanks to dual enrollment then plans on taking a gap year to pursue Salesforce through Talent Stacker.

Resources Mentioned In Today’s Conversation

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308 | 102 Business Ideas for Kids |Simple Startup with Arianna and Sheila Mar 29, 2021

Do you have a budding entrepreneur at home? Help them bring their business ideas to life, learn the value of money, and gain future-proof skills.
About a year ago, Rob Phelan, launched The Simple StartUp workbook and live coaching series aimed at helping kids aged 10-18 develop their first business idea. This episode will highlight lessons learned from his program.
The Simple StartUp has given Brad a language to talk with his own girls about business and entrepreneurship. His daughter, Molly, has grasped the concept of affiliate marketing and how it might help her Gardening Gals business.
Molly and her friend are now making slime and thinking about the costs of each component in the slime like little businesswomen. Rob says even if she doesn’t become an entrepreneur, she is learning personal finance skills, problem-solving, how to break down costs, and return on investment.
These are conversations every parent can be having with their child as we are all customers of different businesses.
Rob has put together a document that parents and kids can use as a launch board. Access it for free at ChooseFI.com/idea.
At the core of any business idea is something that will solve a problem for someone else. The Simple StartUp tries to help kids get past the idea that they need to come up with the perfect idea before they can start a business. In reality, you’re going to go through multiple businesses or many iterations with your business. It does not need to be super creative or innovative to get started and learn about the process.
In his document, Rob came up with 102 ideas that kids ages 10-18 can start at home right now if they have some skills and equipment available.
The kids taking Rob’s course usually start with assets they already have by thinking about their skills, hobbies, and interests. They go through a thought exercise of thinking about complaints people have and what solutions they propose for solving them. Can they solve it in such a way that people are willing to pay for it?
Parents can prompt their children to go through the thought exercise themselves when they have a complaint about something.
Everyone has something that they are marginally better at than the people around them.
Annalise messaged Jonathan to let him know that her Easter cards have been released. In The Simple StartUp, she has learned what a powerful selling tool word-of-mouth marketing can be and is working to create super fans by reaching back out to previous customers like Jonathan.
What Analiese is doing is core to business development. Like Kevin Kelly states, you can make a living forever if you have 1000 true fans. Recommendations from someone people trust are better than any PR you can pay for.
Rob has made some changes to the course since last Summer and Fall. Parents have been requesting to have immediate access to the course to feed existing passion and excitement rather than wait for the next cohort to begin.
Not every kid needs the structure of a group course. As an alternative, Rob has created a self-paced, on-demand course that any entrepreneur can start right now. It includes video lessons and an online community of course alumni.
The next cohort course will be The Simple StartUp Summer Challenge, beginning at the end of June and running for six weeks.
How can parents foster these conversations with their children and help them start? Use the 102 Business Ideas document as a starting point and ask them to come up with other ideas for solving the problem and then how it could make money.
The Simple StartUp student, Arianna, started a finger puppet business after talking through the business idea with Rob. She began using free tools create awareness for her product and after receiving positive feedback, switched to Etsy which would direct customers to her. She has learned a ton in the process and had fun doing it.
Arianna’s mother, Shelia, began listing to ChooseFI to learn how to take care of her debt but when she heard about The Simple StartUp, she thought it would be perfect for her teen.
Initially, Arianna wasn’t thrilled about doing a program over the summer, but she reluctantly agreed. Nervous at first, she liked the videos and found everyone in the chat to be friendly.
When coming up with her idea, Arianna knew she liked crafting, plus her grandmother had taught her how to sew.
Outside of class, Sheila helped Arianna understand terms like profit and to use coupons when purchasing supplies.
Arianna’s lightbulb moment came from selling items in the video game Animal Crossing. She realized she could incentivize people to buy more with quantity discounts.
Her business name is Plushet, a mash-up of plushie and puppet, and its mission is to bring the family together through imagination and puppets.
Arianna discovered that she’s pretty good at making logos after making one for a fellow classmate.
Not only does Arianna encourage other kids to take the course, but says it’s better than video games and she would also even like to do it again. Sheila believes the course opens the door to learning new skillsets.

Resources Mentioned In Today’s Conversation

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307 | How to Factor My Mortgage Into My FI Number| Live Stereo Q&A Mar 26, 2021

After four weeks of hosting the live weekly show via Stereo, Brad and Jonathan continue to refine the format and come up with ideas for improving the experience.
Jonathan needs some specialized dental work performed and the dentist he found is out-of-network. Insurance isn’t going to cover much in this situation, but thankfully, it doesn’t put him in financial straits.
As they reminisce about being children of the 80s, Brad and Jonathan come to the conclusion that time moves on and the rulebook changes. If you are stuck in a world that doesn’t exist, you aren’t going to be successful. Be aware that things change and be open-minded.
Google is coming out with its own certificate programs in project management, data analytics, and user experience design through Coursera what will cost most around $250. Google is partnering with 130 other companies to partner with them to hire the graduates of these programs.
In past decades, a college degree may have mattered, but in 2020, employers are looking for what can you do or what have you done, not necessarily the degree.
Listener Colin called in to say that he started a side hustle last year teaching people computer programming and asked about how to go about finding new clients. Jonathan says that as a business owner, Colin has a product he has created and needs to figure out how to deliver that product, ensure a great experience, find new customers, and finally scale and grow the business.
For Colin’s business, is there an awareness problem or is there a problem converting awareness into sales? Brad says something that has worked for him is making connections within his niche and be authentic. Jonathan suggests establishing yourself as a subject matter expert using LinkedIn and Quora and a blog or podcast to begin attracting people interested in the subject.
Another thing Colin should do is demonstrate his course has value, get testimonials, and constantly test and iterate.
Marjorie called in because she knows how much Jonathan loves the Paprika app, but recommends a similar app called Whisk. It can download recipes from the internet, but you can also take pictures of recipes to upload to the app. Plus, it organizes recipes really well, has a weekly meal planner, and can create a shopping list.
The next caller said she loved the coaching call that Jonathan did with Corrine and would love to hear more of those kinds of episodes. Jonathan worked with Households of FI member, Corrine to map out her FI number. Jonathan recommends watching the video for that episode because he shared a lot of screenshots while working with Corrine.
Similar to the recipe app Whisk, Brad said that he could have saved money on his recent CT scan using MDSave. Instead of being charged $2,093 for his scan, a provider found through MDSave would have cost him just $289. He was eventually able to negotiate the bill down to around $1,300, but that is still much higher than he needed to pay.
The next caller from LA is a side hustle addict. He has been self-employed his whole life and realizes that his nest egg is very small. He wants to know where he should focus his investments for retirement.
The caller has a choice between a SEP IRA, a Simple IRA, and a solo 401K. There may be some advantages to using one over the other depending on the size of the business. Brad has set up a SEP IRA and thinks that a solo 401K would have allowed him to defer more money by contributing as the employee and employer. A SEP IRA only allows for employer contributions.
If he still meets the income thresholds, the option for a Roth IRA may also be available. There is little downside to contributing to a Roth IRS since contributions can be withdrawn tax and penalty-free.
The next caller shared what they would do if looking for a career move. For their technology and financial services company, they would focus on people and find out everything they could about them so that they could engage in relevant small talk. This advice follows nicely with the points Chris Hutchins made in episode 121R.
A weak point for a lot of is how can you build a system around building authentic relationships over time? This was something discussed with Jordan Harbinger in episode 233.
The next caller wants to know how to account for a mortgage that you expect to pay off during retirement when calculating your FI number. Jonathan plans to pay his mortgage off before beginning to drawdown his investments, however, he calculates his FI number based on what his life costs with a mortgage. It gives him a bit of a fudge factor.
Your FI number is calculated by taking your annual expenses and multiplying it by 25. If you plan on paying your mortgage off before retiring, remove the payment from your annual expenses. While principal and interest can be eliminated, taxes and insurance will not be and should be included in your annual expenses. A multi-phased approach will need to be employed to calculate your FI number if planning on paying off the mortgage during retirement.
Listener Phil called and left a voicemail asking about tax tips for those with side hustle income and how to balance work-life, side work, and life in general.
Jonathan thinks turning a hobby into a business is a great way to explore something within the confines of a business entity. Brad’s tax tip is good record keeping and keeping things separate from your personal accounts.
Jonathan also likes the thought of putting advertising expenses on a business card that earns travel rewards, like the Chase Ink Business Preferred, since advertising is a legitimate deductible business expense.
A work-life balance can be tough. Jonathan says the biggest misconception is that you’re always going to be balanced all of the time but there will be sprints and tilts. It’s how it averages out over time.
Experiment and test a bunch of different things, but don’t put a massive amount of time into something with no ROI or thought to the balance and other areas of our life.
If you aren’t going to be in balance and there are other people relying on you, have a conversation about it. Communication will always buy you more room.
Map out the cadence to your life and realize where you have control of your time. You might have a boss that needs to sign off on it, but if you work for yourself, you don’t need to ask for permission to make time.

Resources Mentioned In Today’s Conversation

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306 | Myths and Misconceptions |Diania Merriam Mar 22, 2021

Diania Merriam is the Chief Economeist behind the EconoMe conference, a two-day event at the University of Cincinnati whose roots are in the FIRE movement.
In 2019, Diania was preparing for the launch of EconoMe in the spring of 2020. She could not have anticipated the risk of a global pandemic impacting her conference, but it was successfully held on March 7, 2020, just before the event location’s shut down. The 2020 event hosted 250 attendees and nine expert speakers.
After putting 20 months of work into the conference, Diania was gratified to hear that 90% of participants loved the event and would recommend it to a friend.
Getting together as a community is something that has been missed in the financial independence community over the last year. While some may label the movement as a cult, that is s misconception.
Like many others in the financial independence community, Diania felt the need to share content to make it accessible and help those receptive to the message get their financial houses in order, much like Mr. Money Mustache did for her.
She finds that many people have preconceived notions and assumptions, thinking that it won’t work for their personal situations, but Diania believes putting more content out there will help others it’s a mindset and there are no hard and fast rules.
Although some may believe you have to be a white 3o-something male with a tech career to be in the FIRE movement, Brad points out that is far from the reality ChooseFI sees in its Facebook and local groups. Brad says that 90% of the responses to his weekly email are from women.
Financial literacy is for everyone and FIRE is merely an aggressive and enthusiastic brand of it.
Though there seems to be an assumption that those in the FIRE movement earn high incomes while eating rice and beans, Diania says in truth, it is rather agnostic when it comes to income. It might be easier for those with high incomes, but those with lower incomes can also improve their finances.
The way to improve your finances is to increase income, decrease spending, and invest the gap. What is most important is the gap.
The loudest voices in the space tend to talk about frugality because it’s the easiest thing you can do when first starting out, however, ideally, you should be doing both.
Jonathan gets angry at the assumption that there’s little to nothing you can do to increase your income. You aren’t stuck at your current salary level.
A lot of personal finance content revolves around sacrifice and struggle, but there is a sense of optimism in the FIRE community. You have control over reducing your expenses and increasing your income.
Coming across FIRE content helped Diania realize how much privilege she had and enabled her to be honest about how wasteful her spending really was.
For Brad, the heart of financial independence is optimism and an internal locus of control. You can affect change on your life with tiny actions that compound, resulting in success.
For awhile, Diania wanted to be the female Mr. Money Mustache. It took her a while to realize she needed to be herself and figure out her own flavor of FI that was based on her own goals.
Diania’s original plan looked a lot like other bloggers, where she would reach a net worth of 25 times her annual expenses and then retire at 40-years-old. However, life presented other options and she began to ask what she wanted out of life and what she wanted to create. Now she feels like slowing down instead of just racing to meet her FI number.
Jonathan likes to think about life in terms of five and ten-year timelines. Ten years ago, did you have any idea you’d be where you are today?
Brad notes that just being on the path to FI gives you the space to explore what you want your life to look like and what you want to focus on. The nuts and bolts of money is pretty easy to figure out. Figuring out how you want to spend the next 60 years of life is harder.
Like Diania, because Jonathan was on the path to FI, he was to explore interest-led learning, turn it into an income stream, and eventually leave his career as a pharmacist.
One of the lessons Diania has learned is that your money is only as valuable as your clarity on how you are going to use it. When her work situation started to degrade and become toxic, she realized she was already at Coast FI and had enough FU money where she could take some educated risks and look at self-employment.
Being at Cost FI meant that Diania had already saved up enough money that would grow enough to support her in retirement. In the meantime, she only needed to cover her annual expenses without adding to retirement. Her life right now looks a lot like how she would want it to look if she was at FI and retired.
Retirement has a branding problem. Another misconception about FI is that if you are retired, you aren’t working. Regardless of your age, if you are retired, you shouldn’t be sitting around doing nothing.
EconoMe was born out of Diania asking herself what she would do if she no longer had to work for money. She wanted to create a party about money.
Why wait for retirement? Is there a way to change your life around and do it now?
Greed is another misconception associated with the FI community, but Diania believes FI puts you in a position to be really generous. She has experienced the generosity of those in the community who have been generous with their time to help her with her conference dream.
When you have figured out money for yourself, there’s nothing left to do but help other people. For example, 20% of the EconoMe conference attendees were over 50 or had already achieved FI, but there were there to share knowledge and cheer others on.
Diania thinks the benefit of having money is to be able to share it in some capacity through what you create and the gifts that you give.
Brad agrees with the generosity of the community. FI allows you to rethink how you relate to people and gives you an abundance mindset.
A quote Dinia loves is, “If you look at your inner circle and you aren’t inspired, you don’t have an inner circle. You have a cage“. She is incredibly inspired by all the people she has met in the community.
The three most important resources that have a huge effect on your life are time, money, and energy. The people you surround yourself with have a huge effect on your energy.
Is FI a fad that everyone will move on from in exchange for the next big thing? Diania doesn’t think so. Like time and energy, money is a resource and we’ll always be fascinated in optimizing our resources.
FIRE is an identification with something to build habits and meet goals. There has been an identity and support system created around it.
Rather than thinking of FI as a fad, Brad thinks we are normalizing the conversation and there are more and more people to talk to about it without feeling like a weirdo.
The EconoMe conference will be held this year on November 13-14 at the University of Cincinnati. Some of the speakers and activities have already been announced and can be found on the website. There will also be more breakout sessions to facilitate learning from each other.
Tickets are on sale now. However, if large groups are not allowed to gather by November, EconoMe will not pivot to virtual. Instead, they have backup dates of March 19-20, 2022. The decision and notification will be made by September 1, 2021.
Earlybird tickets are available until April 10th. 200 tickets are available at $149, and then the price jumps to $199.

Diania Merriam

Website: EconoMe Conference
Podcast: Optimal Finance Daily

Resources Mentioned In Today’s Conversation

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305 | Finding Your Locus of Control | Stereo Live Q&A Mar 19, 2021

It’s the third edition of ChooseFI’s live and interactive show via Stereo. You can submit a question, feedback, or comment, and find out how to join us for the live event by visiting ChooseFI.com/live.
Brad and Jonathan are getting high on life. Not only have Brad’s daughters started back at in-person school, but he and Laura were also able to attend a Crossfit class together. Meanwhile, Jonathan is successfully combating fatigue by getting the right amount of sleep, cutting out caffeine, and maintaining high hydration levels with juices.
In an ongoing effort to get 1% better, Brad recently reviewed his credit card bills. He found a $50 recurring charge for his daughter’s saxophone rental and decided to buy it for $500 rather than continue incurring the rental fee. He suggests doing this twice a year and asking if those recurring charges are continuing to serve you.
Jonathan recently canceled his Netflix subscription and wonders if there is a way to the effort of it and streamline our finances.
In a hypothetical example of a $2,000 car loan with a 2-3% interest rate, Jonathan asks if Brad would just pay the balance off versus keeping a monthly payment. At that low of an interest rate, Brad would not, but because of the intersection between math and psychology, there are others so debt adverse that they would pay it off.
For higher interest debt or 8-12% or more, Brad believes that is more of a hair-on-fire scenario in which paying the debt off as quickly as possible would be best.
Regardless of which side of the scenario you fall on, there is nuance and stigma. Rather than allow others to tell you what you can and can’t do, it’s important to know yourself and why you make the choice you do.
Understanding the why behind the car payment is a better thought exercise. If it’s because it gives you the cash flow to finance even more stuff, it can grow to become a difficult position is dig yourself out of. Financing allows you to trade your most precious non-renewable resource, time, for more stuff.
With every dollar you are saving, are you using it to invest, or are you buying more stuff? If you are continuing to buy more stuff, then you are still in the trap and aren’t looking at money as a tool.
Because Jonathan is a spender, he wants to keep things simple and doesn’t like having structural payments. In the hypothetical scenario, he would feel the need to pay off even a low-interest rate car loan.
The first listener voicemail wants to know how much in retirement is enough to adequately cover long-term care. His original goal was $10 million at age 65. According to the 4% rule, that would give the listener $400,000 a year to live off of, which is a big number.
It comes down to what does your life cost? Traditional retirement calculators all start from the point of “what do you earn today”, rather than “what does your life cost”. Your income is irrelevant. In retirement, you need to cover what your life will cost.
Health care insurance is based on actuarial tables put into place to ensure the provider doesn’t, in aggregate, lose money on you. The same is true for long-term care insurance. It’s priced so that providers don’t lose money on you. What is the effort to reach a $10 million balance to cover the cost of long-term care costing you in terms of time and health now? You can focus on putting systems into place now that give you the best chance to reclaim decades of quality life.
Rob Phelan, fromThe Simple StartUp, called in with a question about being open to new technologies and investments.
Brad isn’t a first-mover on anything. However, he has a diverse set of interests and prides himself on knowing when the tipping point is to jump in earlier than the average person. He’s done some reading on non-fungible tokens (NFTs) and believes they could be transformative 10-20 years from now.
Jonathan’s process is curation and synthesis. When he reads, he skims everything and sees the point when something new becomes real. He’ll do a deep five if it fits into one of the buckets he’s interested in. He’s been doing that deep dive into crypto and blockchain, but not NFTs.
While neither Brad nor Jonathan can get behind spending $2.5 million for Jack Dorsey’s first Tweet, they do agree digital ownership is interesting because of all the unique ways the concept could be implemented.
Next up is a seven-year-old who says they want to learn about investing. It starts with saving. What Brad tells his own kids is that life gets so much easier if you can save money. If you spend every cent you earn, it takes away a lot of choices in life and gives them fewer options. The higher you can make your savings rate, the more freedom you’ll have.
As for investing, think long-term, like many decades of investing. With a long investing horizon, the best chance at being really wealthy is with low-cost broad-based index funds or ETFs.
When Jonathan’s kids are older, he thinks he will try and attach a real company to the discussion and carve out a portion to invest in it. It would be one they know and has products they get excited about to help make the feeling of ownership real.
Natalie called in to say that she just opened an M1 Finance account for her traditional IRA contributions as well as a savings account so she can earn 1% on it. However, she’s never done a portfolio rebalance.
Rebalancing can be scary and easy to avoid. It comes back to having a plan and an investor policy statement and not letting your brain get in the way. M1 can do this automatically and there may be some tax consequences if it is done in a taxable account.
Rebalance in your portfolio totality, not within individual accounts. If you don’t have a plan, go and figure out what your goals are and have the plan match them. Rebalancing can also be done by making weighted contributions.
James, who is in Jonathan’s podcasting course, asks about speeding up his path to FI by purchasing multi-family real estate by withdrawing from a 401K and obtaining a HELOC.
While there are likely both success and horror stories of others who have gone that route, Jonathan would look for ways to avoid 401K withdrawals or taking a line of credit against your home.
Brad would only go into his 401K as a last resort. 401K withdrawals are subject to a 10% penalty and would be taxed as ordinary income.
Rather than a 401K withdrawal, Jonathan says that if the deal is good enough, the money will come. Bringing on additional investors may be an alternative. Network, be creative, and try to cap the downside.

Resources Mentioned In Today’s Conversation

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304 | Mapping Out Your FI Number Mar 15, 2021

Jonathan checks back in with Corinne from the Households of FI series to look at her numbers, goals, and map out a FI plan.
Financial independence is not about having the most money. In the pursuit of FI, the math is simple, but the math will change depending on your goals. It’s important to start with understanding what you want your ideal day to look like.
Following Corinne’s last coaching session with Jillian, she learned how to build good habits and strategies to get closer to the goals she wants.
One of the strategies she’s using is her phone to set reminders for the goals she wants to achieve. The reminders hold her accountable without her having to remember everything.
Jonathan pointed out one of the great pieces of advice from the episode with Jillian was her advice to explore the goals you find yourself resisting giving even two minutes to. What is it in your subconscious that is sabotaging your goals?
Corinne is on track to become a partner at her firm but that comes with a lot of expectations. In an exercise with Jillian, she was asked to write down what her ideal day would look like. to start, she’s been writing down which activities are energizing and which are draining. It has helped her to manufacture her day to be the kind of day that makes her want to get up and go to work in the morning.
She discovering that she doesn’t have to work as many hours as everyone one else. She can balance it out, earning a little less money while being happier.
We can make time to make each week more memorable and enjoyable when we spend less time on meanless activities.
When you take what earn and subtract what you spend, what you are left with is the gap. When you live paycheck to paycheck, there is no gap.
Corinne earns $120,000 a year as an accountant. She was in a five-year program where she got her Bachelor’s and Master’s degree that gave her enough requirements to take the CPA exam. Due to a scholarship, she graduated without any student loan debt.
A similar recent graduate starting out now would make around $50,000 a year. She was able to double her salary and excel by narrowing her focus and becoming an expert in that space.
In her industry, there are clearly defined roles with specific salary ranges. Increasing income requires the desire to progress and take on more responsibility. Becoming a partner wasn’t always on her radar, but she liked the idea of having ownership in the business.
Corinne hasn’t researched the details of the retirement payout for partners at her firm, but there is some form of payout in retirement. Since she is on the trajectory to becoming partner, being able to project the retirement payout will help to calculate her FI number.
One of Jonathan’s favorite income tax calculators is at Smartasset.com because it will incorporate state and local taxes. Using Corinne’s salary, he calculates her federal tax plus FICA and Social Security is $29,227. Since she maxes out her 401K, it reduces her tax to $23,000 and saves her more than $6,000 in income tax. The income she brings home is then $77,445, or around $6,500 per month.
Now looking at Corinne’s expenses, her mortgage is approximately $1,000 and she spends $500-550 a month on food. She does not have a car payment but between gas and other expenses, it’s around $100 a month. Utilities run $400 per month. Additional budget categories include dining out and shopping for $500, charitable giving at $200, housekeeping is $100, and her HOA bill is $150. Though travel is on hold at the moment, she’s like to budget $250 a month for vacations. And finally, an additional $200 was included to cover odds and ends.
Corinne’s total monthly cost-of-living is $3,375. To find out her gap, Jonathan takes her net monthly pay of $6,500 and subtracts her monthly expenses of $3,375 to calculate a gap of $3,125 each month.
Jonathan suggests putting the gap to work for her as quickly as possible and sending it to her investment strategy. Before doing this exercise, Corinne had no idea what her gap was and grabbed a random number to move to savings.
To start working on a plan for financial independence, Jonathan uses net worth and age. Corrine’s 401K balance is about $150K and her taxable account has another $100K making her invested net worth $250,000. She is 32 years old.
Using ChooseFI’s simple Retirement Projection calculator, Jonathan plugged in Corinne’s numbers. Her FI number is $1,012,500.
Next, Jonathan uses ChooseFI’s Future Value of Investments calculator to project how many years it will take Corinne to reach her FI number through both the growth of her current invested balance and her monthly contributions. Using an 8% rate of return, in 10 years Corinne will have $1.4 million far exceeding her FI number. Sometime between 7 and 8 years is when she will reach financial independence.
The exercise is energizing for Corinne who previously thought she would need to eat rice and beans to reach financial independence in 10 years. She was nervous to see the numbers but now finds it motivating. Her next step will be to ensure she’s taking that extra money every month and putting it to work for her.
Once you’ve got what you earn, what you spend, identify the gap, and decide what you’re going to do with the gap, you’ve got your FI plan in place.

Resources Mentioned In Today’s Conversation

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303 | Structuring Your Emergency Fund | Stereo Live Q&A Mar 12, 2021

In the second episode in the series of taking the show live online via the Stereo app, listeners ask questions and interact during a replay of this live podcast from Tuesday evening.
Experimenting with this new show format, Brad and Jonathan are adding to their talents stack and themselves getting better through the often mentioned concept of the aggregation of marginal gains.
Unfortunately, just because you make progress in an area, it doesn’t always mean you hold on to those gains. While your finances can be put on autopilot, physical and mental health are areas prone to backsliding. Take a little time for self-care.
While reaching financial independence isn’t as simple as packing your lunch every day, it can be symbolic of the transformation to a mindset to take care of all the small things. It’s that effort, in the aggregate, that gives you the space to increase your savings rate, optimize investments, and earn market gains.
Brad has been trying to apply the concept to his health, which has also required that he overcome several limiting beliefs. All of the changes he’s been making are small, like stretching, doing pushups, or yoga in the evening while watching TV with his family. And after hearing about how important vitamin D is to metabolic health, he tested his levels and found out they were dangerously low.
In his attempt to live a more examined life, Brad has noticed certain foods lead to inflammation, and that his energy level fluctuates with the seasons.
Likewise, Jonathan has been examining his use of caffeine and trying to decide if he is better off with it or without it. He would prefer to have a natural, steady energy state. He’s noticed that by decreasing processed sugars, he has more energy and wakes up fresher.
Brad has been using a 10-minute nidra yoga YouTube video as a guided sleep meditation and says it’s like getting a two-hour nap.
Listener Jackie left a voicemail asking about taking a little risk by putting emergency funds into the bond market. Jonathan says there’s no one answer, but he thinks we need to look at what we’re protecting ourselves against and the opportunity cost that comes with having a lot of money on hand to handle emergencies.
Most of us will benefit from having $1,000 in the bank to start, and then moving to one or two months of expenses in cash. As your net worth grows, Jonathan would prefer to have the money in a fully-funded emergency fund grow.
Since recording episode 066 with Big ERN, Brad has been trying to come up with a true financial emergency scenario. He’s been unable to think of a scenario when he might need cash in a hurry that couldn’t be covered immediately with a credit card. In a true emergency, he has invested assets he could sell and transfer to his checking account to then pay the credit card bill.
When you keep an emergency fund in a savings account, the opportunity costs are the potential gains that could have been made by having those funds invested.
Jonathan keeps a couple of months of cash flow. In addition to retirement investments, he also has a taxable brokerage account with M1 Finance. His investment pies in M1 have been allocated for different timelines. For his shorter timeline fund, he thinks about it more like a retiree would and wants it stable. Therefore, he keeps it in a fund that is negatively correlated to the stock market, such as bonds and precious metals.
For emergencies, one of the benefits of M1 Borrow is access to a low-interest margin loan against your invested non-retirement assets.
The second listener voicemail asks about the ability to convert and access 401K investments after a five-year waiting period for someone who retires early. Brad believes the listener has a Roth 401K, in which contributions are made with after-tax dollars and may be withdrawn tax-free. The five-year waiting requirement applies to Roth IRA Conversion where traditional 401K contributions are converted to a Roth IRA and it is a taxable event. When rolling over money from a Roth 401K to a Roth IRA, it is not taxable and there’s no wait to access contributions. At 59 and a half, all of the money may be accessed penalty-free.
A listener in the Netherlands wanted to know if Brad and Jonathan would consider having a guest from another country on the podcast. Since the FI movement is worldwide, ChooseFI has listeners from all over. Exploring non-American guests is definitely something to be examined for general FI topics, as it would be difficult to speak about other countries’ tax codes. The ChooseFI local groups in international locations would be a great option and resource.
Listener Gavin asks about how best to decide post-FI plans. Jonathan stresses that FI is a number and not an action. It does not mean you have to leave your job. FI gives you options, time, and resources and allows you to explore what you want to do with those. Having some space financially allows you to make choices from a position of power. You can make small-scale tests before wholesale life choices. The money is the easy part. Figuring out what lights you up is the difficult part.
Listener Natalie has connected with the idea of maximizing her savings but is sitting a significant amount of cash while she decides between renting and buying. She wants to know how easy it is to put money in the market if she might need it in three to five years. Of the big traditional brokerages, Jonathan thinks Fidelity is the easiest to learn from a user interface perspective.
Of the software-based institutions, he likes M1. Brad says from purely a conceptual-level, it’s easy to get money in and out of the market as they aren’t subject to the same rules retirement accounts are. However, it’s good to note that the stock markets have business hours and may be closed when you want to make a transaction and that some companies like M1 limit when transactions can take place.
In live feedback of the 401K discussion, a listener pointed out that there is a phantom five-year clock on in-plan Roth conversions.
Marjorie left a voicemail that she is trying to get her family back in Puerto Rico on board and is looking for Spanish language FI resources. Jonathan has been helping Lorena start a Spanish language personal finance podcast, De Peso a Peso.

Resources Mentioned In Today’s Conversation

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302| Navigating a Multigenerational Household | The Financial Tortoise Mar 08, 2021

We are checking back in with Vivan from our Households of FI series who has been paired with mentor, Tae from Financial Tortoise, to go over strategies, best practices, and considerations for multiple generations living under one roof.
In many Asian cultures, adult children are responsible for taking care of and being financially responsible for aging parents while also raising their own children, often referred to as the Sandwich Generation.
Whether or not being financially responsible for parents is part of your culture, caring for or assisting them to make decisions as they age may be in your future.
Tae writes from the perspective of the Sandwich Generation on his blog, Financial Tortoise. Living with him and his wife are his two kids and both of his parents. During the last 10 years in this living arrangement, he’s paid off $105,000 in student loans and is pursuing financial independence.
Vivian has been fighting breast cancer while dealing with a separation and child custody battle. She also has her mom living with her, who is helping out with her child, but she finds that there are generational differences leading to misunderstandings. She has questions about what kind of disability or long-term care insurance she would be getting for them.
At 61, Vivian’s mom doesn’t yet qualify for Medicare and hasn’t applied for Social Security, but she does have a small pension from working for the Los Angeles School District. Tae thinks there may be healthcare gap insurance available if her mom qualifies.
Her mom retired from work last year. If she applies for Social Security early at 62, she’ll earn 20-30% less. If she waits until age 700, she’ll earn 20-30% more. As long as she has paid into Social Security for at least 10 years, she is eligible. If she hasn’t been receiving paper summary statements, she can check online and see what her estimated benefits will be.
Tae’s parents moved in with him right when they began collecting Social Security. They didn’t understand retirement accounts, but they did have real estate and rolled over equity into the down payment for a new home they could all live in and Tae took over the mortgage.
Since Vivian’s mom lives with her, she shouldn’t have major expenses and her pension and Social Security should be enough to live one, but she would like to travel so Tae suggests looking into travel hacking.
As for healthcare, Vivian’s mom retired because of health issues and is no longer able to work. She currently pays for private insurance, but at 61, there isn’t an ideal solution until age 65 when she becomes eligible for Medicare. She will need to enroll 3 months before she turns 65. Basic Medicare is covered, but if she wants things like hospital visits covered, she will pay a premium that is taken directly from Social Security if she is collecting it.
Tae does not have long-term care insurance for his parents because it is hard to find affordable long-term care insurance now, but skilled nursing and assisted living may be alternatives. The best thing you can do is to take care of yourself. He thinks people in the FI community have the advantage of having more time to spend figuring out a care solution when the time comes.
Vivian asked if Tae his FI plan included healthcare spending for his parents. He does not, but he does plan for them to age in place, which means maintaining the larger home.
Living through the Vietnam war has created conflicts in some areas, like hoarding food and water. Her mother helps out with cooking, child care, and food costs, but Vivian pays for everything else.
One of the reasons why Tae decided to try co-habiting with his parents was for help with childcare. It helped them fully commit to their careers. While there can be a huge cultural chasm when living with your parents as adults, Tae has learned empathy and takes time to try and understand where they are coming from.
Rather than try to control what his parents are doing with their money, Tae tries to ensure his own expenses are as strong as possible. If something were to happen with his parents, if his own finances are strong, he’ll be able to figure out how to deal with it.
Vivian is trying to save 50% of her income as a pharmacist and her parents think she is being stingy, which runs counter to many Asian cultures where you wear your wealth.
She was excited when she found ChooseFI because she previously believed you needed to have your own business to become financially independent. She’s now following the advice in The Simple Path to Wealth.
Saving for college is another question Vivian has. Tae’s children are 4 and 6 but he’s started 529 accounts for them since there is some flexibility with them. However, he believes the future of work could look different. He thinks about how he can help his children become productive adults rather than blindly save for college.
Tae thinks it’s good to start thinking about estate planning with her parents. He and his wife just did their own, setting up a trust and power of attorney which motivated his parents to do the same.
There is a cost for everything and there are both positives and negatives when putting families together under one roof. You have to be aware of it going in.
The major takeaways from Tae and Vivian’s conversation are the need for managing the gap before Medicare kicks in, navigating Social Security, and feed estate planning.

Tae

Website: Financial Tortoise

Resources Mentioned In Today’s Conversation

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301| Money and Relationships | Part 2 Mar 05, 2021

What are you getting hung up on with relationships and money? We continue the conversation in Part 2 of the Relationships and Money series with Jillian Johnsrud.
Although March is finally here and the sunshine is motivating Jonathan to push away the processed carbs in favor of broccoli and hummus, Richmond’s recent ice storms had Brad using his stash of travel rewards for the first time in over a year.
Travel rewards come in handy at home too. After losing power from the storm, Brad called up a local Hyatt to see if they had power and was able to use 5,000 with Hyatt to book a room, and quickly move his family out of a cold home for the night. If he had been short on Hyatt points, he could have quickly transferred Chase Ultimate Rewards points over to cover the rate.
Even if you aren’t ready to travel now, plan ahead and start stockpiling travel rewards points now so you have them once you do want to travel again. Take the travel course at ChooseFI.com/travel to learn how.
The next roundup episodes will feature Alan Donegan and focus on building a business in 2021. Submit a voicemail with the questions and concerns you would like to have addressed at ChooseFI.com/voicemail.
Have a question on a different topic? Submit your voicemail and join the live radio shows held on Stereo, Tuesdays at 7:30 pm Eastern.
In Episode 300 with Jillian, she discussed how your past money story motivates you and creates fear as it pertains to money and relationships. Part 2 of the series examines being financially independent while still dependent.
Listener Asia is engaged and works full-time while her partner is still going to school and works part-time. They each have vastly different money stories and have started combining finances. Her partner is still receiving some financial support from her parents. While her partner wants to begin become more independent, Asia wonders if it would be smarter to continue as things are.
Jonathan sees three issues with Asia and her partner’s situation: attachment, boundaries, and economics. For Jillian, one of the elements was what habits and practices Asia’s fiance can take to feel like a financial grown-up and equal partner in the relationship. She also considered what it might mean for the fiance to receive from her parents, as well as what it might mean to the fiance’s parent to give.
Jonathan sees nothing wrong with accepting help so long as there are no boundary or communication issues or strings attached. Brad thinks it sounds like a positive situation but is also concerned about ulterior motives.
After graduating college, Brad lived at home with his parents while saving 90% of his income which gave him a huge jumpstart on his path to FI.
Jonathan noted that there could potentially be some tax-filing issues that could be related to the child tax credit and paying for dependent healthcare that could be important to figure out.
Jillian says society’s rules don’t matter, you can write your own rules of what it means to be a financial grown-up without there being a contradiction. Help can be a sweet thing family can do, but even she had issues with family members trying to control her with financial assistance while she went to school.
There are other things you can do to feel like a financial grown-up, like tracking expenses or coming up with a debt repayment plan. You can be a financial grown-up, take advantage of opportunities without taking advantage of relatives as long as your goals are aligned and they want to see you succeed.
Brad wants to be able to help his kids out when they are older. He respects parents who charge their children rent and teach them to be financially responsible, but he hopes to instill those lessons throughout childhood.
Listener Precious will be getting married soon. So far they have been sending money back and forth to each other, but she wants to be more efficient and is wondering what the best way to begin combining finances is.
While Jillian wants to believe all love will last forever, she advises against opening up a credit card together in the first few years of marriage due to the bills being divided up in a painful divorce process. However, opening up a joint checking account is a good baby step since at worst only the money in the account can be spent without going into debt. How much each person contributes and what bills get paid from it opens up the lines of communication.
When you are young and your finances are simple, combining all of your finances makes a lot of sense. In contrast, Jillian’s financial life is much more complicated and if she had to remarry, she isn’t sure she would combine her finances with anyone else.
Credit card and car debt can be kept separate, but it’s usually better to have both names on a home loan since real estate is an asset being grown together. But also so that it doesn’t become a painful process to untether if necessary in the future.
In a new marriage, Jonathan says he wouldn’t feel comfortable being a co-signer on a credit card since he would be legally responsible but have no insight into what was going on until it crashes into a wall. On the other hand, adding an authorized user gives you more control and insight into how the card is being used and it can be revoked.
Brad and Jonathan have their own bobblehead figure! It was given to them by All-Star Money for being creators of content who inspire readers to improve their financial situations and helped develop an engaged personal finance community.

Jillian Johnsrud

Website: JillianJohnsrud.com
Podcast: Everyday Courage

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300 | Relationships and Money | Jillian Johnsrud Mar 01, 2021

Money is one of the top three things people struggle to communicate with, falling right below sex and above our reasons and motivations for work.
In her coaching practice, Jillian finds clients will be very open in one-on-one sessions, but when working with couples, it becomes much more uncomfortable.
Jillian believes this discomfort is because discussions of things like sex and money happened behind closed doors and weren’t modeled for us growing up.
In response to a call put out for questions in Brad’s FI Weekly newsletter, listeners submitted their questions for Jillian about relationships and money.
The first comes from Jonesy who had a question about keeping the lines of communication open about money with a significant other when they are at different stages. He is working and beginning to build his portfolio and savings, while his significant other is still in school and struggling to make ends meet.
Jillian suggests first trying to find common ground to discuss money. You can start with telling your own money stories, like how your parents spent money or what you wish they had spent money on. It’s important to feel seen and heard. Sharing childhood stories are opportunities to start having conversations to begin learning about each other financially.
Help make the conversation not feel like a trap by being genuinely curious about your partner’s life and experience. You can approach discussions about money much in the same way couples talk about the parenting they witnessed and experienced.
Pick one or two questions to open up the conversation and put your partner in a relaxed state. Ensure they feel seen and heard before transitioning into conversations on budgets or debt payoff.
Taking the small step of sharing money stories can help the couple come away with positive feelings, feel closer, and know just a little bit more about each other.
Jillian and her husband did not communicate about money well during the first few years of their marriage. They had very different money stories and didn’t know how to explain why they were reacting or felt the way they were.
Breaking the big scary stuff down into bite-sized non-intimidating questions is something Jillian guides users through in her latest workbook, part of which asks us to examine our parents’ patterns, whether or not we have copied or rebelled against them, if what was inherited is serving you well, and do you want to take it forward.
Because Jonesy and his partner aren’t married, Jillian says it’s okay to skip the specifics in the middle, like savings rates and budgets, and discuss the outcome, like a common goal to work toward together.
If you work on learning to talk about money, understanding each other financially, and can work toward a common goal, by the time you are on the same page, the middle stuff will be easier.
Listener Sam wants to know if it can work when one half of a couple is excited about being on the FI path but the other half says FI is not for them. Sam has been on her journey for three years and has a 50% savings rate and plans to retire early, but recently married and her husband’s savings rate is far from the same and he plans on working until 60. They currently keep their finances separate.
Jillian thinks Sam and her husband could benefit from having conversations about work, its role, and how it ties to identity. It’s feasible for one person to retire while the other works, but it can create a rift unless they understand each other’s stories and mindsets.
Brad wonders how Sam and her husband keeping their finances separate could work logically in the long-term. Jillian thinks on the surface it cold work so long as they work on everything below the surface and sure each is truly comfortable with the situation.
Listener Titan wants to know how to make the monthly chart tracking their progress toward FI more fun and exciting for his significant other. Unfortunately, Jillian thinks Titan’s partner will never be excited about it. In any relationship, it seems like there’s one who likes worksheets and graphs and one who prefers to talk about things. She suggests not focusing on the numbers on the graph and instead make it about the amazing life they are creating or whatever is exciting for them.
Jonathan can sympathize with Titan’s situation but says what were are looking for is trust that you are building an awesome life together and moving forward in the same direction.
Jillian’s course, One Hour Millionaire, is a 21-day program with the premise that it should only take you one hour a month to set your trajectory to a million-dollar net worth.

Website: JillianJohnsrud.com
Podcast: Everyday Courage

Resources Mentioned In Today’s Conversation

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299 | What's Stopping You from Reaching FI? Feb 26, 2021

It's ChooseFI's first live radio show! Recorded live on Tuesdays at 7:30 pm Eastern using an app called Stereo, the live shows will be replayed for the Friday Roundup episode.
The topic of this interactive live show is: “What is stopping you from reaching financial independence?”.
Lorraine has a question about allocation and investing in one of Vanguard’s funds like VTI or VTSAX but the answer is situation-dependent.
It’s important o know the investing timeline Lorraine is looking at, but hopefully, it’s investing for the long-term. Investing for the long-term provides for the highest likelihood of success. However, it’s money needed for something critical like an emergency fund, maybe consider keeping what you need in a savings account and investing the rest.
Other factors to consider are risk tolerance, net worth, job security, and whether you have an emergency fund. How sacred you were in March is a good indicator of your risk tolerance. The right allocation will allow you to sleep at night, be confident in your plan, and stay the course.
The best thing to do is take action and get invested without getting hung up on the details. Keeping your expenses low with low-cost broad-based index funds, like total stock market or S&P 500 index funds, make a significant difference over your investing lifetime.
Getting to the point where you can make work optional can often seem like luck. However, the FI community believes we have the power to impact change in our lives and in our communities. Taking small actions to optimize and seeing that you can still live a life without a feeling of deprivation becomes a motivating positive feedback loop.
No matter how much you earn, the message of FI can be valuable. If you are living paycheck-to-paycheck, it doesn’t matter how much you earn. You need some amount of gap between what you earn and what you spend.
Growing the gap by cutting expenses is usually the most effective place to start, but you can widen the gap by earning more as well. It doesn’t mean going back to school or taking on a second job delivering pizzas. One way to increase your income is by negotiating your salary.
If you research the highest paying professions, the search leads to a list of six-figure careers, however, the return on investment in these career paths is not what it seems. They may require a significant number of years in school and the student loan debt that goes along with it.
Today it’s possible to skip a degree program in favor of a certificate program and land a high-paying job in less time and at less expense.
Matthew has been listening to the show for about six months. One question he’s had is how people are retiring early when you cannot withdraw from retirement accounts without a penalty until you reach the age of 59.5.
There are strategies for investing in retirement accounts where it goes in tax-free, grows tax-free, and is withdrawn tax-free ahead of the traditional retirement age.
Investing in something like a traditional 401K account lowers your taxable income and gives you a current tax deduction. Once you reach FI and decide to not work anymore and are living off savings, you are earning $0. You can at that time pull take money from your 401k and convert it into a Roth IRA, an after-tax account, in a process known as a Roth IRA Conversion Ladder.
The conversion is a taxable event, however, your earned income is $0 so the only amount subject to tax is what you convert. Even then, the total amount won’t be taxed. You can still take the standard deduction and only be taxed on the remainder at the lowest possible marginal tax rate. The account will then grow tax-free.
Another method to access 401K retirement funds a few years earlier is with Rule of 55.
One listener wants to know what other podcasters or influencers Brad and Jonathan follow. Brad’s long-time favorite is The Tim Ferris Show, Dr. Peter Attia’s The Drive, and Naval. Jonathan’s podcast listening tends to be focused on what will help build his talent stack. On YouTube, he likes Real Coffee with Scott Adams.
The book by Scott Adams, How to Fail at Almost Everything and Still Win Big, had helped Jonathan change his mindset. He went from fearing failure, to understanding there is a process and failure is completely fine.
Brad thinks the best podcast that exists is Armchair Expert with Dax Shepard.
Listener Josh left a voicemail saying the episode featuring the Millionaire Educator and the mentality of keeping money on your side of the ledger was one of the most impactful shows for him. The Millionaire Educator learned the rules and used them to his advantage to reduce his tax rate to zero.
When the question of dream podcast guests came up, Jonathan says he’s going to reach out to Scott Adams, while Brad’s dream guest would be Mark Cuban for his open-minded and entrepreneurial spirit. Send in your ideas for who you’d like to hear on the show.
The next voicemail asked when is the best to move from 100% equities to bonds if you are about halfway to FI. Jonathan projects he’ll be at FI within 10 years and currently doesn’t have anything in bonds. He thinks he would make the move to become more conservative once he has a clear exit date in mind, such as within five years. The conventional split is 60% stocks and 40% bonds, but it should match your risk tolerance.
Brad mentioned that Big Ern discussed how paying off your mortgage is an alternative to holding bonds in your portfolio. Although Brad has reached FI, he doesn’t have any bonds either. He thinks a young adult with a long time horizon, equities have the highest likelihood for maximizing net worth.
If you can reduce your structural expenses at the point of retirement, it could act as a substitute for having bonds. Passive income is another alternative.
Jonathan is currently allowing his equities to continue to grow, but before he retires, he will pay off his mortgage and get rid of that structural expense.

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298 | Habits For Wealth Building | Rich and Regular Feb 22, 2021

We are checking back in with our Households of FI family, Martin and Ayesha, who have been paired with mentors, Julien and Kiersten of Rich and Regular.
Kiersten and Julien live in Atlanta and started working toward FIRE before they married five to six years ago and have paid off $200,o00 in debt, including their mortgage. They now share their journey on their blog rich & REGULAR.
Ayesha and Martin live in Chicago and found ChooseFI in January 2020 and jumped in with both feet. Martin is a natural saver and had been a positive financial influence on Ayesha before finding FI so they had done a decent job managing their money.
Martin was researching dividend investing after it was recommended by Ayesha's uncle who retired at 55. Ayesha felt like her aunt and uncle had the most fabulous retirement life she'd ever seen. Thanks to his example over the last 25 years, their goal is to get to where he is.
Julien had a similar retirement role model in his life. A close family friend was a Registered Nurse who retried early and showed him that there is a lot of life left after 40.
Since finding FI, and partly thanks to Covid, Martin and Ayesha's savings rate has increased. It has made them aware of all the frivolous, non-essential ways they spent money before.
Ayesha hates budgets and doesn't want to track every penny of her spending. She was out of work for four months during Covid and they found that they didn't miss her income and it showed them that they could save a good amount of money without feeling constrained or deprived.
Having a quantifiable goal and a clear target has helped provide clarity in what they are trying to accomplish.
Martin enjoys trying to optimize their spending and counting the dollars they save. When they decided to get a new television, he used Offer Up to do his research and purchased a flat-screen plasma HDTV for $40.
Julien used to track every single expense and look for new savings opportunities each quarter. But now, optimizing their spending has become such a deeply ingrained habit that he no longer feels the need to look at their budget. He says it becomes like muscle memory once you sort out your own system.
Ayesha feels like when you can simplify your life and have good habits, your life can smoothly and asked what Julien and Kiersten's top habits are.
Kiersten says doing laundry regularly keeps them from having a ton of extra clothes. She and their son have a capsule wardrobe with 20-30 pieces of matching items. She also keeps the kitchen sink clear of dishes to cut down on kitchen accessories.
Julien says they have just the right amount of things they need and notes that there is stress associated with the quantity and clutter in our lives.
Having too many things adds to decision anxiety and analysis paralysis. Instead, whether it is life or a financial strategy, find a handful of things you can nail every single time and ignore everything else.
Julien also says that he has never made an investment in himself that hasn't paid off handsomely, no matter if it is exercise equipment, a book, or a course. Don't allow frugality to prevent you from paying to learn new learning opportunities. New skills can improve your ability to earn more income or make you more marketable.
Kiersten likes to save receipts. if the item she purchased sits for several days, she didn't need it and will return it. She also purges the house of items regularly.
As far as community goes, Ayesha and Martin are doing okay. In addition to family, they have a group of friends who meet to share ideas on investing and becoming financially free. However, they aren't as familiar with the concept of FI so Ayesha feels like they don't have a like-minded community
Julien notes that, especially for black people, the pursuit of financial independence can be a very lonely experience. Telling people about FI doesn't work. You have to show them, like when you get to the point where you can take a two-week vacation or a month off from work.
Kiersten and Julien suggest focusing on influencing the next generation. They use their freedom to step up and help out and pick up the slack with their friends' children.
When it comes to building community, stay open-minded. It takes time to find your best friends and others whose values closely align with yours, but you don't need to divorce yourself from your social circle.
Like their budget, Julien doesn't check his investment portfolio very often because they won't be touching that money for 10-20 years. His attention is better spent on building the business and maintaining a healthy lifestyle. They make decisions on where to invest income every quarter.
You can see the crash coming on other people's lives despite the advice you may have given. Still, Julien says to leave the gate open and don't be judgemental. You may not have been the right messenger for that message.
Before starting rich and REGULAR, Julien was working for a company he loved but was underpaid. When his company paid an influencer $10,000 for posting a photo on Instagram, it motivated him to start earning income in other ways.
Since they already had rental real estate, he was confident he could earn more outside of work. He was eventual led into the world of digital entrepreneurship.
When Kiersten was finally comfortable enough to leave her job, they were not yet at FI, but a year's worth of runway that enabled her to quit and devote that time to building the blog.
The FI community often talks about what number is needed to hit FI, but that number is arbitrary. A single dip in the stock market can impact the number. Julien and Kiersten ask if you were counting on drawing down that money, what would you do for money now?
Most people only earn income one way, through earned income. They don't know enjoy the quality of that income over any other.
Kiersten and Julien attend FI meetups in Atlanta and other places and encourage Martin and Ayesha to do the same when they are able.
Julien had challenges at the beginning of his journey. He grew up poor and was judgemental about his beliefs on spending. He found virtue in saving and said hurtful things to Kiersten because he felt she was spoiled. He's since learned leading with shame creates barriers.
Whether a natural saver or a natural spender, everybody is spending. Spending today can be rewarding and motivating.
Kiersten was also judgemental in a different way. She thought she knew how her life was going to be and was closed-minded. She struggled with seeing a different version of herself. She had to be open and let go of her ideas of what certain aspects of her life would look like.
If they came into a windfall of money and weren't allowed to invest in themselves or their business, they would invest the money in low-cost index funds and then let it grow and forget about it.
Discipline equals freedom. When you set up a framework for life by setting up non-negotiable things, it allows you the freedom to spend time doing the things you'd rather be doing.
Brad agreed with Julien's sentiment about investing in yourself and that the spirit of frugality can get in the way of that. Watch out for it.
The local groups are the heartbeat of the FI community. They aren't made up of podcasters and bloggers. They are regular people who are getting together and trying to live better lives.

Website: rich and REGULAR
YouTube: Money on the Table

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297 | From Pandemic Layoff to $100k+ | A Salesforce Success Story |Anita Smith and Bradley Rice Feb 19, 2021

What You'll Get Out Of Today's Show

If you are willing to look outside your comfort zone, grab good information, and take action on it, you can change your life in a matter of weeks or months.
One of the hardest-hit industries during the pandemic has been hospitality. Working in that industry, Anita was looking down a long dark tunnel before stumbling upon the FI community.
When Anita found ChooseFI in August, she jumped right in, taking action and interacting with Brad through the FI Weekly and submitting her frugal wins of the week.
By listening to the podcast, Anita heard about Jonathan starting up the Talent Stacker podcast and the program he put together with Bradley Rice on Salesforce career development. Anita gave it a shot and her results blew Jonathan and Bradley's mind.
The results Anita has had are not an outlier. It's what others are also seeing every single week.
Back in the spring of 2019, Bradley was on the show to talk about Salesforce and living a life by design. After Bradley discussed earning $200K a year working 15-20 hours a week, the listening audience really responded.
Based on that interest, a Salesforce group was started for the community and people began landing Salesforce jobs. In just two years, the group grew to 5,000 members learning from each other.
A year ago, Anita was working as a revenue manager for a hotel connected to a convention center. At that time, the pandemic was accelerating and group after group began canceling their events. As a result, she was furloughed in March.
Understanding that hospitality wasn't going to recover anytime soon, Anita decided to be proactive, began learning, and figuring out what her next move would be.
In addition to taking classes online, Anita researched Fortune's top places to work. The first time she heard of Salesforce was from that list but was turned off at the thought of sales. After a little research, she discovered sales isn't what they do.
She signed up for Trailhead, Salesforces's online learning account, and did it for one day before concluding it was awesome. But she wondered it was real and if was as easy as it seemed.
After receiving more bad news from her employer, Anita was motivated to learn more. She found ChooseFI and binge listened to over a hundred episodes when she heard about Talent Stacker, Salesforce (again), and the free 5-Day Challenge.
She ended up in the paid program and because she had been laid off, she used her time to learn everything she could like it was her full-time job.
One month after starting the program, she took the first admin certification program and passed. After that, she used all of the tips from the program and landed a good-paying job in January.
Prior to the pandemic, Anita was in a financially stable place. She had no debt other than a car payment, although after being laid off she was forced to move in with her boyfriend.
She says in her previous hospitality job, she was on a path to get o the kind of pay she is earning now, it just would have taken a lot longer.
Bradley says what Anita has done is possible because cloud-based technology is less-impacted by things like the pandemic because they are skilled positions, are able to be done remotely, and without a lot of change management.
There aren't enough skilled Salesforce professionals to fill all the available positions. To help fill the gaps, Salesforce developed Trailhead, a free online training app, which removed some of the barriers to entry.
Being able to study inline for a few months and then land a $60-80K per year job sounded too good to be true. This is one of those occasions when something that sounds too good to be true really is true.
If you don't have basic computer skills, a Salesforce career may not be for you. However, if you like the thought of helping companies generate new leads and support new customers, it might be a good fit.
There's so much information on Salesforce that it can seem overwhelming. Anita explains that she is reorganizing the business to help companies become more efficient.
A Salesforce professional helps a company use the software to find more customers, sell to those customers, retain the customers, and secure the customer's data.
The majority of individuals can come away from training earning $60-80K a year. Anita surpassed that when her first offer was six figures and she doubled her previous salary.
Bradley says the career trajectory quickly increases from there. Even someone who isn't leaning in will likely reach six figures after three years and top out around $130K with $20-30K bonuses.
The more entrepreneurial-minded can strike out and become independent consultants and earn even more. Bradley makes $200K a year working just 20 hours a week.
Based on his return on investment, Jonathan wouldn't go to college if this program was available to him. He spent eight years in school and came away with $168K in debt, rather than six months of training for a couple of thousand dollars. His net worth would be two to three times higher if he had.
That doesn't imply ChooseFI is anti-college. Rather, the takeaway is to think differently, look at the world for how it is, and see opportunities. The traditional path may not be for you.
Taking a hybrid approach can be a benefit. Go ahead and go to college, but spend a summer in a Salesforce career development program. It helps you understand what Salesforce is, gets you halfway through a program, and helps you to decide if it's right for you.
You can do this for free. Fraining is available on Trailhead. What the free Salesforce 5-Day Challenge does is show you how to get started in Trailhead and show you a clear path, and help you decide if Salesforce is for you in just 30 minutes a day.
Anita chose to go through the paid portion of the course because of the clear path it offered.
Announcing the introduction of a new live interactive component to the show! In an experiment over the next ten weeks, we'll be testing it every Tuesday night at 7:30 Eastern, starting February 23rd.
Using an app called Stereo, we'll go live with voicemails and questions every Tuesday. Access the event at ChooseFI.com/live.

Resources Mentioned In Today's Conversation

Take part in the Tuesday live events at ChooseFI.com/live.
ChooseFI Episode 117 Making the Case for Part Time with Bradley Rice
Check out the free five-day Salesforce challenge.

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296 | Transition Planning from a Military Career on the Path to FI |Doug Nordman Feb 15, 2021

We are circling back to check in with our Households of FI families. First up are Matt and Megan, our international, dual military couple.
Having a military pension is like having multiple lottery tickets. You have both healthcare and an inflation-fighting pension, but how many of these lottery tickets do you need to really crush this game?
Naval service is Doug Nordman's family business. In addition to his own 20 years of service in the Navy, his wife almost had 20 years of active duty service in the Navy before finishing her career in the Reserves. And then their daughter joined the Navy on an ROTC scholarship and married a Naval Officer.
While dual-military couples are a small demographic that hasn't been extensively studied, Doug says even if they earn just one pension, they will likely have more money than they need for the rest of their lives just because of the pension and healthcare.
Matt says the US military pension system is much more simple than for the UK's Royal Navy. He and Megan are working toward FI with their investments alone and consider the pensions to be an additional comfort.
Matt has served for 11 years so far and the Royal Navy's systems provide a pension based on each year of service. Megan has been in the US Navy for 15 years after doing her first 10 years enlisted. She needs to fulfill 22 years before being eligible for retirement as a Naval Officer.
Doug says when you're in the military with the opportunity to earn an active duty or Reserve pension, you have four lottery tickets and you only need to have one of them to pay off because you solve the healthcare problem and have an inflation-fighting life annuity with just one.
If serving in the military is still challenging and fulfilling, stay in as long as you want, but when the fun stops, don't be afraid to leave.
Don't fall for the military inferiority complex. Coming from the military you already have human capital. Employers can train you on the basic skills for a job, but they can't train a new employee on those soft skills earned in a military career.
Co-locating as an international dual military couple has its challenges. Matt may soon be getting a medical discharge from the Royal Navy which will help solve that issue for him and Megan.
Matt notes the US military provides spouses with opportunities for increasing human capital, like free courses or paying for college. Doug thinks obtaining certifications and licenses is going the help Matt find a job in the US more than an advanced degree because he's already proven that he can do things.
Networking will be key. After having conversations with others about how he can fit in, what he can help them with, and what he knows how to do, he will make a shift to an abundance mindset.
Megan notes that Doug lives in a high cost of living area. He says having a high savings rate on the path to FI, as well as frugality are what enables it. In most high cost of living cities, it's housing that is the biggest expense. After you figure that out, everything else falls into place.
Doug and his wife bought crappy houses and put sweat equity into them before renting them out. They also eat local, optimize spending, and slow travel. Spending in the areas that provide the most value gives you margin.
People who have been in the military have an appreciation for the line between frugality and deprivation. Frugality is optimizing your spending.
The transition is scary and stressful, but statistics show that within two years of getting out and starting a civilian career, half of all veterans change jobs. It's not because they can't hack it, it's because they have figured out how to get more money, get a better job, or move to a better location. They've cracked the code in a corporate environment.
Megan is torn with her TSP. She doesn't know if she should go traditional or Roth. Doug says that, anecdotally, in the military where a third of your compensation is not taxed, you are probably in the lowest tax bracket of your life so all investments now should probably be Roth TSP or Roth IRA.
If doing all Roth contributions doesn't sit well with you, split the difference and do half and half.
Roth's weren't available when Doug was active duty and he spent time doing Roth conversions for his and his wife's accounts.
In the first full year after retirement, your income probably goes down a little bit and would be a good time to look at converting a little bit and then chipping away at each year.
Doug believes the job offers will come following military retirement. He had offers but for him, it was always about the drawbacks to the offer than the good things they offered. If he were looking today, he would look for remote work where he could dictate his schedule to remove all the drawbacks.
He advises Matt and Megan to go build their own career, to their own quality of life, and not to feel constrained to themselves into anyone else's idea of how their working years should be.
While Doug gutted out his 20 years of service, his wife gave up 20 years' worth of pension for quality of life. Even so, he says he overshot the finish line by about $1 million. If he could buy back eight years of active duty with that extra money, he would.
Megan wondered if Tricare covers military retirees who live abroad. Doug confirms that it does, noting that it's called Tricare Overseas on the Tricare website. He and his wife get all of their dental care done when they travel overseas and in Bangkok, they get their routine physicals. He thinks the healthcare advantages are much more valuable than the pension boost from an additional year or two of working.
In addition to questions about how to teach kids about financial independence, Doug is often asked about the sustainability of financial independence. After living it for 18 years, he can confirm assure people that the money will last.
It's a good idea to stay flexible. Chances are after retirement you won't be doing one thing for the next four or five decades. Instead consider it a series of five to ten, or even three to five-year increments.
Having the security of an inflation-adjusted life annuity takes the stress out of economic downturns. Doug and his wife went through the internet recession in 2002, the great recession of 2008, and watched their wealth compound over the last 18 years. During the coronavirus downturn, they made a large donation to the Hawaii foodbank and put money into their granddaughter's 529 account.
Megan has heard that a high VA Disability rating can negatively impact the military pension. Doug says to make sure every medical problem is documented in your medical record.
Once you leave active duty or reserves, the VA is going to do an assessment of your disability and award compensation. However, the law states that you can't have dual compensation. With a VA rating less than 50%, you give up some pension in exchange for VA disability compensation but the VA compensation is free from income tax.
With a VA disability rating of 50% or higher, you are under a system of Concurrent Retirement and Disability Pay (CRDP). With it, you get both the pension and VA disability compensation. With respect to the inflation-adjusted pension, Doug says that in 18 years, and with three years where the inflation rate was 0%, his pension has risen just over 40% while his spending has not gone up 40%.
The certificates and licenses Doug talked about being more valuable than a degree are right in line with the Salesforce challenge discussed on Talent Stacker and ChoodeFI.

Resources Mentioned In Today's Conversation

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295 | Emergency Fund for the Zombie Apocalypse Feb 12, 2021

This Friday's episode continues with the theme of looking back at how our perspective has changed since the show began. What has changed, have we pivoted, and what do we feel more confident about now than we did then?
Last Friday Brad shared the saga of trying to find out how much a CT scan was going to cost him. In response to the story, members of the community reached out with their ideas for saving on the cost.
One listener shared a link for MDsave.com, a company that contracts with different healthcare providers to provide very specific pricing for a number of healthcare-related services and procedures that you pay in advance for.
Using the CPT code for his procedure, Brad discovered there were no providers in his area, but there was a good number in Charlottesville about an hour away. Had he used this website, he could have paid under $300 for his CT scan. Without using it, his insurance company was billed $2,083.
For prescription drug needs, there is a similar website called GoodRX.com
The healthcare system is broken. Price transparency in healthcare, like both of these websites offer, cuts the middleman out and lowers costs.
Jonathan suspects that anytime you are using these apps you are sacrificing some privacy.
If you have a high-deductible plan and rarely if ever reach it, you may be better with the discount as you cannot double-dip and need to choose whether you go through the app/discount card or your insurance company. However, prescriptions do qualify as HSA reimbursable expenses.
Emergency funds are a part of every financial plan, with most stating a fully funded fund contains three to six months' worth of expenses.
ChooseFI has pushed back a little on the standard emergency fund concept, asking if you really need one, what does it need to look like, and what are we protecting ourselves from?
Both Brad and Jonathan's perspective on the emergency fund has changed over the years. Most personal finance experts conceptualize it as money sitting around doing nothing waiting for an emergency to occur.
The further down the path to FI you travel, the role of the emergency fund begins to change. At what point should you stop allowing your emergency fund to lose value from inflation and invest it instead?
When first starting out, a fully-funded emergency benefit provides psychological benefits. But 1o-15 years down the path to FI, there are very few true emergencies. There is an opportunity cost to your money sitting on the sidelines. Could you have that money invested, earning and growing for you?
Brad can't think of a scenario where he would need thousands of dollars in cash in a hurry. Even if the unthinkable were to happen, he could pay with a credit card or a check. Worst case scenario is that he would need to access money by selling funds in an investment account and he would have it two to three days later.
For individuals just starting out and moving away from living paycheck to paycheck, having $1,000 available in cash as a crisis fund makes a lot of sense.
Brad keeps a couple thousand dollars extra in his checking account just so that he never needs to worry. There is an opportunity cost, but he finds it worth the peace of mind.
Jonathan tries to keep as little in cash around as possible. He has one or two months' worth of expenses in cash. Because he knows his monthly expenses, when he gets paid, he's able to save first, get it invested, and live off the remainder.
Interest rates on bank accounts are so low that there's no incentive to keep it there. Inflation alone erodes the value of money by an average of 3% per year. Is there a way to hedge against inflation while still meeting a need for liquidity?
Beginners may need to keep their money sitting in a savings account to feel comfortable. Once you get to the point where you can put money away and realize you aren't going to touch it for 30-50 years no matter how the market fluctuates, start investing.
March 2020 was without a doubt, a black swan event. Was an emergency fund a factor for you? Did you think about its value more at that time than previously?
Brad certainly felt better knowing he could rely on the cash from his net worth if it was needed.
Events of the last year had Jonathan thinking more about his net worth acting as a store of value. In a changing landscape, he wants to use the assets at his disposal to make sure he is more valuable.
He doesn't see cash as a great store of value. Due to inflation, cash is depreciating. When it is invested in the market, it produces value and increases with inflation.
As a store of value, bonds can provide stability, a regular income, and a negative correlation.
Cryptocurrencies, such as Bitcoin, are another store of value, although due to its volatility, it feels very speculative.
Precious metals, like gold and silver, are yet another store of value that can be owned physically or as paper assets through ETFs. However, with precious metal ETFs, not all are structured where every share is backed with the precious metal.
For Jonathan, the ideal store of value is a conservative emergency fund that beats inflation and if the worst happens, there's an upshot for him where he hasn't lost his store of value, and finally that it has liquidity.
A margin loan from M1 Finance gives Jonathan access to a very low-interest loan with stability, liquidity, and plenty of upshot.
Brad's ideal store of value is a business that is producing some type of income, like a diversified rental real estate portfolio.
For your emergency fund, you want to preserve its value, but its store of value all comes down to what you are comfortable with. It's worth analyzing the role of your emergency fund at its particular point on your path to financial independence.

Resources Mentioned In Today's Conversation

MDSave.com
GoodRX.com
ChooseFI Episode 291 If I Could Turn Back Time
ChooseFI Episode 066 The Emergency Fund…Is it a Bad Idea? with Big Ern
ChooseFI Episode 194 The Role of Bonds in a Portfolio
The Infinite Game by Simon Sinek
ChooseFI Episode 115R How to Get Out of Debt
Get started on your journey to financial independence at ChooseFI.com/start.

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294 | From Corporate Muzzle to Invested Development | Amanda Holden The Dumpster Doggy Feb 08, 2021

Amanda Holden's approach to educating others includes laughter and shenanigans to democratize information and get it to stick.
Amanda worked in corporate America at an investment management firm, but helping rich men get richer wasn't her calling. She hated the job and decided to establish a set of rules that we allow her to quit in six months and go travel.
She chose to supplement her bare-bones spending by living off the excess of others. That including asking for leftover uneaten lunches which earned her the nickname, Dumpster Dog.
Pulling burritos out of the trash and drastically cutting her spending worked. Amanda's savings enabled her to leave the job she hated and travel for a year.
Dumpster Doggy has now become her identity, showing others how they can make it work even if they don't have a lot.
Being privileged enough to live in one of the wealthiest countries in the world also means that we take it for granted and are surrounded by vast amounts of waste. Are we throwing so much away that we are sabotaging our chance to get what we really want?
While each day she felt like she was trying just keep putting one foot in front of the other, at the time, she didn't think of it the changes she was making to leave a toxic work environment as a metamorphosis.
She hated the job so much that she felt like the only option was to quit and start over from zero. Hating it that much allowed her to take a risk on doing something that aligned better with who she wanted to be and what she wanted to do.
Her advice to anyone who doesn't dislike what they are doing quite as much as she did is to start saving and doing what they want to do on the side. Then assess once there is momentum to decide if you want to take it further.
Amanda acknowledges that she was privileged with a level of comfort and security when taking her leap as she had a family to fall back on for help if needed.
She isn't trying to sell entrepreneurship to everyone. It makes sense for some people but there are aspects of it that she doesn't love. It won't be the right fit for everybody.
What worked for Amanda was starting by giving her service away for free and collecting as much feedback as she could. While she has the blog, For her business, she started out cold calling on sororities. She asked to come in to teach them about investing and then collecting their feedback.
After building this foundation, she began to explore what the sticking points were for people and how she could begin to charge for her services.
Amanda says it's all about connections, so utilize your network to get your information into the hands of whoever can help get you in the door.
Amanda wants women to be in the conversation because when they have a seat at the table, they have wealth and the world is a better place.
To reach women and make the material accessible, Amanda avoids jargon and uses comedy as an educational tool. For instance, she leads with equating a 401K or a Roth IRA with a Caboodle, which is just a fancy place for you to store your treasures.
Amanda also uses a shame-free approach to money. Women are constantly feeling shamed about money, whether it's for making too much or too little, or for how they choose to spend it. She trusts you to be grown up enough to make spending decisions for yourself.
Everyone deserves to be able to spend a little bit of money on themselves and have some fun. Living paycheck to paycheck might be a problem of spending too much or it might be not earning enough. Saving and investing can be automated if spending is the problem, while a conversation about earning might be warranted if income is the problem.
In addition to removing the shame associated with money, Amanda says you don't have to be perfect. She uses her own mistake stories to help bring people in.
While building her business, Amanda worked as a bartender and freelance writer. She still freelances for the regular income but she also puts on personal events that are more fun than the corporate speaking events where she feels muzzled.
Amanda was teaching investing courses on Zoom well before Zoom became a thing. She's been able to scale the course by putting it on video.
The first thing she tells people is that investing is absolutely in their capacity and that if you take a set it and forget it approach, you'll probably do better than the investing experts.
Course information can be found on her Instagram page. If interested in contacting her for a speaking event, reach out to her on Instagram or by email.

Website: Invested Development
Website: The Dumpster Dog Blog
Instagram: Dumpster.doggy
Email: AmandaHoldenInvesting@gmail.com

Resources Mentioned In Today's Conversation

Start your 60-day free trial with LinkedIn Sales Navigator today.
Switch to Mint Mobile and save.
Get started on your own journey to financial independence at ChooseFI.com/start.

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293 | Gamestop Squeezed to the Max | Brian Feroldi Feb 05, 2021

Wondering what happened with GameStop and confused about what a short squeeze is? The complexity of this kind of trading is far from the simple strategy of buy and hold investing.
Even for those who have no plans to jump on bandwagon, it's good to understand exactly what is going on. We can learn what's happening, how it works, and move intelligently forward.
In an effort to understand systems, Brad has been having a maddening healthcare experience. He needs a CT scan but hasn't been able to find out what the base cost will be. The negotiated cost won't be known until after the procedure so Brad won't know how much it will cost him until then.
At a macro level, the stock market has had a fairly smooth move up and to the right for the past 10 years or so. For investors, it's been somewhat predictable, at least until this last week when GameStop stock began to skyrocket.
There are aspects of the stock market the average investor doesn't see. Hedge funds are participating with huge amounts of money in layers that are essentially hidden to the masses, until it wasn't, and they got caught unaware.
Brian Feroldi says the last few weeks have been some of the weirdest in the investing world that he's ever seen. The story has infiltrated mainstream culture and he's been getting questions from all over about what is going on. Even his mom sent a text asking about GameStop.
First, GameStop is a physical seller of video games. As video games became popular, GameStop was a great investment, however, once people began downloading video games, its business prospects declined. As a result, GameStop stock prices have also been declining for many years and it is believed they will cease to exist as a business in a couple of years.
Investors or many managers can make money when a stock declines in what's called shorting the stock. A short sale stock is the opposite of becoming a buy and hold investor in a stock.
A short sale works by going to your broker predicting a stock's decline and state you want to short that stock at a particular price. The broker goes and borrows shares of the stock from another investor for the price you stated and you collect the proceeds from the sale. Your goal is to then buy those shares back at a later date for a lower price and return them to the original investor.
The original owner of the stock makes money by receiving a small fee from the person borrowing their stock, almost like being charged an interest rate. The more demand there is to short a stock, the higher the fees.
There is no set timeframe when shorting a stock. I can be shorted indefinitely. However, if the owner of the stock wants to sell it, the broker who borrowed the stock would have to go and find another short for you to borrow from. If they cannot find other shares to short, the transaction would need to be undone on the short side at current market rates.
Most of us take long positions on stocks, believing the stock is going to increase in value. Allowing someone else to borrow your stock in a short position is another way to make money on owning it.
Some brokers like Brian's are interactive and sent him an email asking if he would be interested in allowing his stock to be borrowed or shorted. since he's interested in holding the stocks for a long period of time, he said yes.
Shorting a stock does put downward pressure on the share price. Individual investors don't have much influence, but a hedge fund taking a significant position to short a stock can drive prices down.
The market price of a stock at any given time is simultaneously the lowest price buyers are willing to pay and the highest price sellers are willing to sell at.
Shorts are happening all of the time, so how did GameStop land on the radar of the subreddit group, Wallstreetbets? In the case of GameStop, there were more shares sold short than there were publicly traded, which is something that very rarely happens.
Wallstreetbets took the opposite position, stating that GameStop's fundamentals were different from companies like Blockbuster, and its stock price was actually undervalued.
An article by Andrew Left from Citron Research predicting GameStop stock going down hard caught the attention of Wallstreetbets. Its members rallied together to buy GameStop stock.
It was then that GameStop stock began to rise. Someone with a short position on a stock does not want to see the price rise. Rising GameStop prices kicked off what's called a short squeeze.
There's no logical argument for saying that GameStop stock was worth $4 in December and $400 just three weeks later. What shifted was who was controlling the mechanics of the system.
The members of Wallstreetbets understood that due to the large number of short positions on GameStop, if enough of them got together to buy it, they could force those in short positions to buy back into it.
GameStop was priced for bankruptcy. While there's no limit to how high a stock can go, the lowest it can go is $0. In that case, the short seller earns a 100% return on their money. However, when a stock rises, being short on a stock can cost significantly more than you put into the stock.
To get out of a short means you have to buy the stock. The buying demand placed on the stock increases the share price. When all of the short sellers saw GameStop's stock price rise, they had to try and get out by undoing the trade by buying the stock themselves, putting more upward pressure on the stock price and on other short-sellers who wanted to undo the trade. That's why GameStop stock prices rose so dramatically in such a short period of time.
Short squeezes are not a new phenomenon. In the past, other heavily shorted companies have come out with good news and saw their stock prices skyrocket. What makes the GameStop situation unique is that it resulted from a coordinated group of buyers banded together to make it happen.
In this short squeeze, there was additional controversy surrounding Robinhood, the zero-commission broker. Because Robinhood doesn't make money on trades, they make money by selling your trading information to high-frequency traders who can make money with micro-transactions. It's those traders who are the real customers of Robinhood.
When GameStop and other heavily shorted stock prices began to rise, Robinhood's hedge fund customers began to lose a lot of money so Robinhood decided to stop trading with these stocks to give the hedge funds time to undo their trades. Meanwhile, Robinhood's small investors were not allowed to buy and sell.
Robinhood aggregates and sells client trade information to the high-frequency traders who can buy the stocks then turn around and sell it to the Robinhood client seconds later for a little extra money.
Robinhood's business model probably works out for a buy and hold investor at the micro-level, but the GameStop situation highlights what can go wrong when each other's incentives are not aligned.
What this demonstrates is that the game is stacked against an individual investor trying to enter and exit the markets with precision. But for the buy and hold investor, this has been mostly noise.
To summarize what happened this week, Brian quoted Morgan Housel who recently tweeted, “The GameStop thing is a reminder that investing is not the study of finance. It's the study of how people behave with money. And sometimes those behaviors are incredible.“
Brian says there has been a huge rise in demand for Environmental, Social, and Government (ESG) funds. The exact definition of what ESG investing means varies from person to person so read through the fund to ensure it meets your definition. There are a lot of ESG funds to choose from now and fees have gone down, especially since Vanguard now has an ESG fund.
If you listened to Monday's episode on M1 Finance, M1 does not sell mutual funds, they sell ETFs. The ETF version of VTSAX is VTI.

Resources Mentioned In Today's Conversation

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292 | The Complexity in Simplicity at M1 | Brian Barnes Feb 01, 2021

M1 Finance transformed Jonathan's ideas about how simple complexity could be and has quickly become his favorite investing platform, especially for taxable accounts.
Brian Barnes investing story begins at the age of 10 when his parents exposed him to trading stock in a brokerage account with Ameritrade. He was captivated by the notion of investing and the intellectual puzzle of how a company was doing.
His parents laid a general foundation of financial independence and security. Once basics were covered, they placed value on putting money someplace where it could accrue value, compound, and become ownership is something valuable.
Getting started at the tail end of the Dot Com bust, it was a great time to be buying when prices were low and companies were valued cheaply.
Brian says there is a big difference between traders and investors. Traders speculate on price and try to make money on short-term movements. Investors buy ownership in companies, asset classes, or industries to accrue value over long periods of time.
When you aren't making frequent investment decisions, it becomes more about viewing your portfolio in totality and making a decision on what to do with the extra money you have leftover from your paycheck.
In the trading world, you have to go in and make the same decisions to buy the same securities over and over again, but with M1, you can make the decision once and let the software automate the process.
With day trading, you can't just be right once, you need to be right over and over and over again, constantly timing the market perfectly. It's difficult to predict costs even when commissions are free and it's tax-inefficient.
With an investing mindset, you want to own over long periods to accrue value and generate cash flows.
At the age of 25, Brian realized investing platforms hadn't changed in 15 years. He looked at consumer applications work that sought to make things simpler, more intuitive, and automated wondering why there hadn't been progress in the financial services world.
He thought it would be nice if he could tell a software platform the portfolio he wanted to own, and anytime he had money, he could throw it into the platform and it just went to work. He wanted to deploy all of the money by purchasing fractional shares so there wasn't any cash drag. And finally, incredibly low fees with no commissions.
As M1 has expanded, it's grown from his “wouldn't it be nice” idea to other areas like borrowing and spending, allowing users to have one financial institution instead of needing to use multiple apps.
M1's philosophy is that a great product allows you to do complex things simply. What they allow customers to do is determine what share of their portfolio they want in any given investment and then the software handles the complex and mundane administrative work.
It used to be that you had to buy lots of 100 shares. It was a big step forward to be able to purchase odd lots of shares.
Being able to purchase fractional shares with M1 is transformational. They do this by purchasing in whole shares and adding the leftover fractions to their own inventory account. It makes it easier for the customer to deploy more money consistently and have a diversified portfolio.
M1 is a commission-free platform. Traditional brokerages made 10-35% of their money from commissions. Through technology development, the cost to trade is only an electronic message. Though not free, on a per-transaction basis, it can be no-cost to the user.
M1 can make money monetizing the assets held on their platform so by being efficient, they don't need to charge transaction fees, making it a win-win arrangement.
M1 is not good for day traders. It's suited for systematic investing in the portfolio of your choosing. Their trade windows occur twice a day and aggregate all orders on behalf of their customers once in the morning and once in the afternoon.
While you can invest money every day through M1, a good financial habit to establish is to invest the extra cash you have leftover from your paycheck every two weeks. M1 allows for that to be automated.
Portfolio management in M1 orients itself around a pie concept. At the highest level, the pie is 100% of your portfolio. You can then begin to divide up the pie into slices based on what percentage of your portfolio you want in specific investments. The slices can then become their own pies. It allows for a diversified portfolio, controlling risk exposure, without the risk of becoming overconcentrated.
In M1 you can rebalance your portfolio in the next trading window with the one-click button although that method is tax-inefficient. Instead, additional contributions will automatically work to rebalance your portfolio with your pies without causing taxable events.
With investing, taxes are going to be your biggest fees. Minimizing taxes controls costs and maximizes long-term success. With M1's dynamic rebalancing, it tries to minimize the sale of securities with tax consequences to push taxes out as far as possible and let your money have more time to compound.
Brian is a fan of Vanguard and what they have to prioritize the individual investor. The difference between M1 and Vanguard is that you can buy Vanguard ETFs with M1, but Vanguard has a mediocre brokerage to buy other securities.
Compared to Vanguard, M1 offers a more robust and comprehensive personal financial platform, such as a line of credit against your securities with rates as low as 2%. M1 also has a high-yield checking account earning 1% plus 1% on debit card purchases. The smart transfer tool allows you to set parameters and have money automatically move in and out of accounts accordingly.
M1 wants to be a personal finance platform where you can manage your money holistically.
They just launched custodial accounts which are available with the M1 Plus membership for $125 a year which has additional benefits across Invest, Borrow, and Spend. M1 is offering a promotion to get one year of M1 Plus for free.
In the last few weeks, ChooseFI CEO Ed has been migrating assets from other platforms to M1. While Brad already has an M1 account, this conversation with Brian has helped him realize what he has been missing out on.
Jonathan wanted to note that with the smart transfer rules, the decumulation phase can now be as easy as the accumulation phase.
Previously, Jonathan was going to get a HELOC. When he stumbled upon M1 Borrow, he realized that it was a margin loan much in the same way that a HELOC is a loan against your home. Borrow can be a liquidity tool, giving you access to 30% of your investments as an emergency fund. It gives you an incentive to build an emergency fund and keep it invested.
Brian says you should be able to have a line of credit against a liquid investment portfolio at really low-interest rates.
The goal for M1 Finance as the finance super app is for people to come to M1 to manage their finances, not a component of their money, as well as provide the same level of capability that a high-price team optimizing every aspect of your finances could in a self-serve product.
You won't find VTSAX on M1. VTSAX is a mutual fund and M1 does not have mutual funds. What it does have are ETFs which are identical versions of mutual funds. VTI is the ETF version of VTSAX on the M1 platform. M1 also has Paul Merriman pies for anyone interested in his ultimate buy and hold portfolio.
For those in the decumulation phase, M1 has IRAs, taxable accounts, and 401Ks that may be rollover into IRAs which can be set up as smart accounts using dynamic rebalancing and withdraw money in the most tax-efficient manner possible.

Resources Mentioned In Today's Conversation

M1 Finance-Completely Free Automated Investing!

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291 | If I Could Turn Back Time Jan 29, 2021

After four years of working on the ChooseFI podcast, Brad and Jonathan want to share their lessons learned, the list of things they might do differently, and highlight a few episodes to re-listen to.
Brad is back in the studio after missing out on Episode 290 with Paul Merriman. He's doing fine and appreciates everyone's concern.
With Paul Merriman's Ultimate Buy and Hold Portfolio strategy, the thesis is that diversity is great, but own equal amounts of all asset classes versus a cap-weighted index fund to capture the growth potential of small companies. Unfortunately, for the last 12 years, the majority of growth has come from large companies.
Brad says Paul's book reads like a FI manual with a high-level overview of small steps that could be million-dollar decisions.
The decisions are not little. As discussed in Brad's The FI Weekly email this week, the Rule of 72 states how long it will take you money to double at a given rate of return. 72 divided by the rate of return is how many years before the money doubles. For example, 72 divided by 8% equals 9 years to double your money.
The impact of that last double can be worth millions, that's why getting started early is critical. If your new and haven't already, today is the day to start.
Jonathan agrees Paul's book is a great FI primer and was surprised by how much he enjoyed reading it. He says it would make a great gift.
ChooseFI often talks about the aggregation of marginal gains. It can be quantified as each half a percent improvement means we can make an extra million dollars. Come up with 10 and that's an extra $10 million over your investing lifetime. If you can't do all 10, pick three or four and implement early, aggressively, and consistently.
If they could turn back time and look at how their own understanding has grown and developed over the last four years, what would the conversation look like from both micro and macro views?
Starting with investing, in the beginning, the most powerful concept inspired by JL Collins was to avoid the fees, a sentiment echoed by Paul Merriman as well. Diversity and time in the market are also key.
You will lose approximately 40% of your total net worth when invested with a financial advisor at 1% in a mutual fund with a 1% expense ratio. The dramatic loss happens when your gross 8% market return is reduced to just 6% after fees.
In Episode 052 with Todd Tresidder, he highlighted that there are three asset classes you could invest in, paper, like the stock market, entrepreneurship, such as starting your own business, or real estate.
Inside of paper assets like the stock market, Todd says complexity can be valuable, but others like Big Ern and Rick Ferry say most people will do far betting sticking with something simple they understand.
It's important to talk about the things that will increase the likelihood of success then discuss nuance. While Brad craves simplicity, Jonathan enjoys learning more. There's no one right answer, only what works for you.
Jonathan always conflated individual stock purchases with day trading, but episodes with Brian Feroldi helped him realize they are not the same.
For Brad, individual stocks always seemed like gambling. While he doesn't advocate having a huge percentage of your net worth in individual stocks, it's no longer the 0% he would have advocated for years ago.
The software available through M1 Finance allows Jonathan to implement the complexity associated with some of these strategies and maintain them simply.
As for investing in entrepreneurship, it has become something Jonathan loves doing. It's an investment he has total control over, as discussed in episodes with Alan Donegan after he pointed out entrepreneurship was left off the Pillars of FI list.
After a disastrous real estate failure in his 20s, Brad learned real estate investing can be a significant part of his portfolio if you are investing and not merely speculating. He now owns two single-family rental properties which have been successful so far.
When you decide to start adding complexity, the price that's paid is usually time.
Jonathan believes we are all stuck in a system, but the FI community is working to break out of the system in the best possible way to bring control back over their lives.
Following the path to FI by saving money gives you options, power, and agency.
In every aspect of life, look at the rules of the game, survey the field, and make the best decision that's going to work for you.
Skills are more valuable than degrees. Upcoming in a future episode is Anita, who recently graduated from the Talent Stacker program. Coming from the hospitality industry, she had a four-year degree that left her with massive debt. After two to three months of training in a new industry for just a couple thousand dollars, she's now making multiples of what she was before.
The best way to learn something is to do it. If we can build a system around that, we can eliminate the need to wait four to eight years and go into debt. That's what Jonathan and Bradley Rice did with their course.
An 18-year-old who skips college, takes the course, and comes out making 60-80 thousand dollars a year can be Coast FI at age 25. with Coast FI where you have enough saved and invested and will never need to save another dollar again and have a net worth more than other at traditional retirement age.
M1 Finance's Plus feature normally costs $125/year, but right now you can get the first year for free. With M1 Plus you get a 1% yield on online checking and they will reduce your M1 borrow rate. Jonathan doesn't have a HELOC because a margin loan from his M1 investments is so powerful.
M1 introduced a new feature called a smart transfer. ChooseFI's CEO, Ed, has been testing it out. The current borrowing rate is 1.5% less for someone with M1 Plus.
Because Ed is retired, he hasn't been able to refinance his home at the historic low rates. Instead, he did hi sown refi with M1 Borrow.
Although Ed came to M1 to hack his mortgage, he decided to stay for the checking yield. Then he found the smart transfer tool.
Similar to Zapier, smart transfer allows you to create rules to manage your finances. With simple rules-based drag and drop programming, you can always have enough in your M1 Spend account to earn the most yield, pay all your bills, and be optimally invested in the market.

Resources Mentioned In Today's Conversation

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290 | We're Talking Millions | Paul Merriman Jan 25, 2021

Does your portfolio own enough of the companies that carry a lot of the growth over extended periods of time? When you buy index funds, you aren't as diversified as you think you are.
Cap weighted index funds mean you are buying a lot of the companies that are doing really well. But there are two asset classes Paul Merriman is a fan of that he thinks don't get enough attention, small cap and value.
Although many people claim to believe in a buy and hold strategy with investing, their behavior says otherwise. They like to buy when things are hot because they believe it's going to keep going up.
If you look back as far as 1928, a lot of the time the S&P 500 is walloping small cap value returns, yet at the end of this 92 year period, small cap value made 24 times the amount of money the S&P 500 did.
Even though there are long periods of underperformance, when small cap value does take off, there is outstanding performance. Then when it reverts back to the mean, there is a higher compound rate of return.
Owning a large cap fund means each holding in that portfolio, and how much of the portfolio it represents is based on how large that company is. The big companies represent 80-85% of the corporate public value in our economy.
However, history shows that the smaller companies and the value companies produce a better rate of return because they are more risky.
It doesn't have to be a lot to make a big difference. If you were put 10% in a small cap value fund, it would give you a legitimate shot at having 20-30% more money when you retire.
The top 20 companies probably make up 20-30% of the money you have invested. Investing in an S&P 500 or total stock market fund provides an illusion of diversity. As companies get to be bigger in size, it becomes increasingly more difficult to double or triple in size.
Companies are valued by the number of shares times the price in the market.
Large cap index fund companies average a market capitalization value from $50 billion to $150 billion.
Small cap companies are roughly 1/50th the size of the big companies with values averaging $2 billion. They are legitimate companies, but many of them will fail.
Since 1928, the S&P 500 or total stock market compound rate of return has averaged 10%. However, research has shown that only 4% of those public companies made virtually all of that 10%, while 96% of companies averaged just 3%.
As an aggregate, small companies are much more likely to double or triple in size.
Value companies can be seen as companies that are out of favor and years later, they may still be out of favor. Academics don't advise buying value companies one at a time.
People come into value companies to make them more meaningful, profitable, and efficient turning those companies around.
The problem with great companies with a great future is that when something happens to pop the ballon, those companies can fall 25% in a day, similar to what happened with the Dot-com bubble in 2000.
Telsa, for instance, is a car company on the verge of bankruptcy several years ago and now it's up 400% even though it is barely turning a profit. With a current share price of $800, it's going to take a lot to double your money, yet people still believe in Tesla.
Paul wants to help people figure out how to invest in an unemotional way and don't get caught up believing in something that isn't likely to happen.
Last year, growth companies were up 35-40%, however, looking back at 90 years of evidence, growth produced a lower rate of return than value by 2% a year.
Paul's latest book, We're Talking Millions!, is all about the extra half of 1%. For every half of 1% you can make on your portfolio over a lifetime, you add a million dollars. Finding more of those half of 1% and adding them up is a lot sexier than finding the hottest thing in the market.
In his book, Paul lays out 12 simple ways to capture those half 1% that the market is ignoring.
Paul's been hearing complaints for years that his work has been too complex. It's was something his firm did for his clients, but most individuals do not want to make it that complex.
Someone in their twenties, investing just $5,000 a year for 40 years, can use these strategies to make millions over an investing lifetime.
It's not all because you took more risk, it's also how you protect your money from others getting their hands on it, like money managers.
Choosing to save can be a million decision, and choosing to save early can be another million.
In one mind-blowing statistic, Paul says 25% of millennials will not put money in the stock market.
The ultimate buy and hold portfolio might be difficult to replicate inside a 401K. To make things more simplified, Chris Pedersen developed a system to implement the philosophy with roughly 98% of the benefits.
The goal is to keep it as simple as possible so that anyone can do it and won't need to manage it other than for a few minutes a year.
One way to buy a target date fund. But because they don't have enough value or small cap companies represented, have 90% of contributions go to the target date fund and 10% to a small cap value fund. The target date fund is broadly diversified and automatically adjusts to become more conservative as you age.
Chris said the problem is young people should have more invested in small cap value and came up with a formula for calculating just how much, which is 1.5 times your age into a target fund and the remainder in small cap value.
For example, a 30-year-old should multiply 30 years x 1.5 to get 45% in a target date fund and 55% in small cap value.
Paul and Chris encourage continuing to hold 10% in small cap value at the age of 60 and beyond which is good during the 30 or more years in retirement.
Not all target date funds are created equal. Look for one that is low cost and contains total stock market funds.
Jonathan doesn't like having bonds in his portfolio and notes that target date funds have bonds in them. Paul agrees and said he spoke with John Bogle about it once. He was told that bonds are defensive and do good when the rest of the portfolio is down 50%.
You can reduce your exposure to bonds in target date funds by adding equities to your portfolio.
With target date funds, the year indicates how aggressive it is.
As with a traditional portfolio, rebalancing your portfolio is a part of the small cap value strategy. If you want to be true to your strategy, you need to sell some winners and buy some of the losers.
Jonathan has modeled one of the Ultimate Buy and Hold Portfolio pies Paul has on his website in his taxable brokerage account with M1.
Paul says it's never been easier or efficient to invest. Even if the market does return as much as in the past, you can probably make the same return because it used to cost so much to do before.
They are coming out with all new recommendations for best-in-class ETFs. Paul has all his buy and hold funds in DFA dimensional funds and now anyone will be able to buy DFA funds through DFA or Avantis without paying a commission. Since it's an ETF, you can buy commission-free with M1.
Pauls' book is free for teachers and students, just email Paul at Paul@paulmerriman.com to get the PDF by email. The book is also available on Amazon. If you can't afford the $14.95 price tag, email Paul for the PDF.

Resources Mentioned In Today's Conversation

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289 | The Roth 401K and Meal Planning Made Easy Jan 22, 2021

For almost 12 months, we've all been trying to do the best that we can. As frequently discussed on the show, we try to do things slightly different, optimize in the ways that we can, and make the best of the situation.
Jonathan's wife Dani has been coming up with all kinds of creative little activities for the kids. Even Jonathan was recruited for a rock painting project.
Brad has been listening to a new podcast, Ordinary Sherpa, created by Heidi, a member of Jonathan's Talent Stacker podcast. The podcast is about creating little adventures in life with your family.
At the same time, in the mastermind group Brad takes part in, he was inspired by a discussion related to dads really showing up to be a part of their kids' lives.
The podcast theme and mastermind group discussion converged for Brad when his daughter, Molly, asked him to go explore the creek with her. Rather than playing along for a minimally acceptable amount of time, Brad showed up like he really wanted to be there and they had hours of fun exploring together.
What if you started to show up for everything in your life with the attitude that you really wanted to be there?
It's difficult to be focused on growth in all areas of your life at the same time. There are different seasons when you will be able to lean into one over another but it's good to figure out a baseline you're comfortable with and recognize when it's time to rebalance.
Since Brad's financial life is on autopilot, it's not something he spends much time focusing on. However, sometimes things do backslide and he needs to return a little focus to it. Such as, he recently canceled two recurring charges for streaming services, not because their costs were going to have a significant impact, but because he was no longer getting value from them.
Relationships is an area Brad believes he could spend more time focusing on. If he were to ask himself, “Am I showing up as the best version of myself for my wife and kids every day?” his answer would be “no”.
Who should be leaning into and leveraging their Roth 401K? Sean Mullaney, The FI Tax Guy, says the Roth 401K works similar to a 401K except the funds going in are taxable today and come out later tax and penalty-free.
Those currently in a high tax bracket looking to retire early are probably better off contributing to a traditional 401K. But someone just out of college in a 10% federal tax bracket may benefit from paying 10% in taxes today rather than 20-30% later on. Even someone who may have substantial taxable income in retirement may benefit from a Roth 401K.
A Roth 401K can also be a hedge against future tax rates for anyone who prefers to lock in their tax rate today.
If your 401K plan offers it, you don't have to do all Roth 401K or traditional 401K. You can split the difference.
For example, a 60-year-old new retiree with a large 401K will be taxed on every dollar withdrawn. We don't know what future tax rates will be.
Roth 401K withdrawals don't work the same way as traditional 401K withdrawals. You can structure it in a way that you can recover tax-free contributions, From a Roth 401K, you may need to rollover into a Roth IRA.
For the early retirees who don't plan to retire at a super early age or anyone with artificially low income for a few years, the Roth 401K is a strategy to consider.
If you aren't 59 1/2 yet, Roth 401K withdrawals are subject to the cream in the coffee rule where 2/3 of the withdrawal is tax and penalty-free but 1/3 is subject to ordinary income tax and a penalty. This is different than a Roth IRA where contributions may be withdrawn at any age tax and penalty-free.
When you roll over a Roth 401K to a Roth IRA, the Roth 401K contributions go in as Roth IRA contributions, and earnings become Roth IRA earnings. You could then take out the full amount of contributions tax and penalty-free before touching the earnings.
If you aren't 59 1/2 and need to access your Roth 401 contributions, it makes sense to roll them over to a Roth IRA first.
If you have employer stock in your 401K, there may be net unrealized appreciation. You do not want to roll it over from a traditional 401K to a traditional IRA without considering a tax planning strategy. This requires assistance from a tax professional.
If you want to do a backdoor Roth IRA, rolling over 401K to a traditional IRA isn't a good idea.
The fees associated with 401K plans have gotten better over the last 10-15 years. The investment choices are better with lower fees. It may not make sense to do a rollover.
As a general rule, retirement accounts have required minimum distributions (RMDs) once you turn age 72. The exception is the Roth IRA. While RMDs from a Roth 401K are not taxable, you want to keep that money growing tax-free as long as possible for you and your heirs. If you're 72, Sean would recommend you roll your Roth 401K to a Roth IRA for that reason.
Generally, you need a separation of service to do rollovers from a Roth 401K to a Roth IRA. Look for your plan's Summary Plan Description (SPD) which details withdrawals.
401K plans are subject to the ERISA law, where creditors cannot access the funds, except for ex-spouses and the IRS. IRA creditor protection varies from state to state. Something to consider before a rollover.
Dani and the ChooseFI Foundation are using meal planning as a financial literacy tool. Always looking for ways to get children interested and thinking bout decision-making and personal finance, they have put together Meal Planning Made Easy.
The meal planning project helps kids put financial literacy concepts into a real-world contest. The goal is to make financial literacy concepts more than just habits but to have kids take ownership and have fun doing it.
In the 3rd through 5th-grade video series, Dani talks them through meal planning. They are tasked with going into a grocery store, either in-person or virtually, and planning all three meals for one day.
The meal planning project is adaptable to fit every socioeconomic setting.
The tasks grow as children develop. High school students may plan meals for an entire week, searching the pantry first, and finding recipes to help on the budgeting side of things, just like parents have to do.
Sign up for Meal Planning Made Easy at Choosefi.com/mealplan.

Resources Mentioned In Today's Conversation

The FI Tax Guy
Ordinary Sherpa
Do Inner Work
Roth 401K Withdrawals
ChooseFI Foundation
ChooseFI.com/mealplan
Get started on your own journey to financial independence at ChooseFI.com/start.

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288 | Mad Fientist Jan 18, 2021

Should you rush to reach FI? Or use it as a map in a lifelong pursuit to master your relationship with time, money, and happiness? Brandon, from the Mad Fientist, wishes he would have found more free time to work on other goals while on his journey to FI.
When Brandon was first on the show four years ago, he had just reached FI and discussed the psychological hurdles he had to overcome. What's changed for him since then, and with the benefit of hindsight, what would he do differently?
Brandon's dream as a child was to write music and put it out in the world. However, his musical tastes are not mainstream, so becoming a pop star was never one of his ambitions.
He did not want to just be a consumer, he wanted to be a creator and always felt that it was his job that was holding him back.
It wasn't until after reaching FI that he realized it wasn't was what holding him back at all. He had been spending his free time on things like television on travel instead of his music project.
His problem was psychological. As a math and science guy, he didn't believe he could do it. Trying meant the risk of failure, and if he failed, the dream would be gone. It took Brandon two years to come to grips with and get over that hurdle.
During his pursuit of financial independence, Brandon has tunnel vision, with all his time and effort devoted to making and saving more so that he could reach FI more quickly. The result was a decrease in his overall happiness.
He admits that he did it wrong. The whole point is to master the relationship between money, time, and happiness. Mastery is probably better to focus on over goals.
Goals delay your happiness because you are always looking to the future instead of enjoying the present or the journey.
Reaching FI for Brandon didn't have an impact on his life other than making him more confident that he could step away from his job.
Motivating yourself to do something is hard when you don't have any sort of external motivation to do it.
In 2017, Brandon wanted to do two things: get better at songwriting and get fit.
The personal trainer he was working with asked him how much he wanted to bench press or how much muscle mass he wanted to put on. Those were goals Brandon didn't care about. With his mastery mindset, he only wanted to get healthy and stay healthy.
In contrast to getting fit, his specific goal for songwriting was to write a song and share it with his brother. When he finished it, not only was it awful, but the whole process was awful and it caused him to quit pursuing any additional songwriting until he summoned up the courage again in 2019.
Pursuing mastery may be summed up by asking, “Am I better today than I was yesterday?” Continuing to answer yes is pursuing mastery.
Brandon found it to be true that doing something consistently changes who you are. He never felt like a musician until he was doing it for 25 hours a week.
He still feels like his triangle is skewed toward money at the expense of time and happiness so he has been trying to figure out how to use money to get more time or increase happiness.
For example, he wrote eight songs and wanted to get them to sound as great as possible, so he hired a Grammy award-winning sound mixing engineer to help mix his album. He was able to both learn and make a better final product.
He doesn't want to waste money but does want to figure out how to use it efficiently and maximize the triangle of money, time, and happiness.
There's a lot of unconscious spending in society that doesn't really bring happiness either. Getting on the path to FI helps you sort out the equation a bit more.
We're terrible at knowing what will make us happy. That's where experimenting comes in. Experiment with your spending and your activities. What still feels good a week later versus ended up being meaningless.
It's okay to spend money sometimes as long as you do it from a place of value. If you are in a deprivation zone, one thing that helped Brandon was to relax for two years with respect to his spending. If it was something he and his wife wanted to do, they did it. At the end of the year, although it felt like they had lived an extravagant life, they spend just $3,000 more than normal.
In the deprivation zone, you are testing the lower limits. You can test the upper limits and then hopefully find the sweet spot. It's difficult to find where the sweet spot is for you without testing the limits.
Once you have the bigs things taken care of, the little ones don't seem to matter. Brandon had already limited his large structural recurring expenses. What he had given himself latitude with were the everyday one-off decisions that in aggregate, turn out to barely move the needle of his finances.
Brad and his family have anchored themselves to a $2 per person per meal per day rule. It helps them to apply intentionality to their meal planning. He thinks it's better to try and optimize and then dial it back if gets to be a little too much than continue to go through life being unaware.
Brandon is an introvert, so announcing publicly that he is releasing his first album is a big deal.
Back when he wasn't making progress because he wasn't putting the time in, he talked his brother into going to a park and playing a show. The thought of doing it was scary, but he already knew what it was like not to it. He wanted to know what the world would be like if he did do it.
While playing in the park, a man slipped Brandon his email address. It turned out he source talent for a music festival in Scotland and asked if they wanted to play at it.
Brandon taking that chance in the park reminded Brad of a quote by Scott Young, “Your deepest moments of happiness don't come from doing easy things. They come from realizing your potential and overcoming your limiting beliefs about yourself”.
Both financial independence and the pursuit of financial independence allow you to begin building armor. Failure is good. You have to be bad at something before you are good at it.
FI definitely helped Brandon build his armor. He didn't have anyone to answer to or worry about stumbling across what he was doing.
He also uses an alter ego for his work in the financial space, as well as another for his music.
Something that Brand did to progress with his music was conduct an ultralearning experiment. He took three months where he blocked out all other activities competing for this attention to do the thing that he wanted to do, which was write songs.
He committed to devoting 25 hours a week and built spreadsheets of prioritized tasks. He says it is the only reason he succeeded. He focused on the hours and the effort and then by-product comes out of it.
For others just trying to get started learning, Brandon thinks copying what you love is a great place to start. Your unique set of influences is enough to make what you do unique.
The unique skills each of them possess is what lead to this very podcast. Brad being a CPA with a travel rewards website is what got him a guest spot on Brandon's podcast. Then Jonathan heard the podcast and discovered both Brad and he lived in Richmond, which lead him to first contact Brad.
Every good idea comes out of a bad idea, or an okay idea, or even a mediocre idea. You do not need to get it right the first time. The fact that you are willing to try gives you the opportunity to get feedback and iterate into something amazing.
Brandon's album is available for just $5! You can pre-order your copy at ChooseFI.com/album.

Resources Mentioned In Today's Conversation

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287 | The Examined Life Jan 15, 2021

Are you the kind of person who sets New Year's resolutions? Like many Americans, Jonathan used to set weight loss goals for the new year, but not this year. Instead, he and his accountability partner, JD Roth, spent the previous nine months working on it and began the year, at or very close to their goal weight.
Not having to work on big weight loss goals is allowing Jonathan to be aware and focus on testing smaller adjustments that will make him feel better and have more energy.
Brad once had an experience while on vacation that made him realize how his normal diet was causing him joint pain. He wasn't even aware he had joint pain until one day it was gone. It was only then that he understood he had a problem that needed to be worked on.
When you live an examined life, you don't have to accept the things that are reducing your capacity to function as normal.
Brad thought his morning smoothies were a healthy choice, but it turns out the negative impact was a sugar crash necessitating an afternoon nap. It wasn't something he noticed until he stopped the daily smoothie routine.
The examined life concept can be applied to your personal finance life as well. It's not as much a goal as it is a mastery of process.
Brad embraces James Clear's concept of setting up systems that work in his life versus setting goals. He has set up eight different things he wants to accomplish as a part of a system with checkpoints along the way.
In an attempt to develop two new habits, Brad is habit stacking. With habit stacking, you take one habit you have and combine it with another you want to create. Brad has combined his desire to become more fluent in Japanese with moving more during the day by taking walks around the neighborhood while listening to the Pimsleur language learning app. It's not perfect, but it's a system that is working for him.
Brad is also following the advice of Chris Guillebeau and conducting his own annual review. This annual review sets the big picture, the intentions, the purpose, and outcomes. It then breaks life down into different areas where concrete goals may be set, such as self, health, family, community, travel, and others.
While neither has large plots of land in suburban Richmond, VA, Jonathan and Brad have both contemplated starting some sort of micro garden.
Listener James wrote in to say that he's been able to cut down on his grocery bill by going a whole year eating only vegetables he's grown himself.
James says knowledge isn't needed. Just try growing things. You'll learn as you go. Also, grow what you are actually going to eat. Kale is great, but not if you won't eat it. And finally, squash is king as it produces pounds and pounds of food.
Start with a 4'x4′ or 6'x6′ plot of land and plant 2 summer squashes and 2 winter squashes two feet apart. Water the roots, not the leaves.
If you don't have a yard, get creative like a friend with a yard, a community garden, or a local farm.
In your own garden, build up your soil health with compost.
When you are genuinely interested in learning, finding mentors willing to help can be easy. Jonathan's brother, Andrew who edits the podcast, has been interested in sustainable homesteading. Through the ChooseFI Facebook groups, he has found a community to learn from and is getting free room and board in exchange for work.
You get so much power and understanding in your own life just by understanding the concepts of FI. You don't need to be at your FI number to achieve power and autonomy in your life. It starts the moment you decide to make small changes to make your life better.
Neither Jonathan nor Andrew have reached FI, yet for all intents and purposes, they are living a financially independent lifestyle.
The goal isn't to have the most money, it's to be post-money, which is beyond the point where money matters. What do you want your life to look like, and what do you need to pull that off?
Suzanne sent in a question about expense ratios. She didn't know where to look to find out how much she is paying across their various investments.
First, there may be a fee attached to the fund for it being executed the way it is, known as the expense ratio. Second, if access to the fund is through a financial manager, there could be an assets under management fee.
The impact these fees can have on your investments is enormous. They can cost an investor millions of dollars over a 40-year time frame.
Brad suggested Suzanne google the funds' names or ticker symbol and expense ratio, such as “VTSAX expense ratio”. The result should be just one or two clicks away.
To reduce costs, long-term investors should use a commission fee platform to purchase funds, such as M1 Finance when investing outside of your employer.

Resources Mentioned In Today's Conversation

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286 | I Like to Dabble Jan 11, 2021

Many industries we once believed were recession-proof have proven otherwise. What can we do to build multiple streams of income and the resilience needed so that we're not reliant on anyone else for financial security? Side hustles and passive income are key strategies.
Daniella worked for an IT company for four years when they laid her the weekend before her wedding. Luckily, she quickly found a remote job working as a contractor but was laid off from it as well.
The layoffs ruined Daniella's confidence and self-esteem. Before the first layoff, she was living paycheck to paycheck and carrying debt. Occasionally, she needed to sell things for gas money until the next paycheck arrived. It was a financial low.
Daniella still had the severance from her first job in an emergency fund and was encouraged to freelance to keep stable while looking for a new job.
Freelancing was something Daniella had some experience with and reached out to an old client.
The talent stack Daniella developed was not simply technical. She had a strong artistic and design background which was mostly self-taught.
She says when going for a job interview, be upfront about all of the experience you have. Think about it and write it all down so you don't leave anything out.
Not all jobs require the employee to be a world-class expert. Sometimes having a wide variety of experience and being able to synthesize different pieces of information is what employers need.
The freelancing came out of panic. In addition to the debt, she had not been aggressively investing for retirement and believed the only way to go forward was a job.
After finally landing a new job with a FinTech company, Daniella began reading about personal finance for her blog about the journey she and her wife were on to get their finances together.
Dabbling is something Daniella has done since high school but it was never something she believed could be used to build wealth. Reading the stories of others changed her mind. The future became clear on what they had to do versus what they wanted to do.
While her original side hustles only fueled her spending behaviors, they eventually morphed into doing fun things. Her wife is an expert in reselling guitars, and in addition to freelancing, Daniella also did thrift store flips, repaired items for resale, and sold her own paintings of live concert events.
Daniella is in a much different financial position now. They have one year's worth of an emergency fund saved up, and all of their debt is paid off. They still have their side hustles, and her blog makes a third of what she makes in her full-time job.
If she were to lose her job again, she would be able to reach out to the huge online network she's built over the last three and a half years.
Facebook, Instagram, Reddit, and Twitter and great for networking. Daniella started by searching for different hashtags on Twitter.
Jonathan loves Facebook groups. When there is something he wants to learn, he leans into Facebook groups to benefit his talent stack.
Daniella believes Twitter is especially good for freelance gigs, while Instagram is good for anything since people expect others to slide into their DMs and comments on that platform.
Since she can work remotely from anywhere and they have multiple side hustles, Daniella and her wife are working on a move from Missouri to Washington State.

Resources Mentioned In Today's Conversation

Give your child a headstart with their financial and nutritional well-being with Meal Planning for Kids.
Watch shows live and on-demand with Fubo TV.
Build a better real estate investment portfolio with Fundrise.
Get started on your own journey to financial independence today at ChooseFI.com/start.

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285 | Beginning of a New Era Jan 08, 2021

What You'll Get Out Of Today's Show

2021 kicks off the fifth year of the ChooseFI podcast. Despite being at different points in their own financial journeys, Brad and Jonathan have experienced the benefit of incremental growth with both their finances and self-improvement. While it may seem simple and even mediocre, they are living amazing lives.
You need to control what you can control, starting from wherever you are. If you can optimize at the margins, you can reclaim decades of your life.
It's not just the ChooseFI podcast trying to share this message and concepts. The entire community is working to share this message.
In a Facebook post from Jessica, she shares that her goal at the age of 19 was to save $5,000 so that she could feel stable. She began finally saving at the age of 26. By spending less and earning more, five years later, she hit the net worth milestone of $100,000.
The concepts ChooseFI presents are not new. The show brings information together to tell a story to motivate and encourage people to take action with it.
Don't just do what people tell you to do. Look at what they are doing. JL Collins' blog series, The Stock Series, started out as a way to document what he wanted to teach his daughter about investing. Warren Buffett plans ate leave 90% of his investments in a low-cost index fund.
What is impressive about index fund investing is that there is ample evidence that over the long-term, this simple plan outperforms other strategies.
Index funds, like total stock market index funds, are self-cleansing. Rather than trying to pick the winners or attempting to build your own index where you need to stay abreast of what's happening in the market, your ownership in companies performing poorly automatically decreases as a percentage with an index fund.
To illustrate this point, of the original companies making up the DOW in the early 1900s, none of them remain within it today. With an index fund, you end up buying the up and coming companies that are replacing those losing value without having to do any research.
It's an odd phenomenon that people do not like to buy stock when the market is down. There are drops of 10% just about every year, 30% every few years, and black swan events like 2020 are more common than we like to believe. Despite of the ups and downs, stay the course and keep investing.
US currency is backed by the confidence of the federal government. As much as a large percentage of the world also has confidence in our government, $100 today is not worth the same as it was a hundred years ago.
Not only has inflation eroded the value, but more money has been printed than 100 years ago. Whenever the government prints more money or injects a stimulus, our money is worth a little bit less.
What is the value of cryptocurrencies, like Bitcoin? They are speculative. You buy now and hope later someone else will pay more for it. Brad has sworn off speculative purchases after a horrible real estate investment years ago, but as a life-long learner, he has a remote interest in it.
Warren Buffett has described Bitcoin as “rat poison squared” because, like gold, it doesn't produce anything. Investing in it is speculative.
Moving money back and forth for 5 billion people in the world is both difficult and expensive. People without real access to the world economy can use Bitcoin to meet their needs.
There are thousands of different cryptocurrencies available and most of them may disappear at some point. Their value is volatile and utility limited. It's also subject to manipulation and is currently unregulated, but we'll keep hearing more about digital currencies.
The future is going to change, so Brad is always willing to learn.
Since it's the first episode of the new year, what can you do to make your life just a little bit better? Increase your contributions to your 401K by 1%. Look for investment options with the lowest fees and think about moving them over. Cut an expense you aren't getting value from. Max out your HSA account. Contribute to your 2021 IRAs and other retirement investment accounts. Use Trim to help you lower your recurring bills.
If you are looking for a new career, train for a new SalesForce position earning $65-80,000 a year with the course Jonathan and Bradley Rice created. The five-day SalesForce Challenge with Talent Stacker is free.

Resources Mentioned In Today's Conversation

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284 | JL Collins Returns Jan 04, 2021

When it comes to investing strategies, one of the most influential books available claims that if you keep it simple, you'll actually do better.
Here to talk about the philosophy behind his investment strategy is one ofChooseFI's most requested guests, JL Collins, author of The Simple Path to Wealth, and popular blog series, The Stock Series.
The influence of JL Collins cannot be overstated. The content he produced changed the trajectory of Brad's life and made him feel comfortable investing.
In 2011, JL's daughter was in college but was turned off of all things financial after he pushed too hard. Because he wanted her to know how to invest and handle money, he decided that he needed to write it down for when she was ready.
It was suggested that he archive the advice in a blog and share with friends and family. Much to his surprise, strangers began to find it and he quickly had an international audience.
The book came out of the growth of his blog. Always having the ambition to write a book, The Simple Path to Wealth became a more organized and concise compilation of his blog articles. Four years later, 2020 has been its best selling year and the success has greatly exceeded expectations.
Readers have responded positively to the authenticity of his writing, which he believes is because he was writing for his daughter. Now that she is a young adult, she's been receptive to the information and is now on board with the strategy presented.
For Brad, investing always seemed like something that required thousands of hours of understanding and special insight until he began reading The Stock Series on JL's website. It gave him hope that he had a chance at long-term success for wealth that would last for many decades.
JL acknowledges the method in the book is the last and best method he came to after going through other iterations involving picking stocks and actively managed funds. The other methods work, but they are harder and a lot less powerful than a low-cost index fund.
JL says this method isn't just for beginners, it's the best way to invest for everybody. The most powerful way to invest is the simplest and the easiest.
He realized that not everyone wants to think about investing the way he like thinking about it. Most people know it's important, but have more important things they want to do with their lives. His approach allows them to set it and forget it.
The investing world is complex by design because the more difficult it is to understand, the more Wall Street can charge in fees.
Jack Bogle, the founder of Vanguard, was the first one to invent index funds and talk about index fund investing. Because outperforming the market as a whole is extraordinarily difficult, only 20% of fund managers in any one year can do it. After 30 years, the percentage of fund managers that can do it is less than 1%.
Even Warren Buffet wrote in his 2013 Berkshire Hathaway shareholder letter that he would advise the trustee of his estate to invest 10% in government bonds and 90% in a very low-cost S&P 500 index fund.
A mutual fund, or similarly, an Exchange Traded Fund (ETF), takes money from a lot of investors and lumps it together to invest it in something.
The S&P 500 index invests in the 500 largest US companies that make up the S&P index, while an actively managed mutual fund may focus on a different parameter, such as energy or technology.
An actively managed fund attempts to pick stocks that over time will outperform the index which is an expensive route and reflected in what the investor pays for the fund, called the expense ratio.
Every fund has an expense ratio, but what matters is how high it is. Because index funds don't have those expensive fund managers, the fees are very low. JL's most recommended Vanguard fund, VTSAX, has a 0.04% expense ratio. Actively managed funds average 1%.
The impact 1% has compounded over time is dramatic. On a $1M portfolio, you may be withdrawing 4%, or $40,000, each year, while 1%, or $10,000, goes into the pockets of those managing your portfolio. That's money not going to you or working for you by growing over time.
In an article Brad wrote several years ago, he looked at the impact fees had on an investment portfolio. With a 1% expense ratio and/or a 1% fee for assets under management, the fees over a 40-year period cost millions of dollars.
Owning index funds means you own all of the companies within that index, both the winners and the losers. VTSAX is Vanguard's total stock market index fund which invests in virtually every publicly-traded US company.
There is very little difference between VTSAX and the S&P 500 index fund since VTSAX is capweighted, meaning it owns more of the largest companies. Only 15-20% are small or mid-cap companies.
JL loves index funds because they are self-cleansing, meaning that you benefit from the winners while the losers drift away. The worst you can lose is 100% on a company, but you can gain 200% or even 1000% with the winners. Tesla is a great example of the upside.
An S&P 500 index or total stock market index fund is essentially the same regardless of which brokerage firm it is purchased from. JL prefers Vanguard because it is structured where its interests are identical with the investors. The investors own the Vanguard funds which helps to continually drive down costs.
The impact of changing from a fund with a 0.04% fee to 0.02% or even 0% isn't tremendous. JL prefers to stick with a company like Vanguard that favors the investor over the owner.
Another thing Vanguard is trying to do is make investing more accessible. They have lowered the minimum investment for VTSAX from $10,000 to $3,000. Those without an initial $3,000 to invest can opt for VTI, the Exchange Traded Fund version of VTSAX.
VTI is primarily a trading vehicle that any amount of money may be invested in. Like a stock, buy and sell orders are executed immediately, while index funds prices are set at the close of the business day.
Traditionally, investors have needed to purchase whole shares of ETFs. Companies like M1 Finance have made it possible to buy fractional shares.
It would be wonderful if we could time the market, but it's more important to have time in the market. The best way to lose money is to try and dance in and out of the market. Trying to time the market does not work.
When the market began to drop during the beginning of the COVID pandemic, JL held strong in his conviction that no one knew what the market was going to do. The important thing to do is to stay the course.
You have to expect market drops during your investing lifetime. JL says no one should follow his advice unless they are absolutely clear that they will not sell when the market drops. Selling is not an option. Market drops are temporary.
After Black Monday in October 1987, JL, despite knowing better, lost his resolve and sold near the very bottom of the market. He didn't buy back in until the market had completely recovered. Now, market fluctuations don't bother him.
Roughly 20 companies make up 30% of your holdings in an S&P 500 index fund. Any company or sector that rises to the top means you'll own more of it. When those companies fade away, the individual who owned them in an index fund will fare better than an investor who owned them as a single stock.
The most powerful companies today will not be the most powerful companies decades from now. Of the original companies making up the DOW, not a single one remains in the DOW. With an index fund, you never have to worry about what's fading out or what's rising. You will always be there.

Resources Mentioned In Today's Conversation

ChooseFI Episode 019 The Stock Series Part 1 with JL Collins

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283 | End of Year Wins | Part 3 Jan 01, 2021

It's Part 3 of ChooseFI's end-of-year wins where we hear directly from our community members. During this live event, listeners shared the actions they've taken during the past year that have helped them to spend less, earn more, and enjoy the journey.
This year, the year-end-win episode took place in a three hour live Facebook and YouTube event featuring around 20 members of the community.
Are you building an amazing life or are you a cog stuck in a very depressing wheel? It could be either or it could be both. The community members featured in this end-of-year wins episode have had the wake-up call.
We can't control everything, but there probably are some things we can control that we haven't yet considered. Hopefully, these wins from the community will provide inspiration and imagination to find improvement with at least one thing.
Our first win comes from Sara, who teaches high school science. She began listening to the podcast in December of 2018 and after binge listening to half of the available episodes, she opened a Vanguard account with all of the money she had saved. This year, she put money into 457s, maxed out Roth accounts, and put some money in a 403b.
And finally, Sara also just made her last mortgage payment, paying it off in just 11 years. With the mortgage paid off, Sara is now debt-free.
A special shout out to MK who recently gave birth to a brand new tax-deduction, otherwise known as a baby girl. MK and her husband, Jason, hit FI in their late twenties, and in addition to working for ChooseFI, MK has written a handful of science fiction books and teaches others how to self-publish with her YouTube channel, Author Your Ambition.
The next end-of-year win comes from Whitney who fired her financial planner this year. While her financial planner had set Whitney and her husband up fairly well, they were finally ready to fly on their own. Now that she understood what she was doing, she was able to get out of some of the actively-managed funds and do some tax-loss harvesting.
After an unfortunate incident with a supervisor, Whitney was motivated to figure out how she could not work if she didn't want to. Previously, she had no extra time to figure things out, but being at home due to COVID allowed her to explore hobbies, take care of health issues, and do more activities with her son.
Although making even the 1% better changes aren't always easy, it is a positive feedback loop where it becomes easier and easier.
Whitney plans is to retire in the next couple of years.
Next is Carlos, who welcomed a new baby this year. His wife took some photography classes and after seeing that her photos were pretty good, set up a new business as a photographer.
Jonathan says he's noticed a pattern when trying to learn a new skill. The first is that it's something that interests you. Next is finding a community, getting some training, and finally doing it.
Although Carlos‘ wife had to hit pause with the business a few times during the pandemic, she's still managed to have success even in this challenging year.
Carlos started a blog this year. As an immigrant from Brazil, he had issues with the IRS and decided to share his experiences so that he could help prevent others from making some of the same mistakes. He's is writing the first article and will soon be launching Alien Moolah.
Citlali and Jose have spent the last year adapting and keeping good habits. They moved to California three years ago and needed to get a budget together and manage cash flow after encountering high rent prices.
They found ChooseFI early when just six episodes had been released. Living on a single income, they were open to the messages presented.
Since then, they have tried house hacking, Citlali earned a degree through Udacity, got a job working on autonomous vehicles, and they moved to Texas, which decreased their cost of living.
Jose says the aggregation of marginal gains has helped them to save. Meal prepping has cut their meal costs and allowed them more free time during the week for other things.
Because the pandemic has them driving less and they've built up a good emergency fund, they've reduced their auto insurance coverage and cut the cost in half.
They also frequently use the library for ebooks and more unusual things like museum passes.
Citlali‘s big win this year for a 50% salary increase following her performance review which is helping to increase their gap.
But Jose and Citlali are reaping the benefits of FI before reaching it. With family in Mexico that has been hit hard by the pandemic, they have been able to provide financial assistance to buy food and pay off medical debt.
Shannon's year has been one of adaptation. She works at a college where her responsibilities have increased and transitioned. As a result, her boss was able to negotiate approval for her position to be full-time. The increase in Shannon's gap allowed her to pay off her car loan.
Shannon also started a unique side hustle creating videos combining World of Warcraft and making cocktails, under the title TipsiGaming, which can be found on YouTube and Twitch.
With no debt and this year's salary increase, Shannon hopes to buy a home and house hack the payment.
Finding ChooseFI a little over a year ago, Shannon has one month in emergency savings and now she has seven months saved up.
Wrapping up the series are Rob and Joni who are preparing to hit the road for RV life. They discovered the FI community about two and a half years ago. Starting from essentially zero, their net worth is up to $250,000 and their investments are at $150,000.
They quickly got used to living in 200 square feet, enjoyed get rid of stuff, decluttering their life, and being able to quickly clean up their home.
They both work from home, making them location independent.
When they married in 2016, they followed a more traditional contribution of 10% into a 401K. Though they were debt-free when they found the FI community, they didn't start to crush the income side until about two years ago when Joni combined her skillsets, switched careers, and doubled her income.
Rob and Joni's expenses are fairly low. The RV is paid off but they bought some land to put it on. when on the road, their base expenses should be roughly $2,000 a month.
For more information on the free Five Day Challenge or to sign up for the newsletter, go to ChooseFI.com/start.
Next week JL Collins joins the podcast again to revisit the Stock Series concepts and share his perspective on some of the nuances discussed with other guests of the show.

Resources Mentioned In Today's Conversation

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282 | End of Year Wins | Part 2 Dec 28, 2020

It's Part 2 of ChooseFI's end-of-year wins where we hear directly from our community members. During this live event, listeners shared the actions they've taken during the past year that have helped them to spend less, earn more, and enjoy the journey.
This year, the year-end-win episode took place in a three hour live Facebook and YouTube event featuring around 20 members of the community.
After listening to the podcast for months or years, how did individual members of the community take in information and take action leading to success in a very challenging year? Success isn't just the nuts and bolts of money. Ultimately, it's a life optimization strategy.
In response to Brad sharing in an earlier episode that he was joining Alan Donegan in his burpee challenge, Christine wrote in to share that she was inspired to step up her run by throwing in burpees along the way even if she couldn't complete the pushups.
Being perfect isn't realistic. Challenge and struggling are important, as is trying to get to the point of mastery. You grow during times of discomfort and failure.
The first end-of-year win comes from Eric. Introduced to FI by his best friends over a year ago, Eric binged listened to the podcast. In January of 2020, Eric and his wife re-scripted their financial life.
Eric is an architect and started creating YouTube content as a side hustle on his channel 30X40 Design Workshop.
Re-scripting their financial life started with paying down all their debt, including mortgage, with the cash they had saved that wasn't doing very much for them and built a six-month emergency fund.
Having that headspace allowed them to take more risks during the year. They don't have a specific monthly budget, but as long as his wife keeps her job as a research scientist, they are good. Everything he makes is going toward FI, including a post-tax brokerage account and 529s.
The FI literacy they've picked up from the podcast has shown they are a lot closer to their FI number than they thought.
The friend who introduced Eric to FI was Jason, who also had end-of-year wins to share. Jason figured out early in his career that he didn't want to persist working for other people until retirement age.
Five years ago, Jason learned about the FIRE community and began to buckle down, working toward a strategy.
Jason says they've always been good savers and put salary increases and bonuses toward retirement savings. In 2019, he realized 2020 was the year they could hit FI. He actually achieved it in May 2019 and stayed at his job until June 2020 because he had some things he wanted to see through.
In June, they moved from a high-cost-of-living area to a more moderately priced location. He began blogging on his website, The Next Phase is Now, to help work through the tornado of feelings he was experiencing.
Before retiring, they lived on their FI budget for a full year to give them confidence. Currently, Jason is drawing from his cash reserves, which he moves from a Fidelity account to his checking account once a month like a paycheck.
Next up is a question from Rebecca, who wants to know how to calculate her FI number when both she and her husband have pensions. Jonathan says the difference between your monthly expenses and your pension is what your FI number will need to cover.
The book by Grumpus Maximus, The Golden Albatross: How to Determine if Your Pension is Worth It, as well as episodes 057 and 227 with Grumpus are good to check out if you have a pension.
The next listener sharing her wins is Sara. Sara sold her care and began investing in VTSAX this year after graduating in 2019.
As a new investor, the market fluctuations this year were intimidating, but after reading The Simple Path to Wealth, she felt like she was getting in during a low period.
Sara's only debt is $78,000 in student loans which she hopes to pay off by age 30. During this 0% interest period, she has deferred making payments and has saved $20,000. It's a safety net that she's trying to decide what to do with.
Her employer offers a .5% match up to 6% in her retirement plan. Sara has increased her contribution since deferring her student loan payments and is looking to roll over an account from a previous employer.
Sara is trying to keep her expenses low and estimates her savings rate to be 30-40%.
Listener Jake has made a lot of big moves this year, which means undoing all of the American dream ideas that had been drilled into him, like the fancy apartment, car, and clothes. They weren't making him happy.
After listening to the podcast, Jake took action and moved into a place that cost him half as much, traded in the fancy car for a used Prius he paid cash for, and slashed his spending.
Another big move Jake made was to refinance his private student loans with a 10% interest rate to 4%. He's putting every extra dollar toward student loans and will 100% debt-free by the end of January.
The Talent Stacker podcast has lit a fire under him and Jake's goal for the end of 2021 is to hit $100,000 net worth.
Being able to work remotely, Jake has moved back in with his parents and reduced his rent to zero. Bradsays he credits living with his parents after graduation as the springboard for everything that came after.
Zach says it's been a great year figuring out his why of FI and taking actionable steps. He thinks whether we realize it or not, we're all chasing time and health.
He wants to travel the world in business class and loves his 2006 Hyundai Sonata. For Zach, finding happiness wherever he is at is the FI goal. It's all about what you personally value.
His investments are set up to meet his passive income goal. At the beginning of COVID, Zach started two businesses. While a pandemic doesn't sound like a good time to start a business, Zach says any time of strife and change creates opportunity.
Next up is Kosta who says despite the tough year, his path to FI has accelerated and COVID hammered home the need to do it.
Three years ago, Kosta and his fiance thought they had made it with their lucrative careers. But when he learned about FI in 2018, he was hooked. They worked together as a team to pay down student loan debt and put a 20% downpayment on the house they bought at the beginning of this year.
Health issues that may take both of them out of work motivated them to ensure their later years were easier. And a by-product of FI, Kosta has lost 84 funds this year!

Resources Mentioned In Today's Conversation

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281 | End of Year Wins | Part 1 Dec 25, 2020

It's the ChooseFI Christmas Edition where we hear end-of-year wins direct from our community members. During this live event, listeners shared the actions they've taken during the past year that have helped them to spend less, earn more, and enjoy the journey.
This year, the year-end-win episode took place in a three hour live Facebook and YouTube event featuring around 20 members of the community.
Despite how tough this year has been, many people were able to implement some of the strategies and tactics discussed on the show into practice and find more margin in their lives.
The first featured win comes from Valerie. She purchased a condo a couple of years ago and has been working on renovating it. While not a financial win, Valerie says putting it behind her is her biggest personal win.
Finally closing out the permits allowed her to refinance her mortgage, saving her $466 a month. She was also able to pay off her credit card renovation debt, saving her an additional $600 a month. In total, Valerie paid off $34,000 of debt.
Besides the debt, Valerie also maxed out contributions to her HSA and because she now has an additional $1,000 a month, she increased her 401k contributions from 8% to 11%.
Valerie opened her first taxable investment account and rebalanced her portfolio, while her side hustles earned her $4,000, mostly from participating in focus groups.
Due to COVID, Valerie wasn't spending as much money and it allowed her to focus on things she might not have had the time to do and she's now one-third of the way to her FI number and hoping to retire by 2030.
Brad comments that cutting $1,000 in monthly expenses is $300,000 less Valerie needs in retirement when using the 4% rule.
Valerie has been sharing her copy of ChooseFI: Your Blueprint to Financial Independence with family members.
The second end-0f-year-win comes from Michelle who learned about ChooseFI after Googling financial independence while attending a conference. To convert her husband, she had him read ChooseFI's book and then scheduled a date night to discuss it.
Michelle‘s husband, Greg, never thought he could retire early. They didn't have a lot of debt but bought into the concept of getting 1% better and things began to snowball.
During the last year, Michelle and Greg joined their finances, maxed out their 401k, sold a rental home, bought a short-term rental, and broke up with their financial advisor.
They opened a Vanguard account and moved their accounts over after discovering their financial advisor was making a lot more in fees than the $50 per month to come up with an investment plan.
Because Michelle and Greg met later in life, they had maintained separate accounts. After joining finances and being transparent, they found making small 1% better changes each week didn't hurt at all.
All of the extra money that came in from COVID refunds or bonuses went toward paying off the debt from new windows. They also started travel hacking.
Michelle says when breaking up with your finical advisor, chances are they won't understand FI, so state that it's you not them and feel free to contact her for help breaking up with your advisor.
Up next is Chris, who has been a member of the FI community for about three years. He got started by reading The Simple Path to Wealth and Your Money or Your Life.
For Chris, the pandemic has been an opportunity allowing him to save $15,000. He's been able to max out his HSA and Simple IRA.
Chris also has two adult children to who he has introduced the concept of FI, as well as his nieces and nephews who have been very receptive to the information Chris has provided. He says to reach out and if they are interested they will let you know.
One of the actions Chris took this year was to switch to Policygenius, which saved him 50% on policy premiums.
The next end-of-year-win comes from Lauren. Lauren found ChooseFI in late-August and is on Episode 61R.
Lauren got a side gig in August being a census worker which enabled her to pay off all $7,000 she had in consumer debt. With all of the premium pay she earned, it ended up being $1,300 a week. She says she wouldn't have taken on the side hustle if it wasn't for the podcast.
After learning about 403b's, she switched from stocks and bonds to VTSAX. She and her husband also opened up a joint VTSAX account and reduced all of their monthly recurring bills to as low as they could possibly be. She's currently looking for hacks for satellite service.
In July, they moved into a home that they are caretakers for, which is an upgrade that eliminated $1,100 in rent. They found the caretaker job through her mother but says other caretaker or home sitting positions can be found online.
Since August, Lauren has earned or save roughly $9,000 since finding ChooseFI and taking action. They are now trying to pump as much money as possible into retirement accounts.
When an old job asked her to come back to work for them, she opted to focus on what things were important, like the baby she and her husband are expecting and how they can raise it frugally.

Resources Mentioned In Today's Conversation

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280 | The Debt Free Guys Dec 21, 2020

Is it possible to live fabulously without being fabulously broke? The Debt Free Guys say you can.
After a year and a half of dating, John and David finally came out of the closet to each other regarding their finances. Between the two of them, they had $51,000 in credit card debt even though they had 15 years of experience in financial services helping others with managing their money.
Starting with the first credit card his parents gave him for emergencies, David began a 17-year run carrying credit card debt. Instead of reserving for emergencies, he viewed it as a source of side money and never understood the value of paying it off.
Despite never paying the balance off, his credit card limits kept increasing. After accumulating a significant amount of credit card, he began having trouble making even the minimum payments. Once, when his parents wired him money, it was immediately garnished from his bank account because he had failed to make payments. And yet he still didn't learn his lesson.
Both John and David came from a time when it wasn't okay to be gay. As a result of being a part of a marginalized community, many parts of society sent the message that they couldn't be who they were. The baggage they carried, as a result, manifested itself in various ways, one of which can be financial challenges.
Prudential conducted a study that showed there is a sexual orientation and gender identity pay gap. A university study has also shown that simply being gender non-conforming can limit you from getting a job or being promoted.
As a result, gay men sometimes seek validation through their clothing, bodies, cars, houses, and vacations even if they have to finance it.
The LGBT community hasn't traditionally fit the image of retired couples financial services companies market to. The community hasn't been encouraged through representation to think about their finances.
The premise of the Queer Money Podcast is the get the finance conversation started which is what any community needs to start moving toward financial security. They challenge the community to think about what it is they truly want in life despite how they are told they should look, act, and want.
It was the trap they had been living in. Although they were making decent salaries and experts in money, John and David weren't living according to their values.
After having the discussion, they decided what they wanted was to be able to retire comfortably, travel without accumulating credit card debt, and give back to the LGBT community in a way that didn't penalize them.
David says that even in the financial services industry there is a facade and although the experts know what they should do, they are hiding the truth about who they really are. Even for those who know the tricks to save, it can be hard to put it into practice.
When you don't tell the truth about who you really are, you don't seek assistance or help to become the person you are pretending to be.
While their credit card debt was at $51,000, John and David were spending $10,000 a year in interest payments. They believe that like them, most people who have similarly high credit card debts have a spending problem, not an income problem.
The first step is to sit down and have the conversation with yourself, your partner, or your family about what it is you want your life to look like.
The second step was eye-opening. John and David performed a spending analysis tracking when every penny spent had gone in the previous year. They had been living like rock stars, spending money on dining out, happy hours, designer clothing, and travel yet they didn't think their quality of life had been that great.
They finally realized they were financial messes when walking into their dark, basement apartment right after considering buying land to build a vacation home on in the Colorado mountains. They questioned where their life was going and confessed their debts to each other.
Figuring out what they wanted took three to four months, the spending analysis took a weekend, and it was two and a half years to pay off the credit card debt.
Unfortunately, after paying it off, they reverted to old habits and racked up $6,000 on reedit cards again. Realizing they were on the wrong path again, they corrected course and paid that off in several more months.
The spending analysis showed that with several small tweaks, they could recoup a lot of their spending. Grocery and dining out costs were cut and when going out with friends, they tried to do it without spending much money so they could maintain the social aspect of their lives.
John and David knew that if they could not have fun during the process of paying off debt, it would not last.
When confessing why they couldn't spend on activities like before, they found the friends they told were completely fine with it. For some friends, it created an opportunity to have their own money conversation, while other friends did drift away.
One of the strategies John and David used was to look for free or inexpensive actives they could do on the days they wanted to be social with others. They were blown away by the number of free and fun activities they found in the city of Denver. Learning that you don't have to spend a ton of money to have a good time changed the way they thought about having a good time. They called it the NSE for Not So Expensive.
John and David believe that when you put it out that you are saving for your financial goals, you begin to attract other people who want to have that goal in their life too and build a community of people supporting the lifestyle you want to create.
Another tactic John and David used were Milestone Rewards. They would stash away a small mouth of money to have some fun with as a reward when they had met a goal, such as paying off a certain amount of debt.
After completing the spending analysis, they realized it would take four to six years to pay off their debt using the snowball or avalanche methods. They knew they needed to do it quickly or they would get bored.
It was the high-interest credit card debt preventing them from paying it off quickly, so they came up with the debt lasso method.
With the debt lasso method, they lowered their interest rate to as low as possible and consolidated the credit card debt to as few locations as possible.
The debt lasso method has several pieces to it. You have to commit to not adding more to your card balances and commit to paying a specific amount every single month toward the balances.
Next, similar to the snowball method, if you can pay one off in full in a month or two, do it and get the quick win.
Then use the lasso process to pull all of the balances into as few locations as possible at as low-interest rates as possible.
Then everything should be automated. When monthly payments are automated, you'll never miss a payment which is when interest rates will be raised.
And finally, monitor your accounts so you know when a card is paid off and move payments to the next account or make extra payments when you can.
The snowball method works on emotion and has you pay off cards with the lowest balances, one after the other. In contrast, the avalanche process has you pay off the cards with the highest interest rates first.
Using the debt lasso method, they did have to pay approximately 3% in balance transfer fees, but they shaved years off the repayment plan saving more in interest payments.
Because John and David each had good credit, they were able to consolidate the debt from two to three high-interest cards each to 0% interest for 12-18 months cards and continued to roll the debt to 0% interest cards as needed while paying down their debt.
On the Debt Free Guys website, they have created a calculator to estimate how long it will take to pay credit card debt off using different payoff methods. They encourage folks to pay the most money toward cards with the highest interest rates.
John and David say that while 0% credit cards may not be plentiful right now, they've found that credit card companies will often send out 0% offers when a credit card's debt has been paid off because they know you likely have other credit card debt. Just be sure to understand the fine print to avoid any unpleasant surprises.
It is incredibly helpful for partners to be in the same state of mind when it comes to paying off debt. It's also useful to find a tribe of people who are doing it or an accountability partner.
The Debt Free Guys have a weekly call named Money Therapy included with their credit card payoff course.
To join the community and get the debt lasso calculator, go to debtfreeguys.com/choosefi.

Resources Mentioned In Today's Conversation

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279 | Be Wise, Your Financial Future is at Stake | Dan Otter Dec 18, 2020

Teachers have been getting taken advantage of when it comes to their investment options. Thankfully, the internet and technology have made it easier to get the word out and help teachers wanting to do better.
During his first year of teaching, Dan Otter was asked if he cared about his financial future. He politely listened to a hardball sales pitch about an investment scheme he didn't fully understand.
Rather than blindly following other teachers at his school who had invested in it, Dan began to educate himself by learning about John Bogle, Vanguard, and low-cost investing.
He learned the salesperson who had approached him was trying to sell him a high-cost annuity inside a 403b and that it was a terrible product.
Unfortunately, most of his colleagues had signed up for these poor investment products despite having more than 100 options available to them, including Vanguard.
Dan began to speak up and asked pointed questions when other teachers began to talk about their sales agent in the teacher's lounge. Though he had never done it before, he started looking at their statements and showing them how much the fees were.
Appreciating Dan‘s insight and help, it was suggested that he put on workshops. After thinking about it, he bought the domain 403bWise, and with help from a friend, they built and launched the website in March 2000.
The mission of the website was education and advocacy, where teachers and school employees could come and learn about the 403b in a non-sales environment and also advocate for low-cost options like Vanguard.
Although this was 20 years ago, Dan says the problem with 403b persists today. Teachers usually find 403bWise after they have been sold one of these expensive products.
Dan says that not all 403b's are created equal. After working in different environments where 403b's are available. They were largely terrible in the public school systems with many vendors. Private schools generally have just one vendor, as do universities, like Fidelity, TIAA-CREF, or Vanguard.
403b's fall outside of federal oversight, specifically Arista regulation, so the employer does not have the same kind of fiduciary duty. Just being on the list signifies tacit endorsement, however, the vendors are not vetted by the school districts.
Just because you aren't paying money out of pocket, doesn't mean there are no fees. Vendors make the fees hard to find.
Teachers all over the country can get fee information on the website, 403bcompare.com.
Dan says to look for costs in two places; mortality and expense, and then look at the mutual funds that are part of the annuity. If you find out that you are in a bad product, you may also have to pay 7% of your balance just to get out of it.
Using the hypothetical example of a relatively new teacher earning $50,000 per year who expects to retire after 30 years, the difference between investing in one of these terrible annuity products versus one found after learning more from 403bWise can be $200,000.
Over 35 years, a teacher contributing $250 a month earning 6% will earn $185,391 when investing with one of the lunchroom sales agents, while the teacher investing the same $250 a month earning 6% interest with a low-cost company will have $343,000 at the end of 35 years.
Dan was able to visit the Vanguard campus as a guest of their 403b unit and says they are very focused on this market and getting on vendor lists.
A good fee for a 403b is 0.5, or 50 basis points, or less. Companies like Fidelity, Vanguard, and Aspire Financial Services are good. In California, CalSTERS, the state pension agency, created their own 403b after and is on most vendor lists.
Do not confuse Fidelity with American Fidelity Assurance, which is a high-cost company.
A 457 may be an even better plan than the 403b. Reputable 457 plan companies include TIAA-CREF, T. Rowe Price, and Vanguard.
The National Tax Deferred Savings Association is a well-funded lobby with an interest in maintaining a high cost, multi-vendor 403b environment.
Montgomery Country schools in Maryland is one of the few school districts to put their 403b plan out for bid. They reduced the number of vendors down to just one, Fidelity, and plan participation and contribution have increased.
Dan would like to see every district do what Montgomery County did, but it needs to start with the teachers from the ground up.
The 403Wise website has three main sections, education, advocacy, and community. Under the Quick Start Guide, the tool, Find a Good Vendor, on the home page allows teachers to search within their own school district.
403b compliance is often outsourced to third-party administrators who bring in vendors who yield them revenue.
Even one of the big national unions, the NEA, has an endorsement deal with a financial company called Security Benefit, which offers a product called the NEA Value Builder with load fees of 5%. After being sued, they offer a fantastic and unadvertised product called NEA Direct Investment.
Anyone who would like to try and make a difference in their school district should reach out to 403bWise because they are building a network of advocates.
In addition to joining the Facebook group, reviewing the website, and learning about the 403b vendors available to you, check to see if a 457b plan is also available.
A 457b works similarly to a 403b but has a few more amazing benefits. If you separate from service, you can access the money in a 457b tax and penalty-free. Also, when just three years before retirement age, you may double contributions. And finally, 457b's requires more fiduciary oversight.

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278 |Retire Early...For You | Amy Blacklock Dec 14, 2020

Don't fall for the misconception that financial independence is just for 20 and 30-year-olds. It is for everyone at any age and it's not too late to get started.
Amy had a wake-up call in her early 40s. Starting with no net worth, through flexibility and adaptability, she got started and reclaimed decades of her life.
Amy describes herself as a trier of many things. She used to wonder how other people do it. How do other people drive new SUVs, live in a large home, dine out, and save for their kids' education and their own retirement? She says most people don't do it all.
You have to select for yourself what's important and save wisely to spend on it.
Previously, Amy was trying to keep up with everybody else, thinking that she needed it all to be happy. She was buying all the stuff but wasn't saving for the future.
She heard something on the radio one day about needing to save a million dollars for retirement and thought it didn't seem possible to get there. She and her husband were in their 40s and she knew something had to change.
Amy began looking at what other people were doing but what she didn't know if that everybody was just like her, trying to keep up and not saving for the future.
She had grown up with a single mom who had a lower-middle-class income. She always wanted more because she felt like she was always lacking. When she got a job and was earning money, she worked hard and thought she deserved all those things everyone else had.
She had fallen into the trap of thinking money equals happiness and once in, it was hard to get out of that trap. While she had a mortgage and car loans, she didn't have much other debt. However, she was spending almost everything coming in and her net worth wasn't moving forward much.
After a divorce a the age of 43, Amy's net worth was approximately $150,000. The desire to get out of a job she hated and start her own business lead her to examine her spending.
She began researching methods and ideas for saving money where she found Mr. Money Mustache and many other personal finance blogs and websites.
Though Amy realized she and her new husband were older, she thought that they could make significant changes and create the financial space they needed to retire early for them.
Trying to keep up with everybody else wasn't getting them anywhere, but she might be able to learn and try to keep up with the people saving money and retiring early even if they were far younger.
Originally, they had been thinking they would don't retire until 67, so retiring in 10 years in their 50s sounded much better.
Trying to convince her husband to get on board with the changes that needed to be made meant that his habits had to change. They had to reframe their thinking. Amy says the Dave Ramsey quote sums it up, “Live like no one else now, so you can live like no one else later.“
They realized that despite chasing happiness by going out to dinner and buying things wasn't actually making them happy. Cutting back didn't feel like deprivation because they weren't things that weren't meaningful or lighting them up.
Amy and her husband reevaluated where their money was being spent. She thinks making communication a foundation of their marriage was essential. It was hard to talk about what they wanted their lives to look like 10 and 20 years down the road and how they were living five years ago wasn't going to get them there.
Using the 25 times expenses rule, Amy guessed they would need a million dollars to retire and targeted 2024 for retirement.
To do it, they cut expenses, got rid of their newer vehicles, and refinanced to a 15-year mortgage. To increase their incomes, they both changed jobs twice.
With all of the changes they made and a phenomenal stock market, they have been able to cut their timeline to financial independence down. They considered themselves FI in 2019, just six years from when they started.
Amy was able to increase her income during those six years by finally completing her degree after going to school part-time while also working. It gave her the confidence to try and find a better paying position.
Because she was a hard-worker and stayed in touch with people on LinkedIn, she was approached about a new position. She then negated the significant salary increases.
To prepare for salary negotiations, Amy used Glassdoor and LinkedIn premium to see what other positions were paying.
Amy says you have to believe it's possible never too late to start. You have to be flexible, willing to embrace fear and go for it. Give up the ego and be willing to learn, even from a 25-year-old. Stop worrying about what other people think.
Stuff isn't going to make you happy, but having your family safe and secure and being able to retire will. The changes Amy made were sacrifices, they were changes that gave her options later.
If you're in your 40s and you've never questioned drift, there's probably 30% you can cut without missing it.
Initially, Amy and her husband cut too far, but then they added some things back in. Now they mindfully choose when to go out and enjoy craft beer or eating out.
Amy says happiness ebbs and flows. Her happiest moments are with her grandkids. She works a lot on her passion projects which brings her a lot of joy.
Her blog, LifeZemplified.com shares a little about her story, what she is doing, and how important it is for others to take action.
WomenWhoMoney.com was started as a safe space for women to learn about personal finance from a female perspective, though 40% of their audience is now male.
The content on Women Who Money was leveled for Beginner, Intermediate, and Advances personal finance knowledge with over 400 articles.

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277 | Gauging the Weight of your Portfolio Dec 11, 2020

Setting up your financial life includes updating your investor policy statement and examining the rationale for equal weighting inside your index funds.
Brad is giving his physical fitness a boost in December with a month-long burpee challenge. A full-body exercise that can be done quickly at home without any equipment, Jonathan asks what would change about your life if you took the challenge of doing 10 burpees every day for the next year?
Brad was inspired to take on the burpee challenge after watching Alan Donegan and his wife, Katie, in a video they posted of themselves doing burpees. They weren't holding anything back and completing each rep with a high degree of difficulty. He wondered what it would look like to give everything your all in life, like Alan and Katie were with their burpees?
Jonathan reflected on how he is often more focused on getting to the end result than he is in the quality of the movement, which he likens to the old saying about losing sight of the forest for the trees. We should focus on systems, processes, and workflow, over results.
Get up off the couch and do something that will make your life better in some small way. Cancel a subscription, get rid of convenience, meal plan, do something that makes your life 1% better. And if you start doing burpees as a result of this episode, send in an email to let Brad and Jonathan know.
Although we often talk about and identify the massive actions people can take to make their financial lives better, the community has been very receptive to the idea of aggregation of marginal gains.
This year, Jonathan has been having conversations with his wife about their investor policy statement and what changes they might make to it since they feel like they are in a place of calm and unemotional decisions can be made.
Brad and Laura believe in thinking long-term, lowering their expenses, continuing to invest, and having things on autopilot. Their investments are almost entirely in low-cost brand-based index funds, like total stock market and S&P 500 funds. they also do have some bonds, international stock funds, and rental real estate.
Jonathan and Dani have similar investing strategies. They invest for the long-term and diversify in low-cost funds to avoid fees.
Recently, Brad and Jonathan discussed the difference between a total stock market index fund and an S&P 500 index fund and how with a cap-weighted fund you a disproportionate amount of the largest companies. A lot of investors believe you should try to have small and mid-cap companies equally weighted in your portfolio.
It used to be difficult to set your portfolio this way. Recently, online investment firms have come online, such as M1 Finance, Betterment, and Wealth Front, whose interfaces have made this significantly easier to do.
Jonathan recently conducted an experiment with his own investments following one of Paul Merriman's portfolios that can be found on M1 Finance. Fifty percent went into a total stock market index fund, and the other 50% went into an equally weighted fund. With the impact COVID had on small businesses this year, the equally-weighted portfolio was crushed.
However, when pursuing FI, we are interested in performance over the long-term and Jonathan notes that the smaller companies that have been crushed this year, might actually be on sale.
Because Jonathan doesn't like sitting on a bunch of cash, even in an emergency fund, the idea of negative correlation is appealing to him. He wants his emergency fund to hold steady or go up when the market is down and is willing to sacrifice a little bit of return to achieve that.
Your options to equally weight index funds may be more limited at large institutional firms, but with M1 Finance, Jonathan was able to set up a Negative Correlation pie, a Can I Pick pie, and an Equities pie.
Jonathan's M1 Finance account acts like an emergency fund but is also a growth machine. It is more conservative than his 401Ks. He views these taxable investments as another form of savings.
Some of Paul Merriman's recommended ticker symbols are VIOO, the Small Cap 600, IJS, the Small Cap 600 value, VOV, the 1000 Value index fund, VOO, the S&P 500, and others like VEA and VWO.
While many of us want to keep things simple and do not want to be stock picking, when investing in something like an S&P 500 Index fund, we are essentially stock picking. Understanding that, Brad still chooses to invest mainly in total stock market index funds.
In episode 194, Frank Vasquez talked about after taking a hammering in 2008, he wanted something in his portfolio that would go up when others were fleeing the market. He discussed corporate bonds, precious metals, and US treasuries were some of the types of investments people flee to.
Jonathan and Dani decided to invest in precious metals, which will hopefully be more effective than a savings account
While Brad doesn't believe in investing gold, Jonathan notes that if there is ever a loss in confidence in government, people will flee fiat currencies.
It's good to understand that these different tools are out there and react to market conditions differently.
A year-end review is an excellent time to decide what to invest in rationally and from a point of understanding your own psychology.
The first week's community win winner is Chris, who recently became debt-free, max out his 401K and HSA, as well as he and his wife's IRAs. They also began investing in a taxable account and contributing to their son's 529 accounts.
The second winner is Khang, who negotiated faster internet for less money using online chat. It never hurts to ask, but if you never ask, it's always a no.

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276 | How to Set up Your Financial Life | Investing and Banking Dec 07, 2020

Continuing the conversation discussing financial basics, today's episode covers how to get started investing, banking, and setting up your financial life.
As a recent college graduate, Brad had the motivation to get his financial life together but didn't really know how to go about doing it. During his first job, he wanted to open up a Roth IRA after learning about the power of compound interest.
Unfortunately, the investment advisor who helped get him set up invested in a fund with a 5% upfront load. That means 5% of his investment automatically went to pay the advisor's commission. Brad'sinvestment was treated like a quick payday for the advisor.
Not all financial advisors are bad, but you can learn how to get set up with a low-fee or no-fee investment without feeling confused or overwhelmed by the process.
It's important to understand all of the possible fees that can impact the return on your investment. In addition to load fees, there are other fees to watch for, such as assets under management fees where you pay a percentage for the advisor to manage your account, or expense ratios which pay the team who actively manage the activity of buying and selling within the fund account, and with a surrender charge, you may pay fees to get your money out of the investment.
If Jonathan was giving a family member financial advice on how to get started, it would begin with banking. Do they have a banking system set up and understand the differences between checking and savings accounts? What other variables should be considered?
Getting a checking account set up is first and becomes the repository for income coming in and money going out, such as paying bills. Brad uses autopay to have many bills automatically draft from his checking account.
Brad likes simplicity. Because he knows which days money will be coming in, he sets up his bill autopay dates around that. He also ensures he has a couple extra thousand dollars in his checking account to cover anything unexpected with him having to track the balance every day.
Jonathan does something similar in that he uses the pay from last month to pay this month's bills, which means there is always around a month's worth of pay in his account giving him plenty of margin.
Try to minimize fees in every aspect of your life. Select a bank account option that requires the lowest minimum account balance to avoid a monthly fee. Avoid overdraft fees by asking the bank to remove that option or connect to a credit card. Don't pay ATM fees by trying not to use cash or plan ahead and withdraw cash from your own bank fee-free. Some online banks will reimburse ATM fees.
Brad doesn't keep all of his financial assets in a checking account. He used to use a saving account at the same bank that was connected to his checking account. However, it earned very little in interest. Online savings accounts, like those at CIT Bank, frequently offer a much higher interest rate on their savings accounts and still allow access to the money within 2-3 business days.
Your investing goals are determined by two items: your cashflow and what sort of safety net you need. Money that might be needed in the short-term and accessible within days, such as for emergencies, should be kept in cash in a savings account. Money that isn't needed for 10 years or more, should be invested because money can lose value over time due to inflation. Instead, that money can be making money and beating inflation. To maintain value, your money needs to make 1-3% per year just to keep pace with inflation.
Knowing how much to keep in savings and when to move to investing depends on your risk tolerance.
Make sure your bank is FDIC insured, which means it's backed by the United States Government and covers depositors in the event of bank failure.
Once you have a checking account set up and you are putting away something each month into savings, getting started investing would be the next step.
Brad says the best place to get started is with your company's 401K. Find out what the 401K match is and invest at least up to the match. The match is free money from your employer and technically part of your overall benefits package.
It may be something like a 100% match on the first 3% of your salary you invest. If you make $100,000, 3% equals $3,000, it means you invest $3,000 of your salary and your company also puts in $3,000. It's a guaranteed return.
If there's an option to check a box and automatically increase your contribution by 1% each year, do it.
Instead of a 401K, teachers may have a 403b or 457 which are essentially the same type of investment vehicle.
The maximum amount an employee may contribute in 2020 is $19,500. The total limit for employee and employer contributions combined in 2020 is $57,000.
Each person needs to figure out what works best for them in terms of funding an emergency fund, paying off debt, investing in their 401K, or Roth IRA. Since contributions may be withdrawn from a Roth IRA tax and penalty-free, it could be used like an emergency fund.
A 401K is funded with pre-tax dollars, meaning it was invested before that portion of your income was taxed. When it is withdrawn at the age of 59 1/2 or later, it gets taxed at your marginal tax bracket.
When picking a fund within a 401K, Jonathan's strategy has been to look for index funds or anything with the index beside it.
Brad notes that the list of funds may also show the funds' expense ratios. Look for the ones with the lowest expense ratios which will be the most similar to total stock market or S&P index funds. Go to Google and type in the ticker symbol to find out more about the specific fund.
Actively managed funds are run by teams of well-compensated people whose goal is to beat the market. Their fees are incorporated into the expense ratios. Index funds do not try to beat the market, they try to track their market index. Their expense ratios are dramatically smaller since they are managed by a computer algorithm not a team of managers.
ChooseFI is anti-debt, but not anti-credit card. Credit cards a financial tool when used responsibly and paid off on-time and in-full each and every month.
Brad tries to use his credit card as much as possible for the safety and security credit card purchases provide, as well as for the travel rewards points that allow his family to travel the world for free or almost free.

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275 | Board games and War Games Dec 04, 2020

It's no secret that Brad and Jonathan's families are board game fans. One way they can typically save 20-60% on the cost of board games is by watching for price drops on Amazon using CamelCamelCamel.
Brad was able to save a substantial amount on the purchase of a squat rack simply by being able to stand by and wait for the price to drop.
Listener Liz heard about CamelCamelCamel on the podcast and added a list of board games to her watchlist. She was eventually able to purchase all of them at roughly half the list price.
Life may be the ultimate board game where your finances are a piece of it. When you know the rules, it makes it easy to win. Just like there are strategies for winning at Monopoly, there is an unwritten and unspoken framework for living a better life.
Now that 2020 is getting back to a more steady-state, it may be time to start wargaming your finances and look at your risk tolerance.
This year that stress-tested our investor policy statements and mindset. Perhaps you don't have the risk tolerance you thought you did. Times of stress and uncertainty are not the time to make changes. Adjustments should be made when times are calm.
There are different variables to consider and one of the questions to ask is “How much does your life actually cost?”. This can change over time and affect your risk tolerance.
A couple of years ago, Brad intentionally increased his costs by moving to a more expensive home. Though it increased costs by 40-50%, they felt the life benefits would outweigh the additional costs.
The only debt Jonathan has is his mortgage, reducing his structural expenses to housing, food, utilities, and insurance. He thinks even some of that could be cut down to support a survival budget if required.
If this year has shown us anything, it's that your income source may not be a stable as you might have previously thought. You shouldn't be dependent upon anyone.
There's a mindset of positivity that takes a terrible situation and figures out how to pivot. With your wargaming plans set, you can find a way out of it.
Brad lived through a financial calamity at 22 years old when he worked for Arthur Anderson. After the Enron scandal, his company went out of business. He witnessed others who were living on the financial edge, but because Brad lived at home and had very little debt, he was fine.
Jonathan says he doesn't mind spending a lot of money on an item, but he doesn't want to spend a lot of money on something that locks him into structural, recurring payments that make his life more expensive.
If something were to happen to his business, Jonathan is confident that with the skill set he's acquired and one year of financial runway he's saved, he would have a very soft landing. The events of the last year have him reevaluating his investor policy statement, possibly driving changes to his investment allocation to a more conservative approach now that the market is at record highs.
Jonathan is considering making these changes after riding the roller coaster of the last year and holding firm. Now that things are back to relative calm, he can make decisions based on knowing himself better, not based on fear.
In the episode with Paul Merriman, he made the case for a portfolio that weights all of the asset classes evenly. Total stock market funds are cap-weighted, meaning the top companies make up a disproportionate percentage of the total market cap. Therefore, a disproportionate amount of your money is invested in these top companies and you aren't invested as diversely as you think.
Jonathan has had half his money invested in a total stock market fund and half in a portfolio more similar to what Paul Merriman recommends through M1 Finance. Paul Merriman's method has gotten crushed in the last year, but over a 40 year window, it should bring higher returns. Jonathan is trying to figure out a mix that he is comfortable with.
Another expense area to look at are investment fees. It used to be expensive to invest, but investment costs have become much more competitive. You don't need to spend 1% on commissions and another in expense ratios. Fees have gone to near zero if you look for them. Don't let people “help” by trading on your fear.
War game your finances out. Think about the variables unique to you, analyze your risk tolerance, your income, your expenses, and what you have control over.
This year's Year-End Wins episode will be a live podcast on Dec 8th at 7:30 pm Eastern time. RSVP for the live event at ChooseFI.com/2020wins.
If you want to share your 2020 win, send an email to feedback@choosefi.com.
This week's book winner is Abbey. She turned 22 this year, is almost finished paying off $17,000 student loans and maxed out her Roth IRAs for 2019 and 2020, as well as her 403b, 457, and HSA, and broke the $100,000 mark in her first year of nursing. Congratulations, Abbey!

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274 | Tax Planning 2020 | Sean Mullaney Nov 30, 2020

It's end-of-year tax planning time. As you get further along in your financial independence journey, there are likely more end-of-year tax planning items you'll need to be aware of. Having a checklist to review annually is useful.
It's been an unusual year and December is that time to begin making end-of-year tax considerations. In addition to the normal checklist, there may be additional items to consider in this remarkably different year.
Sean Mullaney says unique to 2020 are Roth conversions. While Roth conversions should be on the checklist every year, this year there was a much greater chance of diminished income which may provide the opportunity to make Roth conversions in a lower marginal income tax bracket.
In any year when income is much lower than it normally is, Roth conversions would be at the top of your mind. The deadline is December 31 and there are no extensions.
While complex situations may benefit from professional consultations, anyone with mostly W2 income can find their tax brackets online. If your income has dropped from 22-24% to 10-12%, locking in a Roth conversation at that lower rate is effective tax planning.
A Roth conversion is when you go into a traditional IRA account and convert it to a Roth IRA. This is a taxable event, but you are intentionally choosing it because you are in a lower tax bracket for the year rather than convert or withdraw funds in a letter year when your income is higher and the taxes will be higher.
How much money should be converted to a Roth IRA? Sean says he has never encountered a client who has had too much money in a Roth IRA. While the action is irrevocable, there is no penalty for converting too much. If a portion of the conversation is taxed at 22%, it is not the most efficient conversion, but your future self will likely still be quite happy that you did it.
Some employers allow for Roth conversions within their 401K plans.
The deadlines for completing some of these end-of-year tax planning checklist times vary. Solo 401Ks and qualified business income tax deductions should be completed as soon as possible.
In addition to Roth conversions, another item with a Dec 31 deadline is charitable contributions.
Checklist items with an April 15 deadline are traditional IRA, Roth IRA, and health savings account contributions.
A good rule of thumb is individual tax accounts have a tax return deadline, not an end-of-year deadline.
The reason solo 401Ks have an “as soon as possible” deadline is that unlike IRAs, solo 401Ks require more time and paperwork to do. It may not be necessary to have it funded by Dec 31, but you'll want it set up and have a well-documented game plan. S-corps do have to fund the employee-side by the end of the year.
The first item on Sean‘s checklist is charitable contributions. With that category are two options to consider, a donor-advised fund if you plan to itemize deductions this year, or regular year-end charitable contributions.
If you don't plan on itemizing, in 2020 up to $300 per tax return make be taken as a charitable contribution against your adjusted gross income.
Another checklist item to be completed by the year's end are small business expenses since they are deducted when paid for, not when accrued. Businesses who have had a good 2020 may want to accelerate these payments to get the deduction this year. While businesses that have struggled in 2020 may want to hold off making payments until 2021.
In response to a question from Brad regarding credit cards, Sean confirmed that credit cards work on a cash basis so the deduction takes place in the same in which the credit card was used, not when the credit card bill was paid.
Paying bills with a check becomes a little trickier as you may need to prove to the IRS that the check was written and mailed on a business day prior to Dec 31 even if the vendor does not deposit the check until January of the following year.
A backdoor Roth IRA applies when your income is too high to contribute to a regular Roth IRA. If you've done a backdoor Roth IRA in 2020, don't roll over any 401Ks, 403Bs, or 457s into tractional IRAs before Dec 31, wait until Jan 1 so it's not complicated by the pro-rata rule.
To clean your investments up before leveraging the backdoor Roth technique, try and roll traditional IRA accounts into a new employer's 401K plan. Then implement the backdoor Roth IRA which may be done by April 15.
Sean has a blog post describing the process to get clean with traditional IRAs before doing a backdoor Roth IRA.
Tax-gain and tax-loss harvesting are also both Dec 31 deadlines. The stocks need to be sold by the end of the year. With tax-loss harvesting, you may not repurchase those securities within 30 days before or after the sale to comply with the wash sale rule.
If you're in the 12% marginal federal income tax rate or lower, the capital gains rate today is 0%. You may want to sell stocks to diversify your portfolio or sell and rebuy the same stock to realize the large capital gain and reset your basis without paying federal income tax. Unlike tax-loss harvesting, there are no timing considerations to make when repurchasing the same stock with tax-gain harvesting.
State income taxes may not favor capital gains in the same way the federal tax does.
Keeping all of the rules and impacts of buying and selling straight can be confusing and time-consuming. It is helpful to keep your tax records as clean as possible by doing everything in a specific account for this purpose. Sean states that tax-loss harvesting should be a tactic and not a goal occurring only in years where you are down.
State tax considerations to be mindful of are fourth quarter estimated tax payments and deduction planning. In California for example, it may be beneficial to take the standard federal deduction and itemize to take advantage of the state property deduction, possibly even pre-paying on property taxes.
A FI framework allows you to play from a position of strength. The financial independence community can take advantage of timing their payments for certain things and make strategic decisions because they don't have the same issues with cashflow that people on a traditional path might have.
While many in the financial independence community may be too young to think about required minimum distributions (RMD), it's good information to review for future planning.
RMDs apply to all retirement accounts except Roth IRAs. Starting at age 72, minimum distributions will be required by Dec 31 or there is a penalty. However, in 2020, they have been canceled and you may want to convert it into a Roth.
When you inherit an IRA, it doesn't matter how old you are. You are subject to an RMD or a 10-year rule. It would be wise to consult a tax professional when inheriting a sizable IRA.
With an inherited Roth IRA, the account will have to be emptied within 10 years following the death of the original owner. Different rules may apply to eligible designated beneficiaries who may have RMDs instead.
An adult who inherits a traditional IRA has a tax issue and probably will need professional assistance wit
The year-end is a good time to update beneficiary designation forms. Financial institution accounts are governed by the beneficiary designation forms, not wills or trusts, so it's important to ensure these are up-t0-date.
Year-end tax planning is great, but Sean likes long-term strategic tax planning to minimize your total tax over your lifetime. January is a great time to start long-term planning.

As always, the discussion is general and educational in nature and does not constitute tax, investment, legal, or financial advice with respect to any particular taxpayer. Please consult your own advisors regarding your own unique situation.

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Take complete control over your finances with M1Finance
Sean Mullaney's 2020 Year-End Tax Planning article
Get started on your path to financial independence at ChooseFI.com/start

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273 | What's an Emergency? Nov 27, 2020

We're going back to basics and taking a deep dive into the Roth IRA and the levers, tools, and investing strategies available to investors.
Although ChooseFI offers the free FI101 course, taking small actions are important. Get up to speed and start taking action with the free five-day challenge by going to ChooseFI/start.
ChooseFI has presented basic investing strategies over the years and will revisit in the coming months to distill and hash out all of the different methods to understand the fundamentals.
Many of the strategies have a lot of overlap starting with low-cost broad-based index funds. What they all share is a common-sense approach and simple investing strategy which is that time in the market is better than timing the market.
Most traditional index funds are cap-weighted resulting in a higher percentage of money being invested in a few top companies. Rather than take a dogmatic approach to low-cost broad-based fund investing, it may require the application of scrutiny, being open-minded, intellectual honesty, and consideration.
JL Collins helped open up Jonathan's eyes to the power of simplicity and helped give him the confidence to start doing better with his finances. But as the terms and concepts have become more familiar, other perspectives become visible, along with the pros and the cons, and the questions he's been able to ask have gotten better.
The questions you have as you learn more are worth exploring to help build confidence in your plan.
When investing, minimize fees as much as possible. Fees for buying and selling, expense ratios, and advisory fees are all negatively impact your long-term returns.
We can learn new things and get rid of limiting beliefs. After a speculative real estate investment went poorly, Brad was afraid of real estate investing. However with some security, knowledge, and looking at it as a business, he has now invested in two single-family rentals which are doing well.
Financial independence is not finances. It's not money, health, or time. It's all of it. It's making objective, fair-minded judgments about societal norms, seeking the truth, and making decisions in our best interests.
Sean Mullaney is a big proponent of the Roth IRA and the possibility of using a Roth IRA as an emergency fund.
Sean says that I all his years of practice, not one of his clients has ever had too much in Roth accounts. The advantage of the Roth IRA is flexibility.
With a workplace 401k, your employer does not have to allow distributions and if they do, it is probably subject to penalties and taxes. In contrast, contributions may be withdrawn from a Roth IRA at any time, tax and penalty-free.
In a world of uncertainty, you never know when you'll need access to these accounts, whether in an emergency or for early retirement. A Roth IRA can do double duty as an emergency fund and as retirement investing until a separate emergency fund can be established.
Sean recommends reading the article on FItaxguy.com explaining Roth IRA Withdrawl and microlayers.
Backdoor Roth IRAs are for high-income earners who do not qualify for regular Roth IRAs. Roth IRAs are funded with earned income up to an established limit outside of workplace retirement accounts.
Roth IRA limitations for 2021 are a modified adjusted gross income of $198,000-208,000 for married couples and $125,00-140,000 for singles.
For an emergency fund, only contributions that may be withdrawn from a Roth IRA. Over the course of contributing for many years, the balance should have grown, but only the contribution amount may be withdrawn tax and penalty-free.
Roth IRA earnings may be withdrawn tax and penalty-free only if held in the Roth IRA for five years and you are 59 1/2.
Contributions should really only be withdrawn for early retirement or in the event of an extreme emergency, not for minor emergency expenses as the money cannot be put back in.
Sean says the same rule applies to health savings accounts. Leave the money in to grow tax and penalty-free because when you take it out, you stop the growth. Pay out-of-pocket instead and document the expenses to claim in the future when you really need the money. Brad and Jonathan scan their invoices into a Google drive.
For those on the path to FI, unexpected expenses like a stained ankle are unfortunate events, not emergencies because FI puts you in a position of strength with additional options.
This week's book winner is John, who negotiated a $100 per month rent discount by prepaying six months in advance using money saved for a future home down payment. The new location also allows John to bike to work saving on transportation costs.
With this year being so tough for people, Jonathan thought back to an episode with Bradley, who made over $1 million in ten years with Salesforce. Intrigued by the conversation, he contacted Bradley again to see if his success was replicable. As a result, they built a training and job placement program and launched the Talent Stacker podcast.
One of the students in the course was able to land a new job making $70,000 within 42 days of starting the program after being laid off from COVID.
If interested in learning more about the program, visit talent stacker.com/salesforce.

As always, the discussion is general and educational in nature and does not constitute tax, investment, legal, or financial advice with respect to any particular taxpayer. Please consult your own advisors regarding your own unique situation.

Resources Mentioned In Today's Conversation

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272 | Understanding Compound Interest & Investing for Beginners Nov 23, 2020

As the ChooseFI community continues to grow, it's necessary to discuss some fundamental basics that serve the audience who are just getting started, as well as provide a refresher for those who have been on the path for a long time. In this episode, we revisit the magic of compound interest and investing for beginners.
Getting to financial independence where work becomes optional and your investments are producing enough income to live off of for the rest of your life is easier when you understand why saving and investing now is important.
Kimberly asked a question in the ChooseFI Facebook group requesting help understanding compound interest and the basic principles of a compound interest account.
Investopedia states that interest may either be simple or compounded. Simple interest is based on the principal amount. In contrast, compound interest is based on the principal amount plus the interest that accumulates on it every period.
For example, in a simple interest calculation, a deposit of $1,000 earning 10% interest each year would earn $100 in the first year, resulting in a balance of $1,100 in year one, $1,200 in year two, and $1,300 in year three. In a simple interest calculation, the interest percentage is not applied to the interest earned beyond the initial principal.
The real world, however, works on compound interest, which is based on the principal amount and the interest that has accumulated.
Using the same example of $1,000 in principal and 10% interest, after the first year, the balance is the same at $1,100, but in year two, interest is calculated on the new balance, resulting in $110 of interest and a new balance of $1,210 going into year 3. It starts small in the early years but really ramps up later on.
Using simple interest, a $1,000 investment at 10% will have earned $4,500 (45 years x $100), for a total of $5,500.
To illustrate why compound interest is often called the 8th wonder of the world, when using compound interest, that $1,000 investment at 10% grows to $72,890.
The difference becomes even more apparent when using the example of $1,000,000 earning 10% simple interest versus $500,000 earning 10% compound interest. After 45 years, the simple interest balance grows to $5,500,000, while the smaller $500,000 principal grows to $36,500,000 with compound interest.
When you don't spend everything you make and invest in compound interest vehicles, you can be well on your way to becoming a millionaire or multimillionaire.
Einstein has been attributed with saying, “Compound interest is the 8th wonder of the world. He who understands it, earns it…he who doesn't…pays it”.
The benefits of saving and investing are not limited to the end of the 45 year period. There are benefits all along the way. Compounding returns are always working in your favor, creating income that you don't need to work for anymore.
It's rare to earn a high enough income to become wealthy, but saving reasonable amounts of money and investing it can bring wealth in an intermediate amount of time.
Where does a beginner go to start investing and earning compound interest? There's usually no one there to hold our hands and walk us through the process.
Based on a video Brad recorded for The Simple Startup discussion how credit cards aid him while other pay interest on them, one of the students asked how Brad figured out how banking works and not pay interest on his credit cards.
Using a credit card is frictionless for Brad. Not only are there excellent fraud and theft protections when using a credit card, he very rarely has to pay any fees to use it and he also has until the end of the statement close, followed by the statement due date to pay it off, which can be weeks after the purchase was made.
As long as you pay in-time and in-full each month, there are no fees or interest when using a credit card. It is effectively an interest-free loan from the credit card company making it a great tool for those who have their financial life in order.
You don't need to be afraid of credit cards, you just need to understand how they work. Do not get one if you cannot pay your balance on-time and in-full. You can reduce the friction and schedule it to autopay on-time in-full each month.
There are studies that show people who use credit cards tend to spend 12% more on average. That may be true, but it's likely not the same people who understand the power of compound interest. The FI community is focused on increasing our savings rate, paying ourselves first, and buying back our own time.
If you value something spend lavishly on it. If you don't care about something, why are you going to spend your money on

Resources Mentioned In Today's Conversation

ChooseFI's suite of financial calculators
Learn ChooseFI's 3-card cashback strategy and earn $1,000 or more
Get started on your path to financial independence at ChooseFI.com/start

If You Want To Support ChooseFI:

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271 | Future Proof Nov 20, 2020

In a world of uncertainty, how can we future-proof our skillset and also create an environment to help our kids thrive as adults?
Growing up, Brad never thought about entrepreneurship, but as he has gotten more into this FI mindset, the concept has shifted for him and how he is a model and mentor for his girls.
While Brad initially thought virtual learning might not be good, he has reframed it and now believes his daughters will look back on this year as a time when they were living their best life.
Both girls have gone through The Simple Startup workbook, but Molly seemed especially taken to it. After spending a day last week cleaning out one of Brad‘s garden beds in her free time at home, his daughter Molly and her friend have decided they would like to start up a landscaping business.
It may be that you just need to see the framework and behavior model for entrepreneurship. The business idea may not be as important as understanding the framework for building a business as quickly as possible.
Brad sat down with Molly to help her think her way through what it is she is capable of and really wants to offer with her business. Whether or not her gardening endeavor ever takes off is less important than the thought process they worked through which can help her out the next time she has a business idea. Having these conversations with your kids is a great way to connect and future-proof their lives.
While the majority of people in the world will never become entrepreneurs, it's good to start thinking like an entrepreneur and have evidence of what you have skills you have built.
The Simple Startup still has openings for the Winter Challenge. One student from a previous course is 9-year-old Analise, who while hesitant at first, ended up crushing it with her business, Creative Card Designs.
The concept behind Creative Card Designs are fun personalized cards you would want to send to someone to say hello, thank you, or for occasions like birthdays. Analise hand draws each card. She has some designs that can be personalized but also takes design requests. Her business mission statement is: To connect people by making quality, personalized cards for different occasions.
Keeping her business under control, so far Analise has sold two cards. She wants to make it bigger, but sometimes she messes up and burns through her materials just making one card. So she's trying to scale her business by going digital. This will allow the cards to still be personalized, but make it easier on her.
After coming up with the idea, starting the business, and creating different designs, Analise has set up a website for online ordering which goes directly to her Gmail account.
Currently, she's charging about $5 a card and making a $2 profit, but by going digital, it will be easier to make the cards and allow her to possibly drop her prices.
Brad thinks Analise will be able to test out the price for her cards and find the perfect per card price.
Analise's motivation for starting the business was to make money, but also thinks it's good to learn how to take control of your own things and not always have to work for someone else.
Andrea, Analise's mother, says the business has been going well and that her daughter has enjoyed learning and adding to her knowledge base. Andrea appreciates that someone is providing support and guidance when they have these ideas.
Analise didn't go into the class with the card idea in mind. she had several ideas she was torn between and sought feedback from Rob and her classmates before settling on the personalized card business.
Her advice to other budding entrepreneurs is that you have to come up with an idea for something people actually want, as well as something that will be profitable. She says that if you have a business, don't give up too quickly, and you have to work hard at it if you want to be successful.
Analise isn't too afraid of failure. After drawing designs and spending all her money on materials, she realized she needed to just figure out another way.
Andrea says that she's seen her daughter develop a sense of enablement, that she can come up with an idea and watch it grow, and also learning to persist when things aren't always simple or easy.
The Simple Startup instructor, Rob, modeled coming up with solutions to get past obstacles the students encountered. Learning isn't about reciting facts, but learning how to flex your creative muscle and problem-solve to get things done.
Andrea says The Simple Startup Camp was much more of a value proposition than she had expected. Being virtual, it was low-pressure, but also comprehensive and detailed with all the aspects of what's required to run a business. Analise even went through a mind-mapping exercise to assess her strengths, resources, and likes to come with a business idea.
Although some lessons were virtual, Analise was always an active participant. Students in the camp had Rob and each other to reach out to if they were stuck. It was like her very own mastermind group.
Anyone interested in purchasing a card from Creative Card Designs may visit creativecarddesigns.wordpress.com, fill out the Google form, and Analise will get back to you. Payment will be made with Venmo.
Analise is laying the groundwork for success, whether with this business of one in the future. Brad himself started several businesses before reaching some degree of success with Richmond Savers, Travel Miles 101, and finally ChooseFI. He picked up skills and knowledge all along the way.
Since recording the podcast segment with Brad and Jonathan, Analise has gone digital, contacts more people, and doubled her orders.
There's no fear of failure. It's iterative and failing forward. Once put into practice, all of the skills learned along the way while building a business become demonstrated skills for college and job applications.
Adding skill to your talent stack and thinking like an entrepreneur is something that the FI community does well. Brad loves being able to read listener emails, like the one from Laura who found ChooseFI episode 265 Talent Stacker, really resonated with her. Because of Jonathan‘s story, she now realizes that she isn't stuck working as a veterinarian forever and can find something else that lights her fire.
Many professionals like Jonathan and Laura took out six figures of student loan debt only to find that it wasn't a fair exchange. Getting rid of the student loan debt is tough, but it's the right choice. It will give you options.
While Jonathan can point to a lost decade in his life that he spent in pharmacy school, it's an intellectual exercise. There was an opportunity cost, but there are no sunk costs anymore.
Jonathan recently found a website and associated app called Supercook which allows you to save money by shopping your cabinets. After completing an inventory of your cabinets, the website will find recipes you can make by only adding a few ingredients. How much money could you save using up what you already have on hand? Reach out to feedback@choosefi.com and let us know the results.
It's been a tough year for the ChooseFI local groups, but some are still meeting virtually or for socially distanced activities, like hikes. David wrote in saying Brisbane, Australia just has its first meetup.
2021 is bringing better things and we are coming back. ChooseFI is looking to do a grand meet up at a conference next Fall called The Unstuck Project. The date is still to be determined.
This week's FI Weekly winners are Josh, Sheena, and Hayden. After finding the podcast this summer. since April, they have turned their garage into a guest house and listed it on Airbnb, bought an investment property, contributed all of his wife's income to her 401K, began contributing to an IRA, opened an M1 Finance account, opened a Roth IRA for their son, are closing on a second investment property soon, and opened a Chase Sapphire Preferred card.

Resources Mentioned In Today's Conversation

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.

270 | Designing your Year for 2021 | Dominick Quartuccio Nov 16, 2020

One of ChooseFI's most popular guests is back! Dominick Quartuccio returns to talk about after the shock of 2020, how to bounce back and what it looks like to design your life for next year.
Brad's relationship with Dominick goes back to when they were in college together. After reconnecting several years ago, Dominick has become a source of inspiration and a mentor to Brad.
In previous episodes, conversations with Dominick have centered around the idea of drift. It's the state of existence where we think we're making intentional decisions with our lives, but in reality, it is habits, patterns, unconscious beliefs, expectations, societal pressures, etc. that are really driving decisions.
It's only when an outside force, normally a quite dramatic one, forces itself upon us that we wake up from that state of drift.
For the first time in human history, the entire world is going through an experience together. It's caused everyone some sort of pain, whether it was losing a loved one, a financial loss, or anxiety.
Most of us have gone through periods of suffering in the past that when we look back on them, those were the moments that made us into the person we are today, and given the choice, we wouldn't change them today.
Instead of wishing to speed up 2020 and get it over with, Dominick encourages us to pause and look at the past year to see where you've been and highlight the standout moments. The purpose of this exercise is so that we can envision a 2021 that has the potential to be the most meaningful, fulfilling, and prosperous year of our lives.
In his role as a leaser, Dominick has seen behind the curtain of people's personal lives and noticed a distinct difference between those who have an inner foundation of work leading up to the pandemic and those who have never done the work. Fortifying your inner foundation allows you to be strong and thrive if there are tougher times in the year ahead.
There are two parts to the exercise of designing the next year of your life: looking back at the year you just had and looking forward to creating the year that you want.
Dominick places inner work underneath the umbrella of personal development. Where personal development could be an external skill to better yourself, such as reading a book to learn a new skill that can be applied in the real world, inner work is oriented inward, like examining what lights you up.
When the conditions of the outside world change, when you've done the inner work, you don't feel shaken and you are standing on something stable.
We've experienced more emotional turmoil in the last year than any other, making it worthy of introspection.
In the last year, what were some of the standout moments, both the highs and the lows, beginnings and endings, new and lost relationships or jobs, and the trials and tribulations?
Start with going back and looking at your calendar. Looking at it will trigger memories of travel or meetings. Next, go through the photos you've taken. There may be some real standout moments you've forgotten recorded on your phone. Finally, review your journal or scroll through any notes you've taken to see what you were thinking, seeing, and what your attitude was.
After looking back, begin looking for themes. Was it bringing your life back into balance, loss, finding love?
This year Jonathan and his wife got on the same page of their work-life relationship and she's embraced the idea of building her talent stack which has helped them have a common direction in their marriage. COVID has allowed Jonathan to watch his kids as they grow and evolve into different people every week. He has also lost 20-30 pounds, winning a bet he made with himself on Healthy Wage. He embraced the idea of community and is doing weekly calls with his father and JD Roth. He watched the income for his business take a nosedive and then recover from working to build new lines of revenue. He also built two new businesses using skills acquired in the last four years. He says it was his best year ever.
Dominick posed the question to Jonathan about how he would've handled the same downturn to his business if it had occurred three years ago. Jonathan said he's a completely different person now and doesn't know how he would have interacted with who he was three years ago. This year has proven he has grit, determination, and gets stronger during times of trouble.
For Brad, he and his family did CrossFit together five days a week for months. His theme is togetherness and it wasn't limited to his immediate family. The mastermind group he belongs to with Dominick was part of it. He's also been able to see his parents more this year and had the time to spend talking with his daughter who was experiencing anxiety and trying to work her way through it.
Brad thinks what was important about this year was being able to see the hard work of parenting come to fruition. Dominick mentions that during a normal year, these moments speed by. The pandemic has forced us to slow down and meet these moments. But when things start to speed back up again, are we going to fall back into these old habits, or are we going to pause and be there for these moments?
Our brains are hardwired to keep us safe, but many times the anxiety and creation of negative hypotheticals are not serving us. Realizing them helped both Brad and his daughter.
The pandemic has shined a light on mental health. What did you learn about your own mental health this year?
Additional questions to ponder are these. What milestones of FI did you experience this year? What relationship emerged as the most important this year? What did you discover about your physical well-being?
One last question to consider is what is something you would like to leave behind in this year? An emotion, a belief system, a recurring complaint?
Jonathan would like to leave behind the hours he spends that aren't helping to move him forward or bring him joy, like watching Netflix and scrolling through social media, but the thinks being productive 16 hours a day isn't the goal. Moderation may be his goal for 2021.
Next, what are some things you want to carry forward with you into the next year? A sense of inner peace, togetherness, clarity? Give yourself space to think about it.
What is an area of your life that is ready for the next big level up? Start by writing down many of the areas ready for a level up. after coming up with a list of 5-15, look for the one that really jumps out at you. Use this terrible year to springboard into the best year of your life.
Courage is Dominick‘s theme for the next year as he works to figure out how to get out there and help more men live their fullest potential.
This goal for next year does not need to world-changing, just meaningful, and something that inspires you to see what you are capable of.
Brad knows that being present is an area he could work on and he could put separation in place to make that easier and make his life better.
Napoleon Hill states in his work that the number one step in creating any meaningful change is to build a burning desire.
What's the one decision that you could make that would allow you to be focused 365 days a year on that burning desire?
Dominick will be holding a The Great Man Within 90 minute interactive webinar on Dec 16th for designing the next year of your life and in January, a free 30 day men's mental health challenge. To register for either, visit The Great Man Within.

Resources Mentioned In Today's Conversation

ChooseFI Episode 185 Adapting to the New Normal
Register for The Simple Startup Winter Challenge and get 15% with the code Podcast
Check out ChooseFI's review of the Chase Freedom Flex
Open high-yield savings account with CIT Bank
Get started on your path to financial independence at ChooseFI.com/start

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.

269 | Let's make Lemonade with a Twist Nov 13, 2020

ChooseFI Facebook Community Manager recently posted a meme that hit home with Brad. It said, “Plot twist: 2020 has actually been the best year of your life. You faced challenge after challenge, you've adapted, and you've overcome. 2020 has forced you to grow exponentially. Don't take that for granted.“
2020 had been Jonathan's best year ever. Instead of giving in to fear, doubt, and insecurity, he decided to lean in. By being more intentional with the things that were important to him, like his health, Jonathan has lost 20 to 30 pounds and is in the best shape of his life.
Jonathan also sought to build his personal talent stack and built two new businesses. He is feeling more agency and is more fulfilled than at any other point in his life.
Previously, Jonathan‘s beliefs about himself were all based on external validation. But as he began to get more freedom and autonomy in his life, he began to question those beliefs and reclaim his identity statement.
Learning that things such as student loan debt is good debt and you'll have to work until retirement age, just aren't true allowed him the space to challenge the status quo in other areas of his life.
Initially, he even questioned whether the success of ChooseFI was the result of a random lightning strike of luck. However, he's taken his interest-led learning and skills he's learned, applied them to two new business models, and achieved success with them.
The interest-led learning Brad and Jonathan frequently discuss on the show helped Jonathan lean in March, and it also lead Brad‘s eight-year-old daughter, Molly, to learn how to cook a perfect pan-seared chicken breast just like Gordon Ramsay.
The things you believe about yourself become part of your identity statement. But you can turn the limiting beliefs around and say that you're the type of person who can learn anything. It may be just a Google or YouTube search away.
You can reframe your identity by asking yourself what you want it to be.
Though she isn't running now at nine months pregnant, part of MK's identity is that she is a runner. However, in high school, she was the slowest person on the team. She thought she couldn't do what the other's on the team were doing, but her coach didn't have the word “can't” in his vocabulary. His mindset is something she has carried through to other areas of her life.
MK challenges you to take the word “can't” out of your vocabulary too because once you aren't allowed to use it, your mindset will shift and you can begin to redefine who you are.
A case in point for the power of working to get 1% better was in the news last weekend when Chris Nikic became the first person with Down Syndrome to complete a grueling Ironman triathlon. Emblazoned across his shirt was his training mantra, “1% Better”.
You can make a choice every day to live your life a little bit better and when your finances are in orders, everything else gets a little bit easier. You make the choice not to deprive yourself by saving money, to empower yourself, and put yourself in a position where you have the freedom to think about all the other things that truly matter, like health, relationships, and spending time how you see fit.
While it's about making a choice, if you don't get up off the couch and take action, nothing is going to get better.
If you have a question you'd like to have answered on the show, submit them by going to ChooseFI.com/voicemail. Or reply to Brad's weekly email, The FI Weekly. Get on the list by going to ChooseFI.com/start.
The first mailbag question this week comes from Sara who wants to know how to master financial independence when you don't have a 401K. Sara has been working through the podcasts and read, ChooseFI: Your Blueprint for Financial Independence, but her husband is a bartender and doesn't have a 401K.
W-2 employees without access to a 401K could consider being an advocate and talking with their employer about getting a 401K like Waffles on Wednesday talked about when they were on the show. Just giving employees access to a 401K does not have to be cost-prohibitive and can be a win for both owners and employees of small businesses.
It's important to remember there are no rules to FI. Just because others are talking about maxing out their 401K and then doing a Roth conversion ladder, doesn't mean that's what you have to do. Brad admits it wasn't until the last two years at his job before he maxed out his 401K contributions.
The path to financial independence does not depend on a 401K. It's predicated on savings rate. The goal is to save that in the most-advantaged way possible. Between marginal tax brackets and child tax credits, it may be fie just putting money into a Roth IRA, which has a $6,000 limit this year.
If you have your own side hustle, you have options for retirement accounts, like a SEP IRA or solo 401K. A SEP IRA is easy to set up through any major online brokerage firm and put in roughly 20% of your income. There are potentially even higher thresholds for solo 401Ks when contributing as the employee and employer.
The next question is from Conner who wants to know how best to allocate his 25% savings rate between a 410K, Roth, IRA, and savings account.
The purpose of saving money isn't only for retirement. Save for life and having options.
Brad thinks Conner is doing a fantastic job saving and while it would be easy to say “put it in the 401K”, having all of his net worth in tax-deferred vehicles may not be the best physiologically. Rather than stick it in a savings account, he could invest in the stock market with a brokerage outside of a retirement account.
As much as Jonathan loves Vanguard, it's not the easiest brokerage to open an account with. In comparison, Fidelity is much easier and still provides access to low-cost broad-based index funds.
An upcoming episode will feature Sean Mullaney to review in-depth 401Ks and Roth IRAs. One of the major differences between the two is that contributions to a Roth IRA may be withdrawn tax and penalty-free, which can act like an emergency fund.
Join us and share your wins! This year ChooseFI will be holding a LIVE year-end wins episode on December 8th at 7:30 pm Eastern simulcast on Facebook and YouTube. It will be replayed as the final podcast episode of the year. Subscribe to get a reminder at ChooseFI.com/2020wins.
For a chance to win a book from ChooseFI Publishing, share your wins by replying to Brad's weekly newsletter. This week's first winner is Cory, who as of last week caught up on all episodes of the podcast after two and a half years of listening. After implementing many of the actionable tips and set Cory is set up for financial success and went from a negative net worth to hitting over $100,000 at the beginning of October.
The second winner this week is Jo. Jo and her husband found ChooseFI while she was on maternity leave earlier this year. During that time they refinanced their mortgage, getting a better rate and eliminating PMI, canceled subscriptions, lowered their cell phone and car insurance bills, enrolled in Sofia.org course for Jo's remaining college electives, was promoted at work and negotiated a substantial raise, will max out 403bs, and opened a non-retirement brokerage account. Also, while focusing on their health, Jo lost 70 pounds and her husband lost 40.
Jonathan won his weight loss challenge with Healthywage.com and received a check for $2,419.67! Set a bet for yourself by going to ChooseFI.com/healthywage.

Resources Mentioned In Today's Conversation

Purchase a ChooseFI Publishing ebook bundle and get an extra 15% off with code Holiday15
ChooseFI Episode 094 Solo 401K versus SEP with Waffles on Wednesday
ChooseFI Episode 155R Year End Tax Planning with Sean Mullaney
Easily shop for and compare life insurance with PolicyGenius
Learn ChooseFI's 3-card cashback strategy and earn $1,000 or more
Get started on your path to financial independence at ChooseFI.com/start

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.
Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.

268 | We Want Guac | Financial Independence for Gen Z Nov 09, 2020

Optimize your finances during your 20s, no matter what your income is, and build significant wealth. But what are your options when working an entry-level job when you have a large amount of student loan debt?
Amy's first job out of college was an entry-level position earning $30,000. By the age of 25 had a $100,000 net worth and has tripled her salary in the last few years by learning how to market herself.
The average cost of a four-year college degree in 2019 is $122,000. Amy was fortunate that her parents paid for college and she graduated with degrees in Communications and International Relations without any student loan debt.
She graduated without any job offers and her only source of income came from waitressing which wasn't enough to live in Boston on. After a couple of months, she contacted a temp agency and got a job earning $15 an hour.
Nearing the end of college, she saw that recent graduates weren't getting the jobs they had hoped to get. She calls that time her “Year of Fear” because she didn't have much in savings and terrified of what was going to happen. For the rest of the year, she continued to work full time at her temp job and waitressing on the weekends.
With the benefit of hindsight, she realizes she has an average amount of skills as anyone else coming out of college, which is inadequate for the realities of today.
The ultimate goal of going to college is to graduate and get a well-paying job. But the focus is on grades and prerequisites, not how to find mentors, write a resume that resonates with people, or navigate the application process to get the jobs you actually want. The way the job application process works now is broken
While there may not have been any skill Amy believes would have initially made landing a job easier, it would have helped to find people who agreed to meet and interview her in the first place.
After submitting resume after resume to company websites and since times out of ten hearing nothing, Amy emphasizes flipping the script and having the companies and recruiters come to you.
Amy was able to go from $30,000 to $93,000 a year by learning how to market herself on LinkedIn so that people found her.
What makes you stand out and how can you improve your chances?
The first step is to decide what it is that you want. If you are marketing to everybody, then you are marketing to nobody.
Next, start looking at the job positions and titles that you want, study the job applications for those positions, the job requirements, descriptions, and language used.
Using that verbiage in your resume or LinkedIn profile allows hiring managers to see that you are perfect for the role and HR departments who use algorithms to narrow down the prospects, which relies on keywords that your resume or profile will likely also have.
It can be difficult to figure out what you want at the age of 20. Amy chose a degree in Communications because it could apply to almost anything she wanted. Though she says to figure out what it is you want, figuring out what you want for just the next couple of years is fine. You can always pivot, but you just need a direction for your resume.
Employers don't generally look for someone well-rounded, instead, they are looking to fill a specific need. Show you can fill that need and you're more likely to be hired.
The salary increase she received for her second job out of college was pushed by the recruiter Amy was working with who found her on LinkedIn.
Amy continued to use the same tactics with her next move but added in extras that may not have been relevant, like her HTML skills. That one change opened the door with recruiters looking for marketers who also understood coding. Landing that job bumped her salary up to $86,000.
Answering the question, “What do you do?”, always results in a simple answer, like Marketing, not what you actually do or what skills you possess.
When helping out a friend earlier this year with his resume, Amy noticed that the skills section of his resume didn't speak directly to his particular skill set for the jobs he wanted.
You don't have to be world-class at anything, but with the right variety of skills, you can stand out because there are fewer people who have that intersection of skills.
Earlier this year, Amy started her blog, We Want Guac, after looking at different finance blogs while trying to figure out what to do with her new and higher salary. Building the blog has continued to add to her talent stack.
Amy says that in 2016 she was the ultimate cheapskate, attending events to take advantage of the free food, and ordering small items when eating out with friends. The salary increases enabled a shift in mindset from deprivation to one of abundance.
Part of her mindset shift came out of creating a budget. Her budget didn't mean restricting herself from spending. Instead, the numbers showed her the limits could be more than she expected and it would be okay if she did spend more. It gave her permission to spend more on herself, leave more in tips, and give to charity.
Like the saying by Jocko Willink, discipline equals freedom. Amy's budget was the discipline that gave her the freedom to see her limits could be bigger and move beyond the mindset of scarcity.
The goal of We Want Guac is to help people better understand how to manage their money.
When doing the math, Amy calculated that a 25-year-old with $65,000 invested in an index fund can retire with $1,000,000 at the age of 65 without ever investing another penny. With a net worth of $100,000, she figured she could retire at 50, and if she continued to save, she could retire in her 40s or even her 30s.
Amys says having $100,000 saved in your 20s makes an incredible difference. It is five figures of investment growth during bull markets and it is security in downturns.

Resources Mentioned In Today's Conversation

Get a discount on ChooseFI ebook bundle get and additional 15% off with code Holiday15
Register for The Simple Startup Winter Challenge and get 15% with the code Podcast
ChooseFI Episode 121R How to Get Any Job
Get started on your path to financial independence at ChooseFI.com/start

If You Want To Support ChooseFI:

Earn $1,000 in cashback with ChooseFI's 3-card credit card strategy.
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267 | Timing the Market Nov 06, 2020

Following US Election Day results, it's important to remember the alligators and kittens, a concept to approach overall mental wellbeing. The negative influences in life are alligators and all of the things that make life better are kittens. Focus on getting rid of the alligators.
It's a human bias to focus on the negative. How do you focus time and attention on the things that make life better? For Brad, he cut watching the news out of his life which has helped him to achieve a better mental framework for life.
The business model of the new is to keep you watching through the next commercial break. They cause anxiety. You can stay informed without being a part of that model.
Control what you can control and you will be in a better financial position four years from now regardless of the election outcome. There is so much outside of our control right now and worrying about it isn't productive.
Despite the number of people who are confident they know what will happen to the stock market as a result of the election, the fact is that we just don't know.
Market uncertainty is one of the reasons to have a plan for your money regardless of what is going on and automate it. Not only is it difficult to try and time the market, but you need to get it right twice, both when you buy and when you sell.
The FI community is about long-term thinking. It's not about quarterly earnings or even five-year trends, but performance over multiple decades and the decisions that will help get you to the wealthiest point over that time period.
With that long-term thinking in mind and in a time of calm, it's a great time to write down your investor policy statement. Having a plan for your investments, written down in an investor policy statement helps you to avoid being reactionary or make rash decisions.
In February, the Dow hit a high of 29,500. By March 20th, it had dropped 20-30% and many predicted it would go even lower. Defying the dire predictions, the Dow recovered 30-40% of its gains within a few months.
The problem with making market predictions is that there are far too many variables for you to account for and again, you have to get it right twice. Even the professions are wrong 50% of the time. What chance do you have of making your investment decisions around emotion enough to stay solvent or long-term or outperform the market over the long-term? Essentially no chance.
The highest likelihood of long-term financial success is to control the expenses on your investments. Low-cost index funds are going to be your best bet.
Following your investor policy statement and injecting new money when you can benefits you with dollar-cost averaging. Time in the market is much more powerful than timing the market.
ChooseFI listeners are creating space and making progress in their lives. Patty commuted to paying off debt within five years and just made her last payment, including more than $40,000 in credit card debt.
Joe replied to Brad's email, The FI Weekly, Joe shared that he and his wife transferred his 403(b) from a high-fee broker to Vanguard and also started on their journey to earning travel rewards by opening a Chase Sapphire Preferred card.
November 8th is the LAST CALL to apply for the Chase Sapphire Preferred card with its highest-ever bonus of 80,000 Ultimate Rewards points after spending $4,000 in the first three months. For more info, go to ChooseFI.com/CSP.
Teachers are primarily the ones using 403(b)s, most of which are laden with really high fees and very few options. ChooseFI plans to have an episode in the coming months with Dan Otter discussing doing better with your 403(b).
Crystal sent in a message saying that she had no idea about fees and was investing with Edward Jones. Her investments hadn't done much over the last five years and now she's educating herself, but the fees appear to be hidden.
Since the market has done so well over that last five years, the reasons why Crystal hasn't made money are because she wasn't invested in a strategy that allowed her to keep up with the market or she was getting crushed by the fees.
Brad says finding the expenses for his old company's 401k options was relatively easy. Included in the table of investment options, one of the columns listed expenses. Other titles may be expense ratio or expense percentage. The numbers may range from 1.50 to 0.03.
Without a nicely organized table, you may need to look up the expense ratio by looking up the ticker symbol.
A low-cost index fund investment strategy is simple and not complex enough to require help from a professional. In contrast, a complex investment plan is probably costing you a lot of money.
With an actively-managed fund, a person, or team of people, are making decisions on what to buy and when to sell. Through the fees, you end up paying them for their time. And then the data shows that they aren't even keeping up with the market.
The difference between expense ratios of 0.1% and 1.0% is tens of thousands to millions of dollars over time after compounding.
Brad ran through a scenario originally published to RichmondSavers.com reviewing the impact fees have on an investment portfolio over a 40-year timeframe. The result was that a high expense ratio and advisor fees cut the potential net worth in half.
Even target-date funds may not get the returns you expect because they are too conservative for you.
It's good to think about what you are invested in and how much it is costing you.
ChooseFI's new website is now live! Check it out at ChooseFI.com or ChooseFI.com/start. There are still some issues to be fixed, but if you are having trouble finding anything let us know and send us your feedback to feedback@choosefi.com.
The feedback on The Simple Startup classes has been overwhelmingly positive. Kids aged 10-18 have been getting off the video games and acquiring new skillsets to future-proof their lives.
Rob Phelan has figured out how to offer the course year-round and the next session starting January 18th is open for enrollment. Registration will be open until January 8th or until it sells out. Previous sessions have always sold out.
Register at ChooseFI/startup for The Simple Startup between now and November 15th and save $10. Use promo code “podcast” and save another 15%.
Share what you are doing and how your life has changed by replying to Brad's email newsletter, The FI Weekly, and have the chance to win one of the books from ChooseFI Publishing. Sign up at ChooseFI.com/start.
Christian Choosefi'd his view of the pandemic. He's focused on the positive things, like spending more time with his family, time to exercise, eating healthier, and saving $4,500 this year.

Resources Mentioned In Today's Conversation

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266 | Breaking the Cycle of Poverty | Yanely Espinal Nov 02, 2020

Yanely grew up in a low-income household in Brooklyn and then attended Brown University. But by the time she graduated, she had accumulated a bunch of credit card debt that she was hiding from her family.
She tried to figure out dealing with her debt on her own by reading books, listening to podcasts, and watching YouTube videos. After paying it off, she thought it was ridiculous she had never learned it in school and started her own YouTube channel to share her story. That eventually led to her landing the perfect job and a solid career path.
Growing up, there wasn't a lot of money in Yanely's household, so there weren't many conversations about money either. When there was talk about money, it was always negative and caused tension.
One thing that her father did teach her was to never have a loan or owe debt to a friend or family member and that she needed to always pay them back. Interestingly, that sense of obligation did not transfer over to institutional borrowing which she believes is a common mindset in neighborhoods like the one where she grew up.
When Yanely was accepted to Brown University, she had no idea how expensive it was going to be. Although she received a full scholarship, she discovered she still need to purchase things such as textbooks, a laptop, and other supplies. Because her father taught her not to borrow money from anyone, she wanted to figure it out on her own and applied for her first credit card.
She attributes her attempt to be resourceful using credit cards to a lack of financial literacy. She thought she was doing the right thing and on the right path at the time.
Her payment history was good since always made the minimum payment and never missed a payment on her credit cards, but her credit utilization was high as she was always close to maxing out her card limits.
With each credit card application, banks continued to give her credit cards with higher and higher credit card limits. Trying to keep up with the rich kid lifestyles of her classmates ended up getting her $15,000 in debt.
Moving from a neighborhood filled with Caribbean immigrants to an elite university was a culture shock. Yanely felt like she didn't fit in because she didn't talk or act like her fellow students. Not understanding expressions and phrases others used made her feel dumb.
Going from a top performing student in high school to feeling like being in the wrong pack may be part of the reason why it's physiologically difficult for low-income who attend prestigious universities.
Yanely says the biggest thing a low-income student can do is expose themselves to the rigorous language and vocabulary that is going to be expected of you. Students are often not prepared for how much harder they will need to work, it ends up being a shock, and they go home.
Approximately 2/3 of her credit card debt came from spending on just trying to keep up with her fellow students. Although there was no overt peer pressure, it was unspoken.
Straight A's and scholarships are not enough. Students like Yanely need to have both academic and social grit to survive in an environment that is not in their comfort zone.
Reading The Millionaire Nextdoor to help her figure out how to pay off the debt, she noticed the descriptions of poverty and generational poverty were describing the life she was living. She decided she was going to be the one to shift the trajectory of her family in terms of wealth.
Yanely had a choice to make between continuing a pursuit to fit in and look good while racking up debt, or the alternate route of smashing her debt aggressively and begin to build wealth, breaking he cycle of poverty.
The interviews of people who didn't come from wealth surprised her, opened her eyes, and completely shifted her mindset. She realized she was going to need to completely wipe her mental slate clean and start with new and fresh beliefs about money and how it works.
Thomas J. Stanley and William D. Danko, authors of The Millionaire Nextdoor devised a formula for determining if you are as wealthy as you should be. That formula is: Your Age multiplied by Your Annual Income (from all sources except inheritance) divided by 10 = Your Expected Net Worth
Growing up in a neighborhood where spending to reflect success and social status was prevalent, Yanely understands the pressure and had never imagined there was a different route.
Her beliefs were shaken to the core listening to interviews of self-made millionaires answer questions and discuss the strategic money decisions they made with a clear goal in mind. It opened her mind and made Yanely want to explore more.
Despite FI not even being in her purview a handful of years ago, Yanely just hit Coast FI after beginning to maximize everything she was doing with her investments and prioritizing tax-efficient investments before even paying her rent.
Yanely paid herself first. After learning more about 403bs, she determined her priority should be a Roth IRA. She then invested as much as she could to qualify for the company 401k match. Whatever was left after the investments was used to pay for living expenses like rent and food, and has cut down on her fun money budget.
Being obsessed and hungry for knowledge helped Yanely pick up personal finance lessons so quickly and go from being in credit card debt to maximizing her investments. Her goal was to learn everything she could and begin producing a result in 90 days.
She feels that there is an injustice that these things were never taught in her community, her family, or even at her Ivy League school.
Previously, she would have asked an expert or others for advice and take it. she no longer believes that is a good strategy for solving her problems. She thinks you need to question the experts' motivations and do your own research. This is especially true with investing.
Her goal with Coast FI was to invest enough that she's be a millionaire by the age of 65 even if she had never invested another dollar again. that meant she needed to hit $250,000.
Initially, Yanely's goal was to be an agent of change for herself. Now she wants to be an agent of change for others through her YouTube channel where she cold share her story.
As a teacher, she realized that teachers were also never taught about personal finance in school. Teachers teach students about all kinds of topics, but not about money. Financial literacy is lacking and being passed down from generation to generation.
An organization reached out to her to come on their podcast where they talk with teachers about money and personal finance to help give them the knowledge and skills to teach it in the classroom. She is know on staff doing educational outreach.
She says her impact through coaching or her YouTube Channel is limited, but seating change in the education system and reforming the way students are learning in school is the kind of change she is after.

Resources Mentioned In Today's Conversation

Get a discount on ChooseFI ebook bundles using the code Holiday15
Register for The Simple Startup Winter Challenge and get 15% using code Podcast
Easily find coupon codes and save money when you join Honey
Get started on your path to financial independence at ChooseFI.com/start

If You Want To Support ChooseFI:

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Share FI by sending a friend ChooseFI: Your Blueprint to Financial Independence.

265 | Talent Stacker Oct 30, 2020

What's in your talent stack? Inspired by content discovered over the last four years while producing ChooseFI, Jonathan has spent the last couple of months hard at work on the side on a new passion project.
As said many times here on the show, financial independence isn't about doing less, like sitting on a beach sipping cocktails. It's about aligning your what you value with your life and having the freedom to pursue what you are passionate about.
ChooseFI has given Jonathan the opportunity to look at and do better with his personal finances, but it's also helped him realize that he loves to work hard, but not necessarily for a paycheck. He'll work twice as hard when it aligns with his interests, passions, autonomy, mastery, and purpose.
While Jonathan has not reached FI, he does have all the benefits of it. FI is not binary because the benefits of FI start accruing from Day one.
Time is your precious non-retable resource. You can stick your head in the sand and gut things out until reaching FI, or look around and see what other options we can create for ourselves that bring more joy, autonomy, mastery, and purpose.
When you find that your ladder is leaning up against the wrong wall, you don't need to stick it to that commitment and grind it out for another 20 years. You don't need to wait for anyone to give you permission. You can pivot.
One of the better messages to come out of the FI movement is that no matter what has happened, huge student loans, disastrous real estate deals drug addiction, or divorce, you can always move forward and make your life better.
A life optimization strategy begins with financial security and gives you space for mastery and exploring new things.
You don't need to be in the top 1% of anything. Just being better than average at a bunch of different things will open up opportunities. What does a high value, high return on investment, talent stack look like?
Students coming out of college are ill-prepared for the way the world really works. The world wants to know what have you done and what can you do for it. What if you were to focus on the skills the world wants and is willing to pay a high salary for? And then very economically earn certificates stating that you can do this work? You can retain and earn these skills in a year or less.
There are very few jobs that actually require a college degree. Through certificate programs, you can get jobs earning between $60,000 and $160,000 a year. Jonathan says if he were starting over, knowing what he knows now, this is what he would do.
Jonathan has started another podcast, the Talent Stacker podcast. It's not for those set on going to college. It's for people looking to see what other choices are out there or who are unhappy with the choices they previously made and are looking for something different and don't have another four years to earn a degree.
The Talent Stacker podcast does not just regurgitate information learned on previous ChooseFI podcast episodes. It helps you recreate what these other people have done step-by-step.
The framework of the Talent Stacker podcast is based on a handful of different categories. The first is a time for money or a service role where you trade an hour of work doing something for a set hourly rate.
The second category is sales, where you help make it easier for a current audience or customer base to make a purchase.
Category three is marketing or expanding the current customer base.
The fourth category is team development or leadership or bringing a team together to focus on target goals.
The fifth category is systems, process, and workflow, helping teams to work more efficiently.
In reality, many of these categories have overlap. If you can do a little bit of several of these, you can become what is called a Rainmaker.
Jonathan recognizes how each of these skills has been used and added to his talent stack through the ChooseFI podcast.
Building a talent stack is not just limited to business owners. It's a mindset about learning new things and how they can help make you a better person.
Brad used his skills as a travel rewards enthusiast, along with his business-building skills and CPA degree to build a travel rewards coaching service.
MK found success in her corporate career through choices like learning basic HTML to build her talent stack, which helped her to climb the ranks, and then eventually launch her own business. Her pregnancy has caused her to look at streamlining things and becoming more efficient to keep her passive income stream growing.
Your real education doesn't start until you get the job. College merely proves to an employer that you know how to learn.
Jonathan worked with Bradley Rice from Episode 117 to create an actual career development program in Customer Relationship Management (CRM) that you can replicate in six months and make $60,000-80,000 a year, with a path to making $200,000 in 3-5 years.
With four years of starting ChooseFI, Jonathan has become one of the top independent podcasters and now he teaches podcasting to others.
With ChooseFI, the goal is to compel you to take action toward reaching financial independence. with Talent Stacker, Jonathan wants to see you develop skills and maybe earn more.
This week's FI Wins of the Week include Karen. She and her husband decided to invest in camping gear and enjoy camping in Florida before they reach FI and can move to Washington State.
The second winner is Emma who is 20 and just fully funder her Roth IRA for 2020 and is ready to fully fund 2021 in January.

RESOURCES MENTIONED IN TODAY'S CONVERSATION

Learn about all the benefits of the Chase Freedom Flex credit card
Open a high-yield savings account with CIT Bank
How to Fail at Everything and Still Win Big: Kind of the Story of My Lifeby Scott Adams
ChooseFI Episode 117 Making the Case for Part Time With Bradley Rice
To get your copy of the FI Weekly every Tuesday, sign up at ChooseFI.com/start

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264 | Recognizing Scarcity and Uncertainty | Leisa Peterson Oct 26, 2020

Your money story informs so much of your life even if you're not aware of it. For 30 years, Leisa Peterson has been researching and studying how trauma in early life contributes to the money challenges faced later in life.
Growing up with a scarcity mindset, money became an escape that gave her motivation. Leisa decided in her mid-twenties that she was going to have money in her life and not have any stresses about it as her parents did. Earning money became an all-consuming response to the trauma she had experienced.
There's a very broad spectrum of trauma from mild to quite serious and not everyone reacts to it in the same way. Some people like Leisa may end up wanting a lot of money, while others are lead to feeling like they have no control over money.
An adverse childhood study from Kaiser was intended to understand how childhood trauma affected health. In Leisa's reading of the study, she found one of the findings included financial problems and realized this was something not a lot of people were talking about.
These childhood experiences become very disruptive, brings an uncertainty to how life is viewed and crushed the sense of self.
The concept of scarcity and uncertainty go together. This leads to struggling with either an extreme need to control or feeling out of control with money.
Because kids are absorbing everything we say, it's important to change the language we use around money.
When people become more familiar with their trauma backstory, they are better able to talk with their partner about their money challenges.
Disconnects in communication can occur when each other's backstories are quite different. We can only know what we know from our own perspective. The job in relationships is not just to understand ourselves, but to see the other person and how they are approaching money differently because of their backstory.
When people think of something as being scare in supply, they are going to buy more of it. Toilet paper is a relevant example of this for 2020. Someone coming from a home without enough money may have strange buying behaviors. Their idea of scarcity or uncertainty may be showing up in their daily behaviors with money.
For spouses or partners who have different money stories, Leisa encourages them to just start somewhere. Think about how money was treated at home growing up and have a conversation about it.
Questions to consider asking are: Did mom and dad talk about money? Did mom and dad fight about money? What is your first memory of money? When did you make your first money? How did that make you feel? Were you afraid?
It can be difficult to have these conversations for the first time with another person. Journaling is a way to privately have them with yourself first. The first person you share these feelings with should be someone you trust and it may be someone other than your partner.
Throughout her career, Leisa has found that people react to money very differently. The majority either hold it tightly or avoid control of it altogether, with a minority viewing it as a tool and are at peace with it.
Having one strong fire in your life influences the way you think about money in life. The earlier the influence in life, the better.
Parents sometimes joke or convey the wrong message about money. Leisa says it's important to go back and close the loop with children.
In the FI community, we want our children to have the skills to take care of themselves and be financially independent, but is it possible for them to have too much abundance? Leisa says she wants to be very open about what goes on in their home, discuss their failures, and teach them the value of money and hard work.
After reaching her goal of becoming a millionaire, Leisa made a massive change in her life. She and her husband sold it all and took a year off to travel with their son. The trip changed their entire approach to life.
Previously, Leisa's family had been consumers of their money. After the trip, they took their nest egg, created investments where their money began working for them.
A result of Leisa's drive to become a millionaire was that once achieved, people began to treat her differently. The outward display of wealth began to affect her friendships. It was then that Leisa realized the money was not all that important to her.
Leisa's book, The Mindful Millionaire, tells these stories about our money experiences, our relationships with money, and how we can transform them into thinking about money as a tool.
The key takeaway from this conversation is that words matter. It's important to think about the unintended consequences of the conversations we are having with our spouses, partners, and kids. Have humility in these conversations and be honest.

RESOURCES MENTIONED IN TODAY'S CONVERSATION

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263 | Pick Your Five: Accountability & Decision-Making Oct 23, 2020

Jonathan draws a parallel between the episode on Monday with professional poker player Annie Duke and hitting his weight loss goals. Finding himself well over his desired weight, Jonathan took a health challenge and has kept the weight off for six months making him a weightloss statistical abnormality.
Where most people diet and get to a goal weight, because the effort was a diet, they end up regaining the weight. What Jonathan did was make a lifestyle change.
Tying to the discussion with Annie Duke, Jonathan recognized that he couldn't control everything, made better decisions, and set himself up for more opportunities. All of it helped to increase the opportunity for luck to strike.
Jonathan isn't alone in his endeavor. Through weekly accountability phone calls with his father and FI community member, JD Roth, they check in to ask if each has followed through with their goals for the week
Their goals aren't all that strict but they are trying to be 1% more intentional with their decisions and look at their decision-making framework, watching for triggers, giving into them less often, and coming up with solutions to not be tempted.
Brad notes the discipline equals freedom and that the framework Jonathan has created for himself makes everything easier and no longer requires willpower.
The accountability and decision-making strategies Jonathan applied to his weightless journey can be used for virtually anything you want to achieve in life. Taking action and trying to be just 1% better what ChooseFI is all about. All of the small wins begin to add up, creating nothing but good, grows your gap, and continuous the virtuous circle.
When we upgrade the quality of our decisions, the impact of them begins to compound and increases our probability of success.
Brad discusses how 70-80% of the contestations he hears involve one of the three killers of happiness: sarcasm, complaining, and blaming. We can change our mindset and the locus of control to impact our future. He believes putting space between stimulus and control can have positive and compounding effects.
As often mentioned on the show, you are the average of the five people you spend the most time with. Those five have the greatest influence on your life and you don't want them to have those happiness killer characteristics. Be intentional with your five picks.
Choose people who give you a path forward and will hold you accountable to the things you said were important to you.
Brad and Jonathan discussed how the concept of resulting, pro and con lists, and infecting others with our opinions before asking for advice is not helpful when trying to make better decisions.
As mentioned during Monday's episode, making better decisions requires depth and an understanding of probability and magnitude.
A challenge for listeners is to write down the five people you spend the most time with and who have the most influence on you. Then write down that their characteristics are that make them a good fit for your top five. And finally, what are the ideal characteristics for people who would be influencing your decisions and where can you find them?
The second exercise is to approach someone and ask for their opinion on something without prejudicing it first. Don't lead with what it is that you really want to do. Ask your question in a way that gets you additional information you maybe hadn't considered yet.
The first win from the community comes from Jodie, a self-professed broke chick who found FI in 2016. Since then, she's doubled her salary, gotten out a debt, flipped a live-in property, paid off her card, got married, formed two business with her husband, quit her job, and hit $100,000 in investments. Congratulations on taking action and changing your life, Jodie!
In response to Brad's weekly email, Evan writes about not shooting for FI with reckless urgency, but a thoughtful understanding of the use of money and how it can improve his life after breaking his finger required surgery. FI isn't about deprivation, but buying the things you value.
While the world is slowly getting back to normal during the pandemic, John calls in sharing how his wife was able to pivot her events business, Escape Room Races. The pandemic killed her in-person events, but she was able to rebrand, and pivot to a virtual format which is bringing in tons of new virtual events and they just had their biggest month ever.
Speaking of live events, previous ChooseFI guest, Christine, from episode 137, sent in a letter saying that at least 50 ChooseFI listeners have come to Nashville and taken her tour. Last Fall, one guest from New Zealand Brough five friends from all over the world after hearing about Christine's tour, A Little Local Flavor, on ChooseFI. She also has converted her friends into ChooseFI listeners.
When you respond to Brad's weekly email and we read your win on the air, you will get one of the ChooseFI Publishing books.
The first winner is Ahmed who wrote in to say he recently graduated college and was due to move to a high cost of living city. Because they moved to working remotely, Ahmad is saving on rent by staying at home with his parents in a low-cost of living city and investing the savings.
The second winner is Tommy who received an email from his state's 529 program that he was receiving a $500 Maryland state contribution.

RESOURCES MENTIONED IN TODAY'S CONVERSATION

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262 | How to Decide | Annie Duke Oct 19, 2020

Annie Duke is a world champion poker player and author of Thinking in Bets, a book which makes the case for embracing uncertainty in our decision-making framework. In Annie's latest book, How to Decide: Simple Tools for Making Better Choices, she answers the question, what does a good decision-making process look like and how to incorporate that into your own life.
The only way we can become better at making decisions is from our own experience, and our experience is going to be the outcomes of past decisions we've made. We need to understand the way in which knowing how something turned out can mess with our ability to figure out why.
In a thought experiment concerning the 2015 Super Bowl between the Seahawks and the Patriots, Annie reviews a play called by Pete Carroll in the last seconds of the game. Though widely panned as the worst play called in Super Bowl history, Annie states that it's hard to evaluate the quality of the play called when we already know the outcome.
Had the outcome of Pete Carroll's play been a touchdown, the reaction would have been the opposite. This phenomenon is called Resulting, where the quality of the result is attributed the quality of the decision.
Reviewing the actual odds of the result of that specific play, Annie determines that Pete Carroll's decision was far from the worst play called of all time as there was only a 25 likelihood of that specific result.
Annie applies what she's learned playing poker, specifically realizing that what you see happen doesn't change the decision that you make, to other aspects of life.
The paradox of experience is that while we know we need all of these experiences to learn, we see how things unfold and we take our lessons for individual experiences, not in the aggregate.
Poker has some surprising similarities to real life in that your outcome is a combination of luck and the quality of your decisions.
The definition of luck is what you don't have control over. You cannot control your own luck. You can control the quality of the decisions you make and reduce the chance that luck has an influence that will turn out poorly for you. While we are all under the influence of luck, we are also very much under the influence of our own decisions.
In our decision making, we should see the luck clearly and make the decisions that are more likely to advance our goals. Brad ties that to ChooseFI's philosophy of the aggravation of marginal gains and striving to do 1% better.
We have a lot of cognitive bias that delude us into believing things are much more stable than they really are. COVID has torn that away from us. We are also feeling the effect of imperfect information. COVID is not a special case, it's just something we can't hide from the uncertainty.
COVID does give us an opportunity to think about how to navigate uncertainty which will improve all decisions we make.
A pro and con list has no dimensions to it, specifically missing are the magnitude of the payoff or how much will it advance or take away from your goal, and what is the probability of each con. These lists also amply biases you already have and can be gamed to reach a predetermined decision.
With inside view thinking, our personal models create cognitive trenches. When new information comes in, we mold it into a model we already have rather than be objective.
An outside view is what is true of the world.
To try and avoid inside view thinking, we need to expose ourselves to different perspectives of corrective information.
The foundation we base our decisions on is flimsy and full of inaccuracies. We should increase the probability that we collide with perspectives and information we don't know.
It's okay to say you don't know very much and decide to get more information to become a better decision-maker.
Making a good decision with one stock doesn't necessarily make you a good investor, you would have to look at all the decisions made with your portfolio.
When getting to your outside view, it helps to get yourself into the future because it helps us look back on ourselves. We also need to realize that we tend to believe we are more likely to be successful than we actually are. It's helpful to think about all the ways in which you might fail.
A pre-mortem is the idea that time travel and negative thinking will result in an outside view and lead to better decision making.
A backcast is the opposite of a pre-mortem where you look at the luck and skills that lead to a positive outcome.
To find groups of people to get the best opinions from, find people who are interested in finding what is true in the world, but by putting the framework in place, you can turn anybody into an amazing true-seeking pod.
When seeking other's opinions, it's best not to divulge your own opinion beforehand. It results in one of three ways: it might show the other person's opinion is right, the truth may lie in the middle somewhere, or it may show your opinion is right and help you to understand it better.
Annie believes that mostly we should be making decisions faster than we do. The decision-making process is a skill and it takes time to understand which we should be taking our time we should take our time with and which could be faster.
The speed of our decisions should be made by the impact of the decision and optionality available.

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261 |"Nothing Gold Can Stay" | What is a HELOC? Oct 16, 2020

After 18 years of ownership, Brad says goodbye to his beloved Honda Civic, Golden Boy.
When it comes to car ownership, ChooseFI often talks about only buying a new car every 15 years. Over a 45 year adult lifetime, the savings, when invested, can amount to almost $750,000 when compared to someone who leases or just manages a constant car payment.
Although Brad wanted to keep the car, it had been having some mechanical issues and his family was no longer comfortable riding in it anymore. The impact it was having on Brad's family was not worth it.
For his next vehicle, Brad opted for a 2013 Honda Civic rather than a brand new car. He purchased his new Civic through Caravana, the car vending machine business, who was selling Civics for roughly $3,000 less than CarMax.
The buying process through Caravan was quick and streamlined. The car was delivered to his home and he spent approximately one-hour signing paperwork and finalizing documents.
There are sweet spots when purchasing used vehicles. Although Brad's car is seven years old, after five years, cars have generally already depreciated at the fastest rate. If you are going to buy new, keep it forever. If you buy used, target 5-7 years old.
Listener Oscar wrote into the show asking about Home Equity Line of Credit (HELOC) which hasn't been something that ChooseFI has discussed much in previous episodes.
A HELOC is a revolving line of credit on your home where the equity you have in your home is used to secure it. For instance, a home worth $300,000 with a mortgage balance of $100,000 has $200,000 worth of equity. A HELOC allows homeowners to tap into the equity locked up in their homes.
An advantage of using a home equity loan over other options for access to cash, like credit cards, is that the interest rate is often much lower, although it is a variable rate and can change. The interest rate on a HELOC may be in the 3-5% range versus 15-30% with credit cards.
For homeowners who placed a sizable down payment on their home, whose home has appreciated, made extra payments, etc., a HELOC becomes a potential source of low-interest revolving credit.
A HELOC is different from a home equity loan in that with a loan, the loan amount is deposited into your bank account and interest begins accruing immediately. A HELOC provides you with the ability to tap into the equity at any time, such as in the case of an emergency. No interest accrues until you decide to access the money. It gives you options if ever needed.
Occasionally, HELOCs can be had for no closing costs. Considering that the process to apply and be approved for a HELOC can take weeks, it can be useful to have one in place so that it is already available if and when it is needed.
Frequent guest and friend of ChooseFI, Big ERN, does not have an emergency fund. He believes that there is an opportunity cost to keeping 6 months of expenses in a liquid account that is likely earning every little in interest. In a thought experiment, he tried to envision a true emergency that he could not cover with credit cards or a HELOC.
Those working to build an emergency fund before beginning to invest are potentially missing out on higher interest rates earned from investments. They might be better off investing their savings and using money from a HELOC to cover monthly expenses in an emergency rather than selling off investments or using high-interest credit cards.
Jonathan mentioned that there are schemes to paying off a mortgage early using HELOCs and credit cards that people can learn about for a fee. Brad doesn't doubt that these might work, but it's too complex. There's no insider knowledge worth paying for. He doesn't believe these methods are any more beneficial than making additional principal payments to a traditional mortgage.
Rather than a HELOC, Jonathan uses a margin loan through M1 Finance for a line of credit. He can borrow up to 40% of his invested assets with an interest rate of 2.75-3.5% and have the money in his account in minutes. Margin loans on investment accounts are lines of credit options for renters.
Listener Alex wrote in with his win with a High Deductible Health Plan (HDHP) and Health Savings Account (HSA).
Listener Rachel wrote in saying that she has reached FI and didn't even know it. As a result, she was able to leave a toxic work environment in the middle of a pandemic and spend more time with her nice and nephew.
FI wins read on the show win their choice of one of ChooseFI's books so keep them coming!
Listeners Brian and Deb maxed out their 401Ks this week before their contracts ended to take full advantage of the company's match and on Oct 23 will officially be financially independent.

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260 | What's your Survival Number? | Jully-Alma Taveras Oct 12, 2020

Immigrating to the United States as a child, by early adulthood, Jully found herself caught up in our consumer culture and had acquired five figures worth of debt. After working to dig her way out and starting on her path to finical independence, she's become an advocate. Drawing from her experience, she now help Latinas become financial powerful through investing.
At the age of four, Jully moved from the Dominican Republic to New York. Her extended family all began making the move as well, but as many immigrants to, they continued to send money and invest in their socioeconomic systems back home.
For immigrants, investing in their home countries has multiple purposes. There is often an expectation that money will be sent home to support the family.
Jully's father supported her grandmother by building her a new home and making sure she was taken care of. However, when the grandmother also immigrated to the US, the house back in the Dominican Republic was rented out and became the first property in a real estate portfolio.
Immigrants have struggles that a typical American doesn't go through. Investing in real estate in their home countries helps connect them to their communities. However, Jully says immigrants tend to invest more in real estate than in the stock market. She shares the message that it is important to diversify their investments.
When she started working for a non-profit at the age of 19, Jully began investing a 403b for the free money. That decision was criticized by her mother who felt retirement was a long way off and that it wasn't necessary because Americans receive Social Security.
When her family first arrived in the US, they didn't speak the language. It was a lesson in how to figure things out in the moment and just survive.
It took a couple of years before her father began thinking in an entrepreneurial way and on a bigger scale. He went from driving a taxi to starting a bodega business.
The bodega enabled Jully to see both her parents work in that environment, build their business, send money home, and contribute to the community.
The money lessons she learned from her parents were to be generous and give. But the reality was her father worked a lot to build their life and they didn't see him much. Had he invested more, perhaps they would have been able to see him more.
Jully went to school for fashion merchandising and economics. When she got her first job, lifestyle inflation kicked in. Working in the fashion industry required looking good with the latest trends.
After accumulating the debt, Jully realized that she was channeling her emotions with her shopping. She was both celebrating and consoling herself with shopping to the point where it became unhealthy.
Thankfully she had continued to invest even when the debt was bringing her down. It wasn't until her father became ill that she realized the safety net she had in her parents won't always be there. At that point, she began working to pay off all her debt. Once debt-free, Jully increased her 401K investments to around 20%.
Jully notes that when first entering the workforce, you feel that nothing can go wrong, or if it does, you'll just figure it out. But you have to start with the basics. You have to start with the foundation of an emergency fund.
Credit card debt is subject to incredibly high-interest rates of 12-30%. With five figures of debt, the compound interest is working against you and it's hard to fig yourself out from under it.
To get out from under her credit card debt, Jully had to make significant payments toward it. The key was knowing her survival number.
She created a simple chart with eight categories of things you need to come up with a survival number. The categories include housing, food, transportation, and even entertainment. Jully's survival number is $581. The items in her $581 figure are the absolute minimum things she needs to survive and keep her life sane.
The reason she can keep her number so low is by house hacking her four-bedroom apartment. With master leasing, she is responsible for the rent each month, but she then uses sub-leases to rent out rooms.
She uses Craigslist to market the rooms for lease in her apartment and thinks it is important to find people with similar lifestyles and working schedules which creates a good co-habiting space for everyone.
After paying off her debt in 2016, Jully felt an incredible sense of freedom, quit her corporate job, and went to work for herself.
She has been inspired and motivated by the financial independence community to use her platform, Investing Latina, to provide resources and stories, to inspire others to do more, increase financial stability, and reach financial independence.
Given the struggles that her family faced when they first arrived in this country, Jully speak about building credit and establishing yourself.
Jully's conversations with new immigrants start her three pillars, building credit, investing in the stock market, and real estate. The first step is to open a debit account to start establishing relationships with banks.
While there is still something of a stigma to talking about money and investing in the stock market in her family and community, Jully is hopeful that it will normalize and influence others. Even having small conversations like, “What are you saving for?” is a little way to get started.
As someone who works in fashion, Jully's transition to her survival number she realized her shopping was an addiction. Using Marie Kondo's methods for embracing minimalism, she cleared out her closets to create a capsule wardrobe, focusing on the items that fit well, looked good on her, and were comfortable.

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259 | Kristi & Big ERN Oct 09, 2020

In our eighth Households of FI touchpoint episodes, Kristi was successfully following the standard path with a six-figure job and keeping up with the Joneses but waiting to take a breath and enjoy life. After finding FI, she realized the money was no longer the goal but simply a tool.
Kristi has been connected with Big ERN, from Early Retirement Now, and over several conversations, they discuss Employee Stock Purchase Plans, 401K contribution strategies, the phase of retirement, and more.
While wealth accumulation is simple math, decumulation is more complicated so Big ERN created the ultimate safe withdrawal rate series.
Some recent changes Kristi has made to her investments since starting her path to FI are moving from a Roth 401K to a traditional 401K and maxing her contributions out. She also moved her current balance and future contributions out of target retirement date fund and into an S&P 500 fund.
While Kristi has the option to self-manage her 401K in a Schwab account which would give her access to a total stock market fund, Big ERN doesn't believe that the difference between it and an S&P 500 fund is minor. Expense ratios are a more important consideration. Moving from a 0.2% expense ratio to a 0.02% might be worthwhile, but leaving the money where it is fine when the difference is 0.01% unless it is an in-kind transfer or a quick process. Human Resources may know how long the process is likely to take.
Kristi approached her HR department about making after-tax contributions so that she could do a mega-backdoor Roth conversion, but the HR department was not clear on how much she would be allowed to contribute. She found the ChooseFI community to be quite helpful for bouncing ideas off of.
She's also interested in her company's Employee Stock Purchase Plan (ESPP). The advantage of it is that she can purchase stock at a 15% discount, but she will pay taxes on the discount and be required to hold the stock for two years.
Such a purchase gives her investment a 5% per year boost, however, there's no diversification in purchasing company stock. Kristi's income, bonuses, and employment are all already tied to her company. That being said, Being ERN says he would probably still do the ESPP, although he would only keep two year's worth of money in the plan and then pull it out. After taking it out, it will be subject to long-term capital gains.
The ESPP may have contribution limits, in which case she should make the additional contributions to her 401K and then do the backdoor Roth conversions.
Big ERN likes to say don't let the tail wag the dog, meaning that asset allocation and expected returns should be the primary concern before tax considerations.
Kristi has a difficult time determining exactly how much to contribute as her company does it by percentage and how bonuses are paid out. If she overshoots it, she could miss out on the company match in the last month of two of the year. Big ERN says some companies will do a true-up, or another HR term, where they will still contribute the match.
Some who have access to a true-up prefer to contribute the maximum to their 401K at the beginning of the year so that their money is in the market longer.
Those without a true-up need to be careful. Big ERN suggested Kristi could look at the minimum and maximum of her salary and bonuses to come up with a range. $19,500 divided by her maximum would give her a rough percentage to start the year with. Toward the end of the year, she will need to look at it again and make adjustments.
Kristi also asked about Big ERN's thoughts on the stages of retirement, but she is most interested in the early retirement phase.
Retirement is an uneven path. Health expenses may be higher before Medicare kicks in and there will be a boost of income once Social Security is received. How do you structure your withdrawals? What are the tax aspects? Which accounts do you tap into first? And what should the assist allocation be?
Big ERN doesn't recommend 100% equities for people in retirement. 75% stocks and 25% bonds is a better allocation.
Kristi will likely have to rely on more than just her taxable accounts during the early retirement phase. She could tap into her Roth IRA accounts as well which may get her to 59 1/2 when she could then begin withdrawals from her 401K tax and penalty-free.
It's best to spread the tax liability as equally as you can due to our progressive tax system. Although trying to optimize taxes is important, safe withdrawal rate and asset allocation are significantly more so. Not all of the withdrawals in retirement are taxable. Some of the withdraw money is principal, which taxes were already paid on.
Good tax planning versus alright tax planning in retirement probably doesn't make a significant difference.
Kristi was also curious about when contributing to taxable accounts might be advantageous over continuing to fund retirement accounts for those who want to retire early. Big ERN thinks what there are cases when it might make sense, but for most people who can assume they will be in a lower tax bracket in retirement, it's better to fund retirement accounts.
Previously, Big ERN had provided Kristi with a spreadsheet to use for determining cash flow issues before she turns 59 1/2 and model Roth 401K conversions.
Kristi says that she has been participating in her company ESPP but hadn't sold any of the company stock until recently. She debated how much to sell and still has a lot remaining. Big ERN suggests that she could sell over a period of time to avoid any regret that might occur with a large price increase. However, there could be commissions associated with selling. As long as she's held it for more than two years, it's all subjective to long-term capital gains or will help with tax-loss harvesting. Low-cost shares with the highest capital gains should be deferred as long as possible.
A little tax-arbitrage is the sell the investments with the highest cost-basis and lowest tax bill.
Big ERN mentions that a lot of people have loss aversion but sometimes it's best to cut your losses, let it go, and take the tax benefit.
Kristi has concerns about HSA rules changing after she's stashed all that money away and paying out-of-pocket for medical expenses. HSAs, however, have a triple tax benefit. there are no taxes paid on contributions, the money grows tax-free and comes out tax-free as long as it's used toward qualified medical expenses.
HSA participants can save their receipts and allow the money to grow. Current or previous years' health expenses may be submitted for reimbursement.
In the United States, rules tend to be backdated, so that if HSA rules do change in the future, the old rules will likely still apply to the contributions. Still, Big ERN suggests not letting the HSA grow to more than 15% of total net worth.
It's important to note that not all target-date funds are the same. The closer the retirement date, the more conservative the fund is going to be. For most people, a total stock market or S&P 500 fund with a low expense ratio is good enough.
Taxes shouldn't drive decision making. Make the best moves that impact you over the long-term. Buying a house for the mortgage interest deduction makes no sense for most people with the new higher standard deduction.
When it comes to tax deductions, the point isn't o get a deduction just to get a deduction, it's to bring home more income

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258 | Back to Basics Part 2: The Income Side of the Equation Oct 05, 2020

Brad has been taking part in a mastermind group and teaching its members about financial independence. While they understood the “Why of FI”, how to get started wasn't as clear. The Back to Basics series of episodes covers just that, how to get started on the path to FI.
The journey to financial independence is not about deprivation. It is about a life of personal choice and abundance. Its starts with understanding your “why” and then setting goals for the next 5, 10, or 15 years.
There's a difference between the money you need to pay bills and meet basic needs and discretionary spending. Understanding how much your lifestyle costs is the first step.
It can be psychologically difficult to do this first step. It may reveal mistakes, but it's important to be honest with yourself and not beat yourself up over them. We all make mistakes.
After knowing what your life costs, what comes next? To calculate your FI number based on your current lifestyle, multiply your monthly expenses by 12 to get your annual expenses. This is how much money you will need each and every year in retirement to cover your expenses.
The 4% Rule of Thumb suggests that you can withdraw 4% from your total assets each year to live on and reasonably expect the money to last for the remainder of your life. For example, if you have $1 million in assets, 4% of it is $40,000 that you could withdraw each year. The 4% withdraw rate is adjusted for inflation.
To get to your FI number, multiply your annual expenses by 25. $40,000 multiplied by 25 is $1 million. $80,000 in annual expenses, multiplied by 25, results in a FI number of $2 million.
Whether starting with a net worth of zero or with some assets, the next step would be determining your current path to your FI number.
The point of saving money is not for it to be finally used for a retirement far off in the future. Save to reclaim decades of your life when you can spend time as you see fit. Reframing the goal of saving allows you to reorient and see that saving money is investing in your time.
One of the reasons Brad and Jonathan enjoy board games so much may have parallels with financial independence. Both involve iteration and getting better and better at making smarter decisions through gamification.
People who win games the most have an intermediate mindset. They understand the limitations balanced with longterm thinking.
When looking at income, what is the bare minimum needed to cover your expenses? For a married couple living in Virginia spending $80,000 a year on expenses, they will need to earn an income of $102,000 before taxes and without contributing to savings or retirement. They would pay $9,000 in federal taxes, $5,000 in state taxes, and roughly $8,000 in FICA (social security and medicare taxes), for a total of $22,000 in taxes.
When income and expenses are exactly the same, you can never afford to retire. How do you create some space between the two?
Expenses are not always fixed. Cars loans come to the end of their terms and student loans are paid off. Add in some cuts to a few other line items in your budget and you might find an extra $1,000. How might that change things?
Cutting $1,000 from your monthly expenses reduces your annual expenses and subsequently your FI number by a whopping $300,000.
What should you do with that extra $1,000 a month? Putting that savings into a 401K allows that money to begin working for you.
In addition, the $1,000 a month going into a 401K becomes a tax deduction and reduces your federal income tax. For the couple in the previous example earning $102,000 per year and bringing home $80,000 after taxes, contributing $12,000 to a 401K doesn't mean they have $12,000 less to spend. With the tax advantages of contributing to a 401K, they will bring home $70,000, only reducing their take-home pay by $10,000. They saved $2,000 in taxes. Since they already have enough money to meet their expenses, that extra $2,000 saved in taxes could go toward a Roth IRA.
Part 3 in the Back to Basics series will talk about optimization on both the income and expenses side of things.
Our hypothetical couple, starting with a zero net worth, after investing $1,167 a month (totaling $14,000 per year) at an average 8% rate of return, will hit their FI number of $1.7 million in 30 years.

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257 | Back to Basics: Getting Started with FI Oct 02, 2020

In this ChooseFI Back to Basics episode, we review Health Savings Accounts (HSA). What happens when you need to finally pull money out after funding it year after year?
ChooseFI Chief Content Officer, MK, is just weeks away from having her baby. For years, she and her husband, Jason, have been funding separate HSA accounts without making any withdrawals.
They now contribute to a family plan HSA and decided it was a good time to test out how complicated the process was to withdraw HSA funds.
They discovered some plans are easier than others. The process of withdrawing funds from the fund MK had rolled over to Fidelity was super easy. Jason's was a bit more tricky due to the Health Insurance Portability Accountability Act (HIPPA) compliance laws and auto-reinvest settings. Now that they tested it out, they feel confident they will know what to do in the future.
An HSA is a type of investment vehicle that gives you a tax deduction in the current year and helps pay for healthcare-related expenses.
Only those participating in qualified in high-deductible healthcare plans are eligible for HSAs. For 2020, the IRS defines a high-deductible plan as one with a deductible of $1,400 for an individual, or $2,800 for a family. the maximum a family may contribute in 2020 is $7,100, and half of that for an individual.
The money going into the account isn't subject to income tax and sits in the HSA account until you submit for reimbursement of healthcare expenses. HSA withdrawals for healthcare expenses are also tax-free.The benefit of an HSA is that the money can build and grow over time. Healthcare expenses do not need to be submitted for reimbursement as they are incurred. HSA participants can pay out-of-pocket and wait for years before requesting reimbursement if they choose to.
The IRS criteria dos state that the high-deductible plan must be a qualified plan. Check with your company's human resources department to determine if your plan is a qualified one.
HSA participants should also understand who their plan is with, what investment options they have, and what the fees are. Based on fees, Fidelity and Lively are two good providers who offer low-cost, board-based investment fund options.
The goal is to cash flow medical expenses in your younger years when they are generally lower, funding the HSA with pre-tax dollars and allow them to grow until later in life when healthcare costs begin to increase.
There may be additional tax benefits from using your employer's HSA provider rather than Fidelity or Lively.
Because you can submit for reimbursement years after the expense was incurred, save your receipts. Brad has a Google doc that lists all of the healthcare expenses he pays out-of-pocket and saves a pdf of the receipt in his Google Drive account.
Even if your provider offers a way to upload receipts, you should always maintain your own records and only use the provider's system as a secondary backup. If you change HSA, you could lose your receipts.
It is your responsibility to verify to the IRS that you've been using the funds in the HSA appropriately. It makes it easier if you have all of that information maintained in your own cloud-based account.
After several years or decades of cash-flowing healthcare, it may be possible to have tens of thousands of dollars of reimbursable expenses that are accessible anytime, tax, and penalty-free whenever it is needed.
The final episode in round one of the Households of FI series airs next week. Throughout this series, ChooseFI follows eight diverse households at different points on their path to FI.
More exciting news for ChooseFi is the website redesign, expected to launch in the coming weeks. The new website format was designed with your experience and journey to financial independence in mind. The content on the site has been curated so that people looking for specific content can easily find what they are looking for.
If you would like to receive a notification when the new website has been launched, go to ChooseFI.com/subscribe and an email will be sent to you when it's ready.
Brad recently gave a presentation to Dominick Quartuccio's Do Inner Work mastermind group on the Why of FI. Though people seemed to understand the why of FI, there were questions regarding how to get to FI.
How does someone go about getting started? It starts with visualizing where you want to be in 10-15 years, what your goals, and what kind of options you'd like to have.
If Brad were to go back to when he began his journey, he would have said that there's got to be more to life than what he's experiencing. Life was comfortable, but it felt like Groundhog Day. He could see himself doing it for the rest of his life.
The second task when starting on the path to FI is to take an assessment of what your life actually costs. What you earn minus what you spend, equals the gap, or the amount of money you have left to work with.
Adding up your structural expenses, recurring monthly bills, unplanned expenses, and then looking at all the little discretionary expenses can be a difficult task. No one should beat themselves up over it.
Once added all together, you have a realistic estimate of what your life actually costs. It's not complicated math.
ChooseFI Episode 258 airing on Monday will tackle the other side of the equation, the gap, and discover how to affect the outcome.
It's the first anniversary of the release of ChooseFI's book! To celebrate, we're giving away the first chapter for free when you go to ChooseFI.com/book.
The weekly book giveaways are back! Winners will be selected from response to Brad's newsletter call for FI wins. This week's winner is Belinda. After tracking her spending for three months, she made a budget and reduced her family's food budget by $900 a month. She's also funding her Vanguard account $500 a month, refinanced her car loan, her husband maxed out his 401K, and she hopes to max out her SEP IRA. She says having control of their money is giving them power back over their lives.

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256 | Double Your Income by Flipping the Second-Hand Market | Flea Market Flippers Sep 28, 2020

How can you recognize the value in the secondhand market, begin optimizing a strategy, and turn it into income? Today's guests, Rob and Melissa Stephenson, the Flea Market Flippers, have built a six-figure business flipping the bargains they find.
Rob spent weekends as a child with his parents visiting yard sales. They bought items and then listed them for sale to a bigger market using the newspaper classified section. Rob followed in their footsteps, flipping items as another side job without realizing the full potential of it.
Selling used items is no longer a local market. With the launch sites like eBay with 181 million users, the whole world becomes the market.
Rob and Melissa's business model capitalizes on larger items, such as commercial exercise equipment or restaurant equipment. They find the items locally from establishments going out of business. They look for the higher retail items which will make them a lot of money. It helps them to work less and make more profit. From their 89 sales last year, they made $80,000.
For example, over the summer, they found a 40-inch range that retailed for $4,500. They bought it for $200, brought it home, then sold on eBay for $2,800.
Over the last five years, Rob and Melissa have honed their freight skills and can ship very large and heavy items for reasonable prices.
While they have become comfortable shipping large items, Rob and Melissa want people to start where they are at. Start with the items in your house, learn the system, how to take photos, how to sell on eBay to slowly build your confidence.
The majority of the time, they research an item before buying it. Some things do sell quickly, but other items need time for the right buyer to find them before they sell.
There are skill sets involved that make flipping items work: finding the deals, researching prices, making offers, marketing, taking good photos, and shipping. However, Melissa says it's actually a really simple business.
There are lots of options for finding items, but Rob's favorite apps are Facebook Marketplace and OfferUp. He will scroll through them for ten minutes while sitting in his LazyBoy at night.
There are fewer risks than there were several years ago. Smartphones have made it possible to jump onto eBay to check everything for the last 30-60 days that has sold. It's similar to the MLS with the housing market and looking for comparable properties that recently sold.
If you can't find it on eBay, a good rule of thumb for items in good condition is 50% off retail.
They no longer do many actions on eBay, opting for Buy It Now and listing for the price they want.
Since you can see what an item has sold for the in past, if you want to sell it quickly you can just price it a little bit lower than that.
Rob and Melissa sell 85% of their items on eBay and the rest on Facebook Marketplace. They usually cross-post items but eBay is consistently a winner.
Fees on eBay are 13%. PayPal processing is 3% and 10% goes to eBay. They believe the opportunity to sell to a larger audience is worth the fee.
Taking good pictures is important, with clean photos and nothing in the background. Fancy photography equipment isn't required. They still use their iPhones for everything. Since eBay allows up to 12 photos, you should use all 12 photos.
The title for the item is the most important since eBay is essentially a search engine and the searches will come up on Google too.
Descriptions are less important and Rob likes to underpromise and overdeliver so people have realistic expectations.
Since they already have a good idea of how much it going to cost, they build it into the item cost and offer free shipping. It helps items to sell more quickly and reduce emailing back and forth with the buyer.
Rob and Melissa love what they do and already feel like they are retired even if they haven't hit their FI number. Rob spend about 20-25 hours a week on their flipping business.
They both like to travel and have a goal of being able to pay for the trip by flipping while on the road.
Flipping is something Rob and Melissa are so passionate about that they teach a course. They have two groups they've been teaching, one with no experience flipping, and another group of experienced flippers looking to go freight.
Rob and Melissa offer a webinar, which can be found at ChooseFI.com/flip, and a paid course.

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255 | If People Can Do it Then I Can Do it Too | Leslie Tayne Connects with Vivian Sep 25, 2020

Picking back up with the Household of FI series, Vivian is a single mom who found FI in the last year, but initially, it seemed impossible. It wasn't until she was introduced to the ChooseFI podcast and saw real people reaching financial independence that she believed she could do it too.
Vivian has been dealing with a number of challenges: a cancer diagnosis, a child custody battle, and caring for parents who have no savings of their own.
As a pharmacist, she earns a significant income. She's already managed to pay off $300,000 in student loans in six years and believes she can save $60,000 a year.
Vivian has been paired with mentor, Leslie Tayne, also a single mom and attorney who helps people with debt relief.
Leslie acknowledges that what Vivian is going through with her separation is one the most challenging times in her life and it is a very emotional experience along with being financially damaging. However, there is a light on the other side and she will come out with more freedom and more control.
Because her significant other's mom used to watch her child while she was a work, childcare is a challenge right now. Childcare is expensive and not something you can find discounts on.
As an attorney, Leslie helps her clients to fix their financial messes without judgment. She doesn't believe in a debt-free life since life has its ups and downs. Instead, it's okay if being debt-free is not realistic. We should learn to embrace our debt but what is important is how you manage the debt.
Due to the separation, Vivian will be selling the house that is entirely in her name. If she makes a profit, she should talk to her tax preparer about qualifying for a capital gains exemption.
Vivian is also interested in ways to save for her child's college education to which Leslie offers several options: contributing to a 529 plan, a state pre-pay program, or a regular savings account.
There are tax advantages to contributing to a 529 plan over a savings account and should Vivian's child decide to not go to school, the money in the 529 plan may be used for grandchildren or withdrawn with earnings taxed at regular income tax rates.
The Texas pre-pay option would allow Vivian to lock in current undergraduate tuition rates and required fees.
When it comes to budgeting for groceries, Leslie says that her family mostly eats at home and orders out just once a week. One trick to not overspending at the grocery store is not to take the children with you, shop with a list, don't allow yourself to get distracted, and buy non-perishables in bulk.
When you have no choice but to bring your child with you, you can allow them to pick one item so that they can pick something they want without filling your cart with everything they want. It limits your financial exposure when shopping.
While eating out, rather than order a kid's meal, share bites of your own meal, and develop a taste for adult foods.
Vivian's daughter is not yet attending pre-K schooling, due to the virus but may be able to find reasonably-priced options that give her the option to socialize.
Because her significant other has not been cooperative during their separation, all of the attorney costs and other fees have gotten be very expensive. Vivian needs to be as cooperative as possible to limit her financial exposure.
Leslie says a good piece of advice is don't marry or get involved with anyone you don't want to be divorced from.
It's often advisable to keep finances separate in a relationship and protect any assets with a prenup or postnup because it is very tricky to untangle them should the relationship end.
Everyone should look at what deciding to combine finances in a relationship really means and how it impacts things.
Brad reviewed the capital gains tax question and said because Vivian has lived there for at least two of the last five years, she would be eligible for up to $250,000 in capital gains tax exclusion.
The decisions being made should be ones that will make life better over the long-term. Brad's goal is to set the groundwork for a successful life.
Jonathan notes that Vivian doesn't appear to have an issue with her savings rate, instead, she may be at risk of slipping into a deprivation state. To fight this urge, Brad believes we need to have a better idea of what the path looks like for her.
As ChooseFI follows Vivian during this study, she will need to better understand her expenses and her FI number. She needs to have a sense of where she is to know where she is going.
ChooseFI recognizes that some audience members are just finding and joining us now. ChooseFI is building out a curated path to help you figure out where you are and what information will serve you best. Sign up to receive this information and more at ChooseFI.com/start.

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254 Creating a lifestyle not a Job | Corbett Barr Sep 21, 2020

Building a business online has never been easier than right now, but Corbett Barr was forging his path in the early 2000s when it was hard. We're diving into his origin story to learn what gave him motivation and why he believed entrepreneurship was for him.
Working as a consultant in Fortune 500 companies, Corbett had the kind of job a lot of people really wanted and could build a career around. Though he wasn't aware of financial independence at the time, he didn't want to climb the ladder only to find it had been leaning up against the wrong wall.
Unhappy with his career, he was nudged toward entrepreneurship but was scared to take the leap until a friend asked if he wanted to become involved in a new project, which he was able to do without risking any of his own money.
In his early 20s, Corbett was furloughed from his job during the 2000-01 financial crisis. During his efforts to stay afloat, he was ashamed and learned how important it is to save as much as possible. His savings gave him enough of a cushion to last a year or so in order to find out if he had what it takes to be an entrepreneur.
His picture of entrepreneurship at the time was working yourself to the bone, sleeping under your desk, and hitting a home run before earning a bunch of money and doing whatever he wanted. But he found that he still had a host people he still needed to answer to and felt even more trapped than if he were an employee.
After putting in so much time, effort, and money, it was painful to realize he didn't have much to show for it. But after having a taste of entrepreneurship, it was hard to imagine going back.
Rather than jump into another project, Corbett and his wife took an eight-month sabbatical in Mexico to clear his head, reset and pivot.
The Mexican sabbatical allowed him to put some space between himself and the friends, family, and San Francisco venture capitalists influencing his life to see that something else was possible.
It was around that time he discovered concepts of location, independence, lifestyle design, and digital nomads. He realized that perhaps what he wanted wasn't to be wealthy, but instead to have enough time and control to do the things he wanted, like working on the things he wanted or spending time with friends and family.
When discussing the dark side of entrepreneurship, Corbett says we don't often see the path of destructions can leave in people's lives. However, it has become much more democratized in recent years where you don't have to take investment money or big-name advertisers. It allows you to really be in control and think about how you go about doing it.
Though he originally envisioned building a product and then finding customers who wanted it, he decided to go with an audience first business where he would find customers who wanted a product he would then build for them. An audience first strategy ends up taking a lot of the risk out of things.
In the beginning stages of entrepreneurship, it's all about finding your topic and what you are going o building toward. It's good to jump into something you are interested in and can become good at. It can take experimentation and doesn't necessarily come overnight.
Something that Corbett teaches is “minimum viable income” where you cut back all of the fat. Though he jumped in with both feet and lived off savings, people like Brad did things on the side. And adding an extra thousand or two in income through a side project, it can change the entire trajectory in terms of FI.
Some of Corbett's observations about working for yourself are: you have no one to blame but you, when you work for yourself, you don't have to worry about a new boss, you decide when you work and when you don't, no pointless, actionless meetings, no cubicles, and the coffee is amazing.
When living a nomadic lifestyle, Corbett and his wife consider the total annual cost of their home base, including any rent they might receive back. Some locations are better than others, so you may need to get creative about it.
In 2009, when Corbett began building his audience first business, he began with free ebooks on affiliate marketing, followed by an online course, and then another, and another. He began to realize that he wanted to layer coaching and community on it. He's been doing that through Fizzle since 2012, along with a podcast.
Free consultations are a great way to understand what questions your audience has and then build it into your product. There are ways to ease into charging for the product you are creating to find out if it's viable.

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253 | Back to Basics Sep 18, 2020

Going back to the basics of ChooseFI being a crowdsourced show, Brad and Jonathan address what's going on in the FI community with a wild card Friday episode.
Why revisit content that's already been discussed? After several years of introducing new ideas, the ChooseFI audience may be in a different place financially and ready for a refresher on some of the more advanced concepts presented earlier in the show's history. And newer listeners may not have combed through the archives and missed out on topics relevant to their situation. This episode back to basics provides an orientation of what ChooseFI hopes to deliver.
Goals for the podcast are to introduce a new idea or story during the Monday episode. But not every strategy or tactic works for everyone. Friday's Roundup episode looks at that idea from different perspectives, incorporates audience feedback, and seeks to answer additional questions.
The FI Weekly is the email Brad sends out every Tuesday where he provides subscribers with ideas to ponder, inspire, and motivate people on their own journey and shares what actions he is taking to make his life a little bit better. Opt in to receive Brad's email, The FI Weekly, at ChooseFI.com/start.
Financial independence means different things to different people. For Jonathan, it means he has options allowing him to choose what he does during the best years of his life. For Brad, it means freedom, giving him the ability to live life on his terms, spending time with his family.
Pursuing financial independence doesn't mean living a life of deprivation. It's about choice. No one should tell you how to spend your time, your freedom, or what to spend your money on. You have the freedom to spend money on an expensive car if you choose, as long as you understand the impact of that decision.
It's not even about being at financial independence or not. Simply being on the path to FI gives you options. Whether you're in a toxic situation at work or want to pursue a passion project, just working toward FI gives you options those on the standard path cannot afford to take.
Sharing stories from the community and discussing the decisions they have made broadens and brings to light the scope of options available to the variety of personal challenges you may have.
The pursuit of financial independence is not necessarily about hitting that FI number. It's a life optimization strategy.
If you are working in a low-wage job and don't see the path, you can be trained in a new industry and be making $60-80K within six months. Check out the Talent Stacker podcast.
Shane recently posted in the ChooseFI Facebook Group, “I'm a recent college graduate, 23 years old. What advice would you give yourself when you were my age regarding investments, retirement/401K, and student loans? I want to invest, but I also have about $30,000 worth of student debt, but I'm only making around $41,000 a year.”
Brad notes that a lot of people like Shane are looking for tips or special advice that will get them to financial success, but that there's nothing complex about it. It comes down to savings rate and time.
Increasing savings rate is easier when you reduce your structural expenses. If your life doesn't cost much, you can increase your savings.
When first starting out, Brad and Laura weren't making high salaries, but they set themselves up for success by moving to a city with a lower cost of living, purchased a home with a reasonable mortgage, and have driven the same car since 2003. These choices allowed them to have a 50% savings rate and meant if Laura decided to stop working once they had kids, they would be fine.
Brad and Laura became wealthy because they didn't care about looking wealthy.
With some quick math, Jonathan calculates for Shane to have a 50% savings rate, his monthly expenses will need to be $1,700 a month. With a mortgage and expensive car payment, that may be difficult. He might do well trying something like house hacking.
Shane could purchase 4 bedroom house, rent out rooms to friends and cut his housing expenses down to $300 a month.
40% of most people's expenses go to housing and transportation. Optimizing in just those two high-cost areas can make a huge difference in your savings rate.
Anchoring yourself to a food budget of $2 per person per meal per day in another way to reduce a major expense category. Laura sits down once a week to plan out several meals for the week, making enough to have as leftovers on a second night. The meals she cooks average that $2 per person per meal goal which helps them save over $1,000 on eating out and picking up convenience foods at the grocery store.
A rough target for housing expenses is 25% of your take home pay.
For investing, Brad recommends Shane begin with low-cost index fund investing and JL Collins' book The Simple Path to Wealth.

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252 | Life Rebuilt | Julia Harder Sep 14, 2020

Everyone's path to FI is going to look a little bit different and there is so much we can learn from each other. Hoping to inspire and share lessons learned through conversations with community members, Brad and Jonathan speak with Julia Harder, an active duty member of the Coast Guard, is already well on her path to FI.
Always a natural saver, Julia was influenced by her dad, who stressed the importance of investing, and Dave Ramsey's teachings that debt is bad. She was on a good financial path, yet she still felt something was missing.
Though it sounds counterintuitive, Julia's path to financial independence began with divorce. Prioritization to her marriage, she rarely spent money on anything she didn't absolutely need. During her marriage, her husband helped her learn that some spending can be a good thing. Unfortunately, he was an irresponsible spender and there were months Julia found she couldn't pay all of the bills.
Although she knew something was wrong, she failed to listen to her instincts and all of the red flags that kept popping up. she just assumed everything would be okay rather than taking a step back and thinking about it critically.
Following her divorce, she was left with a $300,000 mortgage, a $20,000 car loan, no savings, and was feeling like she had hit rock bottom financially. Following Dave Ramsey's advice, Julia began to follow his steps to get back on her feet and find herself and her financial objectives again.
Julia was all in on Dave Ramsey's strategies. She cut up her credit cards, began using cash for everything, and made a budget every month. It gave her discipline and solidified her habits.
She found ChooseFI in May 2019 after she began teaching personal finance to other members of her Coast Guard unit. The thought of optimizing investments and taxes really caught her attention. It was exciting to begin taking action to optimize her money in these areas as well.
It was more difficult to come around with respect to travel rewards credit cards, but because she had learned to be disciplined with her budget, she could spend money on a rewards credit card and begin optimizing her travel spending too.
Before ChooseFI, Julia thought she was killing it with her 15% savings rate. She assumed 59 and a half was the earliest she could retire because that's the age her finical advisors had given her. She was blown away when a ChooseFI guest discussed their 70% savings rate. It was then that she realized she could control so much more than current her zone of awareness concerning savings and retirement.
Julia plans on remaining in the Coast Guard until eligible for a pension at 20 years of service. While others often ask if she'll be bored, she has a list of passion projects she can't wait to pursue without having to worry about how to pay the bills.
As someone who always enjoyed public speaking, last Fall, she took up book narration after reaching out to a friend with audio experience for help getting started. She's also joined Jonathon's Talent Stacker class and looking to start a podcast.
Julia keeps a list of all the things she wants to accomplish and FI will give her the freedom to pursue them without being obligated to a job or other people's expectations.
Between Julia's pension, TSP, Roth IRA, and a taxable brokerage account, she plans to hit Fat FI in 2027 when she becomes eligible for her pension.
Calculating a FI number with a pension is a bit different than multiplying annual expenses by 25. Julia estimated her pension using the military's pension calculator. She multiplied the difference between her pension and her expenses to calculate her FI number.
While she still follows the tenants of Dave Ramsey's Baby Steps and has met the minimum standards, she believes she has moved on from the standard path of working for 40 years and is more in line with ChooseFI.
Jonathon stressed that like Julia, members of the military with a pension, the Roth Conversion Ladder is not going to be a good option since it requires a few years with little to no income.
When exploring the idea of a talent stack, some people may have a difficult time identifying what they are really good at. It might start with identifying a pattern in what others tell you you are good at.

To watch the video highlights, click on ChooseFI.com/252

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251 | Should I Pay off the Mortgage on the Path to FI? | Brad Connects with Martin and Ayesha Sep 11, 2020

Martin and Ayesha are both natural savers who have been great about living below their means but lacked a real plan. Their goals are to maximize investments for retirement and finding ways to utilize dividend funds.
After stumbling across the ChooseFI podcast, they felt like their financial independence number and retirement seemed obtainable which has helped push them to commit and make even bigger changes.
While Martin and Ayesha had a 20-25% savings rate before finding FI, Brad commended them on what a great job they were doing. He also stressed that FI is about living a better life and having the financial security to get you there, not what your savings rate is.
Despite the inclination to save, Ayesha always resisted the thought of meticulousness and restrictive budgets. However, she found that she could get behind the idea of focusing on spending on what they truly valued, so they began using Personal Capital as a less obtrusive method of tracking their spending and gaining insight into their habits.
Something that Martin and Ayesha place considerable value on are experiences, particularly travel, spending time with friends and family, and being healthy. Instead of getting together at restaurants and spending money on pricey meals out, they began hosting monthly potlucks.
Ayesha has found the website Budget Bytes to be incredibly economical when it comes to low-cost recipes and efficient for discovering uses for the ingredients she already has in her refrigerator. It's helped to cut their grocery bill to around $600 per month for their family of 4.
Due to quarantine restrictions, Ayesha was out of work for months, which she calls a blessing in disguise. During that free time, they were able to take a deep dive into their spending and immediately saved $500. It also allowed them to slow down and spend more time with family enjoying the outdoors, playing games, and eating all three meals together.
Following the time off from work, Ayesha has realized that it does cause her some stress which made her want to buy things. It also strengthened her conviction to reduce her workload within 5 years to perhaps just one day a week so that she can find more joy in the moment.
Although Martin enjoyed his two-hour daily commute, working from home during the pandemic has made him more aware of the importance of time. He now strives to make the most of his time and focus on using it in ways that bring him the most value.
While their monthly expenses are not constant because life is lumpy, it runs around $3,500 but can go as high as $5,000 a month when home repairs are needed.
Martin and Ayesha have a goal of reaching FI in seven years and are looking at exploring several different options to help get them there.
With option one, they would withdraw money from an investment account to pay off the mortgage on their home. The money saved on the mortgage payment would then be invested for the next seven years.
In option two, they would use their investment account to pay off half of the remaining mortgage and continue to make the monthly mortgage payments which result in a mortgage pay off in seven years.
Their third option is to refinance their current mortgage which has 17 years left at 3.3% interest rate to a 15-year loan at 2.6%, but that refinance incurs $7,000 in fees. The payments would remain the same, but the home would be paid off two years earlier.
Ayesha likes the idea of not having a mortgage but doesn't want to do it if the numbers don't make sense. However, Martin is okay with a lower net worth if it means they can get rid of their mortgage because he feels they would have more options.
Brad admits this is an issue he and many others in the FI community struggle with. With such low-interest rates on mortgages, it's almost always a better option mathematically to keep the money invested, but it doesn't mean it's the right decision for everyone. The psychological aspect needs to be considered.
If they would like to pay the mortgage off in seven years, the best thing they can do it to use an amortization calculator and see how much extra they will need to pay each month to have the mortgage paid off in seven years. Martin and Ayesha can then see how that payment fits into their current lifestyle.
As a fourth option, Brad pointed out that they can drastically reduce their FI number if they were to pay off their mortgage. With a FI estimate of 1.25 million, using the 4% rule, they would have $4,000 per month. If the mortgage was paid off, they could reduce their monthly expenses by $1,600, and then their FI number is only $750,000.
After living through the 2008 housing market crash and not having a plan, and then this most recent market downturn, Martin and Ayesha have realized they may not be as risk-tolerant as they used to believe. Brad suggested having an investor policy statement that they've written down to help them stay the course in times of uncertainty.
The biggest takeaway is the being on the path to FI gives you options when you have the freedom and flexibility to create a plan that works to meet your goals and live a better life, even if it isn't always mathematically optimized.
It's a common problem to be overwhelmed with all the information we consume about optimizing various aspects of our lives that we end up with analysis paralysis. It's important to remember that we're trying to live better lives. They don't have to perfect or 100% optimized.
One final concern Martin and Ayesha have is funding their children's education. Brad admits it may be wishful thinking that the higher education system goes through some sort of dramatic change in the coming years, but he and Laura consider paying $50,000 a year for college to be unpalatable and have stopped putting money into their girls' 529 accounts. Instead, they have tried to normalize the conversation about money in their house and have discussed lower-cost options for college.

To watch the video highlights, click on ChooseFI.com/251

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250 | Money Lessons From My Grandparents | Anne Zonca Sep 07, 2020

Once you realize financial independence is possible for you, how do you ensure the money lessons you've learned are consistently passed down to future generations?
Anne Zonca's family is well ahead of their time when it comes to financial independence. When many are focused on second-generation FI, Anne herself is third generation FI working to pass along her family's lessons to her own children.
Children of the Great Depression, Anne's grandparents were deeply effected by having lived through it. Starting out in marriage with literally nothing, they worked hard and saved so that they never had to live through a financial situation like that again. Understanding that saving was not enough, they began investing in the stock market in the 1950s.
With a formal education, her grandfather stayed informed with the Wall Street Journal and sharing stock tips with his brother. They invested in individual stocks, picking ones they felt were stable, like oil and gas, or utility companies. For stocks that paid dividends, they reinvested the dividends. with this strategy, they were able to build a substantial amount of wealth.
Anne's mom recounted stories about how her grandfather got into stock investing, but Anne became more aware of her grandparents investing prowess around 14 when they began gifting stock to their children and grandchildren.
While the value of the gifted stock wasn't necessarily a large sum, it was substantial considering they were regularly gifting to 4 children and 11 grandchildren.
The gifted stocks were paying decent dividends, but rather than receive a lot of checks for small amounts, the dividends were all reinvested.
Though the growth on the stocks gifted to Anne was not enough for her to reach FI, she definitely had a heart start and was learning about stocks and investing at a young age.
Her grandparents gifting stock to the family was a win-win scenario as her grandparents did not have to sell the stock and pay capital gains on the appreciated value. Though the recipient bears a tax burden, children are entitled to a certain amount of capital gains each year tax-free.
Currently, children can have up to $2,000 of capital gains before being subject to capital gains taxes.
Following the example set by her grandparents, Anne's parents were able to achieve financial independence as well through entrepreneurship and real estate.
Although preceding generations had reached financial independence, it wasn't wealth being passed on from generation to generation that got them there. It was the lessons of spending less than you make and smartly investing the extra that perpetuated generational success and wealth.
Despite her grandparents' success in the stock market, there was remarkably little conversation about investing until the grandkids were older and showed an interest in having such conversations.
As a result of the gifted stocks and her parents being good stewards of it for her, Anne was able to use it and graduate from college debt-free.
As life is often bumpy, Anne experienced her own financial setback when she divorced her husband and the courts gave her ex-husband half of everything her grandparents had gifted to her. Luckily, the money lessons she had learned allowed her to be in a financial position to leave behind the marriage and move on with her life.
Although not everything has gone fairly or smoothly since the divorce, Anne has adopted a great attitude by understanding that it's only money, she will be able to move on, and that she will still reach FI.
The advice she would give to anyone else going through a divorce is to work with the things that are burdening you, follow your heart, and don't sacrifice your life, happiness, or the person you want to be over a bad decision. You can work hard and invest. There are still a lot of opportunities to save money, meet goals, and find love.
Having been a stay-at-home mom and yoga teacher, Anne needed to get back into the workforce to support herself. A friend advised her to do it scared. The first year was hard, but she built up her skills and got her CPA certification renewed.
Anne's grandparents lived long enough to begin gifting stock to their great-grandchildren, so her kids have been the fortunate recipients of these gifts and their associated money lessons.
In addition to the stock gifts, Anne started a program of investing pocket change with her kids. Now that they are are in high school, they listen to ChooseFI with her and she's established stock accounts for them so that they can become comfortable investing in stocks and mutual funds.
To impart a FI mindset in her children by being an example. Anne drives used cars. She also has them responsible for paying their own car insurance, which incentivizes them to get good grades to earn a discount. And she gives them some say in how Anne she invests money for them.
Anne says financial independence means freedom. She can make decisions independent of the financial impact.
Second, third, and fourth generations have a distinct advantage when starting out in life with the information, language, and a framework to make their path to FI easier.

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249 | Carol connects with The Retirement Answer Man Roger Whitney Sep 04, 2020

Brad is back after taking August off of work as his Red X month. Though his original vacation plans were changed because of COVID, he made the best of it. They spent three weeks in Long Island visiting family, enjoying the pool, board games, and a digital detox.
While Brad was away relaxing, Jonathan used that time to work on a couple of big passion projects. During the month of August, Jonathan created a podcast course and membership group. He also started a new podcast as a way to demonstrate to the group how you start one. The Talent Stacker podcast uses the content discussed on ChooseFI but then goes even further and fills in the holes to focus on skills, certificate programs, and career paths that don't require the high cost of college.
The first episode of Talent Stacker has already been released and this coming Monday's episode will feature Bradley Rice where he and Jonathan discuss a carer path you can start for free with no talent stack, no career, and no experience and after 6 months of training, you can make a minimum of 60-80K with the ability to scale for an even higher income.
The Talent Stacker membership program has lifetime guaranteed access where they will work with you to as long as it takes to get you working in that new job earning $60,000.
Programs such as the one discussed on next Monday's Talent Stacker episode are becoming more popular with examples like Google's new career certificate program which also takes about 6 months to complete at a fraction of the cost of traditional college. The Vice President of Global Affairs at Google, Kent Walker, stated they consider the certificate to be the equivalent of a four-year degree for related roles.
The next Households of FI family featured this week is Carol, sho found FI in 2020. In her mid-50s, Carol claims she is financially illiterate and does not want to end up being a burden to her child. Her goals are to change her deprivation mindset when it comes to money, retire with financial security, and kick her lifelong issues with credit cards. Carol was introduced to financial planner, Roger Whitney, to come up with a financial plan of attack.
Since finding FI, Carol has jumped right in reading and listening to as much as she can. In that time, she has cut her debt in half. She believes her first steps should be to pay off debt, start an emergency fund, and begin saving aggressively for retirement. She also knows she needs a mindset shift.
Carol struggles with budgets, but she's contributing to her 401(k) for the first time and is only giving herself a small amount of spending money with everything extra going to savings after her bills have been paid.
Roger suggests there are two ways to tackle the mindset issue, either toughen up and do it, or set up a system to capture her excess money.
Rather than focus on the big hill Carol needs to climb, Roger wants her to focus on what little thing she needs to do next to begin to create momentum. He also suggests that having a community like ChooseFI is great for providing encouragement, assistance, and being a virtual mentor.
Carol wants to know which is more important paying off her credit cards or building her emergency fund. Because she's been good about not using her credit cards and they have a high-interest rate, Roger wants her to focus on paying off her cards with every extra dollar she has.
Second, Carol should set up a system for how she manages her money. It can be helpful to have income deposited into a savings account we don't see and then transfer spending money to checking accounts at another bank.
After paying bills and buying groceries and gas, Carol has about $200 leftover at the end of the month before she receives her commissions from sales. With her commission checks, she would like to save 50-60% of her income.
Carol's company offers both a traditional 401(k) and a Roth 401(k), but she is unsure what the differences are. Roger explains with a traditional 401(k) contributions and growth are tax-deferred until withdrawn, while Roth 401(k) contributions are made from post-tax income and grow tax-free.
The next two levers Carol needs to focus on are earning as much as she can in commissions which is the most effective way to make the plan work. The next lever is to hang on to the money she is earning.
Side hustles are another area Carol is looking at to increase her earnings. She's already published two books and is working on a third, as well as looking for another side hustle.
Since she enjoys writing, Roger suggested that Carol could share her journey on her blog and collect readers and be an inspiration.
Mentioning that seeing her M1 Finance account grow, Roger thinks it would be useful to set up a system around that kind of excitement for continued encouragement.

To watch the video highlights, click on ChooseFI.com/249.

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248 | You Are More Than Your Financial Capital | Laura Oldanie Aug 31, 2020

What does it look like when you are invested in building wealth, environmentalism, and sustainability? How do you combine raising your net worth while optimizing these other areas of your life? You build a holistic approach to the different types of capital.
Laura learned about the different forms of capital through her experiences with permaculture, which is a design science that looks to nature as an example of a closed-loop, no waste system.
Her introduction to permaculture through her gardening interest in sustainability. The permaculture flower has seven petals, with each petal representing concepts like Land in Nature, Stewardship, and The Built Environment. In addition, 12 guiding principles can be applied to each petal, such as Catch and Store Energy. She became intrigued after learning permaculture could be applied to more than just the landscape.
Not pleased with the investing options available through her employer's retirement account investment options, Laura turned to the permaculture space around money, investing, and finances.
Financial permaculture got off the ground around 2010-2013 where permaculture principles were applied to finances.
While much of the thinking done early on has been at the macro level, Laura has been working to bring it down the personal finance level.
Socially responsible investing is something that Laura does at the local level. She looks for investment opportunities in her local community, like purchasing a share in a local permaculture farm. But she recognizes local investments are few and far between, so she casts a wider net for meaningful investments outside of the stock market, like with the American Homeowner Preservation Fund which buys distressed mortgages and works to keep people in their homes.
While it may sound like a charitable contribution, Laura is investing in these opportunities through her retirement account. Though she recognizes these investments may be riskier, she believes there are far greater risks to the environment with many other investments.
Anyone considering investing in this way should do their due diligence and understand the risk before investing in a non-diversified portfolio.
Laura tries to mitigate this risk using multiple forms of capital as a safety net.
In addition to financial capital, there are material capital, intellectual capital, experiential capital, social capital, living capital, cultural capital, and spiritual capital. Other forms of capital sometimes discussed are time, health, and attention.
Within social capital, Laura discussed communities helping each other through mutual aid societies and time banks and how they have been springing up since the pandemic began.
Understanding these various forms of capital has shaped how Laura thinks about retirement planning. Financial capital is how we access the other forms of capital and they are where our quality of life comes from. Laura has been thinking about how to build and develop her other forms of capital so that she will require less financial capital.
Long-term care is extremely expensive as is the insurance to cover it. Building social capital is one way to defer those long-term care costs but may not be a substitute for everyone.
Thinking about some of these issues as a system versus a singular item brings more joy and focuses on quality of life instead of a number on a spreadsheet.
Jonathan acknowledged that when describing his investor policy statement, he was looking at his options through the various forms of capital he has not solely his net worth and that changes his investing approach.
Laura believes it's not necessary to have balance across all forms of capital. It may be more effective to specialize in several and looks to our networks, friends, family, and community to find who is rich in the areas where we are deficient.
Though asset mapping, some communities may be poor in financial capital, yet wealthy in other forms which, when tapped, can be converted into financial capital.
These forms of capital are not limited to homeowners. They are still accessible to those living a nomadic life, who are renting or not thinking about retirement yet. Community gardens, volunteering, and online communities are several ways to build capital.

To watch the video highlights, click on ChooseFI.com/248

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247 | Zach and Marilyn Talk Real Estate Investing | Paula Pant Aug 28, 2020

Continuing the financial independence case study series, Households of FI family, Zach and Marilyn are a married couple with young kids. Using Dave Ramsey's baby steps, they no longer have any debt but have wondered what to do next. Looking to explore investing in real estate, ChooseFI connected them with real estate expert, Paula Pant.
Though Zach and Marilyn once lived below the poverty line, they managed to pay off their debt, including student loans, a car loan, credit cards, and medical debt. During that time, they gained a little experience with buying and selling property. Since that time, Marilyn has gone back to work and their income almost doubled.
Having earned a profit on some previous homes they flipped after living in and renovating them, it's encouraged them to use the skills they've acquired on future investment properties.
Where they currently live in Cedar City UT, the market is a bit inflated and are concerned about the 1% rule where monthly rent should equal 1% of the total purchase price.
Paula explains that if a property rents for 1% of the purchase price, that is 12% per year at full occupancy. Since it is estimated that operating costs will be roughly 50% of the monthly rent, 6% of the purchase price is what if leftover as an unleveraged dividend on the property. Assuming no increase in the value of the property, but keeps pace with inflation, that's roughly another 3% based on historical averages, the property gives a 6% dividend and 3% inflationary increase, for a total return of 9%. It is a rough way to determine if a property is worth looking into further
Exceptions for the 1% rule of thumb may be made when operating costs are expected to be less than the 50% average, such as if property taxes are extremely low or if it is a newer home.
Other exceptions to the 1% rule can also be made when buying a multi-unit home where you live in one unit and rent out the others. In those cases, personal criteria for where you want to live also come into play and the 1% rule can be thrown out the window.
Because property values are a little inflated where they live, Zach and Marilyn are interested in buying properties in markets where they don't live. Paula believes that it's easier being an out-of-state landlord because it forced her to treat it like a business when she couldn't just pop over and take care of issues herself.
Zach and Marilyn were also interested in what criteria they should consider regarding properties that are fixer-uppers versus being move-in ready. Paula says what she teaches the students in her real estate investing course includes a graph where on the x-axis represents a spectrum with “You Find Deals” at one end and “Your Create Deals” at the other. On the ends of the Y-axis are “Move-in Ready” and “Not Even Habitable”. There are tradeoffs between effort and reward, but as effort increases, generally, reward increases as well. If you don't have time to devote to the hardest quadrant of the graph, then it might be easier to find deals in the move-in ready quadrant instead.
Since they are debt-free, Marilyn I feeling anxious about taking on additional mortgage debt, but Paula views the mortgage from an investment property differently from personal property. An investment property mortgage is a tool that allows you to cashflow positive.
Paula doesn't have a specific price range she won't exceed but says there is a balance of equity to debt that she tries not to exceed across her entire rental property portfolio. She tries to keep a 50/50 ratio where for every $1 of debt she has, she also has $1 of equity which is conservative by most real estate investor standards.
To ensure that enough funds are on hand to take care of emergency maintenance and other unexpected household repairs, Pauls advises having 3-6 months' worth of rent on hand to cover these expenses.
Zach and Marilyn are wondering if they should cut back on retirement investments and divert to real estate to help them acquire property faster. Paula suggests instead look at how much from their overall budget they want to save and then decide how to divide up the savings.
Considering what happened in 2008 with the real estate market, and unsure how the pandemic will impact real estate today, they are unsure when to jump in and purchase an investment property. Similar to trying to time the stock market, Paula encouraged them to look at the numbers to decide if it's a good deal right now. If in the future, the market shifts and no longer makes sense, then sell. When this is done repeatedly over a lifetime, you win.
Since they have done well in the past with live-in flips, Paula cautioned them to be aware of their emotions and to be careful about separating what they want from a home they live in with what makes sense as a good investment.
A 1031 Exchange allows you to avoid paying capital gains when selling an investment property and reinvest the proceeds from the sale within certain time limits in properties of like-kind and equal or greater value.
Living in a property for two of the last five years qualifies you for a capital gains exclusion of up to $250,000 or $500,000 for couples filing jointly.
Brad has been an out-of-state landlord like Paula for more than a year. He purchased a couple of properties in Georgia for $50-55,000. The market rent for these properties is about $750-800 so Brad is above 1% at around 1.4%.

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246 | Overcoming and Battling Financial Abuse | Rachael Partleton Aug 24, 2020

What happens when someone is using your finances to prevent you from making decisions that are in your own best interest? What does financial abuse look like and can you reclaim your financial life? Rachael shares her story and how she's become passionate about economic empowerment.
Although she had a successful career and what appeared to be a healthy relationship from the outside, Rachael found herself in a relationship with someone who walked all over her.
Slowly over time, Rachael's boyfriend began chipping away at her confidence and inserting himself into her finances, putting his name on all of the bills, linking bank accounts, opening joint accounts, and pushing to have his name on the mortgage to the property she had purchased on her own.
Your instincts and feelings are worth paying attention to. Had Rachael explored her feelings more, she believes she would have listened to them better. Not knowing what's happening with your bills or financial accounts is a red flag. Sharing accounts is only good when both people are acting in good faith.
The drive to take over control finances may start as a result of insecurity in the relationship, but it can take a turn and be used against the other person as a form of punishment.
Rachael describes financial abuse as a psychological assault where your trust is so broken that it can damage the relationship you have with yourself. If you aren't making decisions willingly and freely, you are giving up bits of your power and it's then a slippery slope to giving away too much.
There's nothing inherently wrong about merging finances but there's needs to be a conversation it.
After 10 years, the relationship ended, Rachael found herself in a legal battle over the property, was experiencing PTSD and unable to do her job.
The systemic assault she experienced during the relationship and in its aftermath destroyed her trust in society. All the business, government, legal, and social systems she sought help from had failed her.
The bright light in her experience is that Rachael has now become an agent of change to have new laws passed in the UK to help other victims of financial abuse.
Learning to tell her story and fight for herself was incredibly difficult, but also a skill-building endeavor. She channeled her anger, found her voice, and learned how to speak clearly and with confidence.
Always a fan of journaling and understanding the power of words, Rachael started a blog as an unfiltered outlet for her feelings. The positive feedback she received from family and friends also helped build her confidence.
Not wanting to return to teaching, Rachael attended one of Alan Donegan's PopUp Business Schools to possibly become a personal fitness trainer. When hearing about using your experiences to build an authentic business, Rachael realized she wanted to help other victims of financial abuse.
Rachael wants to become a consultant to banks, housing associations, and lawyers and tell them what they need to do to stop financial abuse from happening, protecting both themselves and their customers.

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245 | Matt & Megan get International Tax Tips | Dave McKeegan Aug 21, 2020

To watch the video highlights, click on ChooseFI.com/245

Matt and Megan are a dual military family on the path to FI. Matt is serving in the UK Royal Navy and Megan is serving in the US Navy, making their tax situation unique.
Currently, they plan on having Matt get a green card, allowing him to work in the US, while Megan finishes out her Navy career to earn a pension and then move abroad in about seven years.
Once Matt gets his green card, he will be taxed like any other US citizen. He owns an apartment in the UK that he would like to sell. Dave McKeegan notes that since there is no wealth tax in the US, Matt will not be taxed on his assets, but once he gets a green card or meets the substantial presence test, he would potentially have to pay capital gains tax on the sale of the apartment so it would be best to sell it first.
Due to the Foreign Account Tax Compliance Act (FATCA), every bank around the world is required to report US citizen account information to the US Treasury Department. US citizens are also required to report accounts on a FinCEN 114 form and assets held overseas are subject to capital gains taxes.
Dave wanted Matt and Megan to be aware that mutual funds held outside of the US can often be viewed as passive foreign investment companies. Any investments overseas should be US compliant as well. Vanguard has a number of retirement funds that report correctly to both the US and UK and are exempt from taxes.
Matt and Megan are interested in how the can best take advantage of the US tax system and simplify it for themselves. To reduce their taxes, Dave advises Matt to physically give up his green card once they move abroad so that they can place money in international investments under Matt's name and he won't be taxed like he is a US citizen anymore.
As long as their assets are less than $2 million, leaving the US will not trigger an exit tax.
Depending on income, where their assets are held, and if they have children, their US tax filing status may change to take advantage of higher exemptions, but they should sell the UK property before filing “married filing jointly” as long as he doesn't already meet the substantial presence test.
Matt may qualify for a tax-free UK pension when he retires from the Royal Navy but if he has a green card, he will need to pay US taxes on his pension until they move overseas and he gives up the green card.
Dave McKeegan has moved around the world and is currently living in Costa Rica. Costa Rica is one of a number of countries that only tax sources of income earned within that country. As his business is located in the US, Dave pays US taxes. If Matt and Megan were to move to a country with tax laws like Costa Rica, they would not pay income tax to that country on their UK and US pensions.
Other countries have income tax rules that depend on how much time is spent in that country. So it's possible to slow travel or split the time spend in a few countries and not pay income tax to the countries visited.
Countries that tax their citizens living abroad are the United States, Eritrea, and North Korea.
While there may be tax advantages to living abroad and giving up US citizenship, Dave has decided that he benefits of retaining citizenship far outweigh the benefits of not paying taxes and the risk of not being let back into the country.
Wyoming is an easy state to incorporate a business and there's no state income tax. If also living outside of the US for 330 days a year, you can be eligible for the foreign income exclusion and exclude $100,000 of income from taxation.
Alternatively, Matt could set up an online business overseas and pay Megan a salary up the foreign income exclusion amount and also avoid self-employment taxes.
Living in Costa Rica, Dave's children have been learning through a combination of the local international school, homeschooling, and the Simple StartUp entrepreneurial program he's been running for a home school group. He is able to have conversations about business and money with his kids about money and they have become interested in investing as well.
Though Dave and his family primarily rented homes while moving around the world, the rental market in Costa Rica made conditions more advantageous to buy. When they travel back to the US for extended periods, they can rent their home in Costa Rica out.
Diversification doesn't just apply to a stock portfolio. You can be diversified in passports, income streams, and properties from other countries. Spreading your bets around different countries can make sense.
Dave discussed some of the issues expats have opening local bank accounts as US citizens. Matt and Megan have been using Revolut to more easily move money around between countries.
Opening up a Roth IRA is something Dave suggested Matt and Megan could do to stash away some tax-free money and have ready access to the principal later.
Health care coverage overseas was another area Dave suggested they look into, although health care is frequently more affordable overseas. International policies are always an option to look into as well. The policy Dave has for his family cots $7,000 a year and provides coverage everywhere except for the United States.
Another helpful tip Dave has for expats is to always have a couple of different bank accounts to avoid issues with expiring cards or the need to access larger amounts of cash.
Opening and using US credit cards and travel rewards is also possible overseas. Dave uses a company called Mailbox Forwarding to receive and scan his mail.
It can be a hassle to try and say you aren't a resident of some states anymore avoid paying state income taxes. South Dakota does not have a state income tax and only requires residents to be there one day per year to maintain residency.

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244 | Mentorz : A Second Generation FI Success Story | Ava and Don Wettrick Aug 17, 2020

Who do young people look up to today? The lifestyles marketed on MTV and social media not exactly something to aspire to, but where can the next generation go to find something different?
Inspired by the work of her father, Don Wettrick, and feeling like she needed to take charge of the issue, Ava Wettrick created MentorZ, a platform designed to introduce great people to Generation Z.
As a young child, Ava thought her dad was the smartest guy in the world. It wasn't until she got older that she realized he wasn't necessarily smart, he just read a lot. She's witnessed his transition from teacher to owning a non-profit and embrace the experience.
Being a voracious reader, it didn't take much pushing from her dad to begin consuming content from the likes of Tom Bilyeu, Simon Sinek, and Victor Franco and having an influence over her peers.
Since getting to know several entrepreneurs, Ava questioned whether or not college is worth the time and expense. She was surrounded by highly successful people telling not to go to college, but she is attending college and has found it helpful to have the financial support of her parents and scholarships while growing, learning and choosing the information she wants to consume.
Don acknowledges that for some majors, college is still relevant, and for those who have the money should go, but have a plan. He thinks the best thing students can do is to start doing the thing they might love and begin to shadow people to determine if it is a good fit.
Majoring in entrepreneurship at Ball State, Ava is learning about accounting, marketing, running a business, and being a CEO which has only accelerated her drive to make the podcast a success and provides quality content and great messages.
Interviewing guests for her podcast has been a significant personal learning experience and changed her perspective on the power of an interview. She waited a year to release the episode recorded with Tom Bilyeu because she feared it wasn't good enough and yet people think it was one of her best. And following her interview with Dov Baron, she received feedback that he believed in her and wanted to mentor her.
While there are ways of doing things to make them appear more important than they are, “fake it til you make it” can have its drawbacks. Don believes humility can be key when it comes to Imposter Syndrome.
When it comes to second generation FI, Don says it happens by osmosis. His kids have been raised under a frugal lifestyle.
Since his last appearance on the podcast, Don left his teaching job to take the non-profit to the next level, growing both the team starting chapters in co-working spaces and tech hubs.

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243 | Corinne and Jillian Johnsrud | Households of FI Aug 14, 2020

Progress Coach, Jillian Johnsrud, meets with Households of FI member, Corinne, to review the two exercises designed to help her understand how she can prioritize her life to focus on the things that matter the most.

After taking a quiz to reveal which of the Four Tendencies she is, Corinne discovered that she is an Upholder. She has many things that she would like to do but struggles with feeling guilty about doing non-work related things that are important too.
Corinne would like to find more time for meditation and develop better awareness and confidence with her finances.
Though Corinne always felt like she was decent with money, beyond investing in a 401k, she would like a better understanding of what her baseline expenses should be and where she can make improvements with a budget and investments.
When it comes to learning, Corinne feels that she learns best by practice, repetition, and talking through things, but would love to make her processes as automated as possible. Jillian suggested that Corinne may learn about investing best through a book club, class, or mastermind group.
Her goals for mediation are to be more in tune with her body, realize when she needs to step away from work and take a break plus try and have mediation become a part of a daily routine.
Jillian divides priorities into two categories, the things we want to make progress on and the action steps to take. There is a huge return on the investment when taking those actions, but things that help with progress are foundational and make life easier.
As habits develop in stages, Jillian suggests Corinne first try to find a place in her life for a two-minute meditation habit, before getting started and trying to optimize it. This will help test out when mediation might be appropriate and get through the learning curve. Then focus on any hesitation resistance to doing those two minutes.
Creating habits can be more successful when added to an existing routine or by creating a prompt.
Corinne would also like to make progress in her career. She needs to stay focused better during working hours to make the most out of them and make progress with communication and executive presence.
Exercise, eating healthy, and socializing with friends are other areas where Corinne would like to reduce friction and make doing them easier.
Since starting a new habit is so difficult, Jillian likes to divide the year up into six-week chunks and focus on one of the new habits in each of the six weeks. The synergy between the habits begins to build momentum.
For the exercise “Challenges and Motivations”, Corinne felt making partner at work was her biggest motivation because she values being part of a team or community and having a sense of belongingness. Other motivations she has are security and autonomy.
To increase Corinne's sense of her top three motivations, she feels that she hasn't done well lately with maintaining relationships and connections with people. Jillian likes to use her understanding of the five love languages as a framework to strengthen relationships with others.
The biggest challenge to meeting the goal of becoming partner is balancing the expectations of her time at work with her personal life which is why she would like to be more focused at work. Additionally, she would like to stop comparing herself to others at work and concentrate on what works for her.
Options for tackling challenges include self-correction, finding a more helpful perspective, and problem solve it. In Corinne's case, Jillian thought she would benefit by actively looking for leaders who were more like her rather than the hard-charging partners in her workplace.
Regarding Corinne's challenge with setting boundaries at work with her time, people who work for her sometimes find it difficult to connect with her. Jillian suggested creating a specific time or better communicating what times she is available.

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242 | The Financial Gym | Shannon McLay Aug 10, 2020

For those on the path to financial independence, finance, fitness, and life optimization all intersect.
During her career in the banking industry, Shannon McLay found it didn't work for the people she wanted to help. She set out to use her skill set and training to change the coaching industry and founded Financial Gym.
Even for those who not physically fit, they know what it looks like and there are many resources available for achieving it. The path the financial independence is similar in that it is a long journey. You have to work up to it, will experience setbacks, and take breaks.
Much like diets, budgets don't work long-term. Making lifestyle changes is the key to success.
At the Financial Gym, clients hit 90% of the goals set for themselves by examining their money behaviors and constantly working to figure out what's will work for them.
The two largest emotions people have regarding money are fear and shame. Once people drop these highly charged emotions and understand the financial numbers don't define them, they can break through and embrace moving forward.
After turning 30, Shannon realized she didn't want the life she was leading. Her life's trajectory changed when she came to understand that to have long-term sustainable happiness is to help other people and not expect anything in return.
During her work as a financial advisor for Merrill Lynch, she discovered she enjoyed helping out her pro bono clients far more than the wealthy ones. It allowed her to see there was a need for a service where it didn't matter what you looked like financially, you just needed to get financially healthy.
Much like going to the gym to get healthy, her concept of a financial gym was a place to meet with financial trainers for a monthly membership fee.
Following the model of H&R Block, Shannon believed people wanted to meet with a financial advisor face-to-face. She was advised to prove the model would work before looking to raise money.
Experimenting with different plans and prices, she had great success with her first clients increasing their net worth. Clients wanted to keep working with her, but she was running out of money to continue investing in her business. When a former boss invested $100,000 in her concept, she rebranded using the gym concept.
The physical environment of the Financial Gym created a community where clients had a shared goal and a safe space to talk about money.
Shannon was able to scale her business by developing a training program and teaching compassionate and empathetic people what she knew.
Those contemplating becoming an entrepreneur should ask themselves, “Am I a good problem solver?” because running a business is like solving a lot of word problems.
No one's financial situation is so bad that it can't be fixed. The trainers at the Financial Gym have seen and fixed it all.
On average, clients pay $70-80 a month for membership, but they offer a six-month money-back guarantee which they've never needed to pay out on. The average client increases their net worth by $2,500, increases their credit score by 60 points, and negotiates a $5,000 a year salary increase within the first 3 months of membership.

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241 | Troy & Lindsay Calculate Their FI Number with Brad | Households of FI Aug 07, 2020

The Troy and Lindsay are new on their journey, finding FI several months ago after making a budget and realizing they had no money left over at the end of the month. Compared to other systematic approaches to becoming debt-free, they felt FI was creative and adaptable to a variety of lifestyles.
The first step Troy and Lindsay took was to determine where all their money was going using a budget tracker, which enabled them to cut monthly expenses and continue to do the things they enjoyed doing, like going to happy hours.
Except for their mortgage, the Troy and Lindsay have paid off all of their debt, contribute to a 401k, and have an $80,000 net worth, including a $15,000 emergency fund.
Though they both enjoy their jobs now, Lindsay is a teacher, so Brad suggests considering her pension's “worth vs worth it” as Grumpus Maximus has discussed on the podcast and in his book, The Golden Albatross.
Use the 4% rule of thumb to determine what your net worth should be to reach FI. Using the 4% rule, you can withdraw 4% of the balance each year to live off of and reasonably expect it to last for the rest of your life. To calculate your FI number, multiply your annual expenses by 25. For every $100 cut from your monthly expenses, is $30,000 less you need to save to reach FI.
Troy and Lindsay recently refinanced their mortgage from 4.75% to 3.25% and are investing the $500 a monthly savings into 401ks and Roth IRAs.
When wondering about paying off their mortgage, Brad acknowledges that there is a real psychological satisfaction the goes along with it, but he looks at it in this way. The interest portion the payment is the true expense, while the principal payment is a reallocation of net worth going from your checking account into home equity.
Brad suggests taking the time to document a year's worth of expenses and look at different scenarios for what life may be like in retirement to come up with a range of possible annual expenses.
When calculating their FI number, Troy realized the number was double if he included a mortgage payment. Brad suggests looking at the mortgage amortization schedule for prepayment options.
Food expenses have been cut with a goal of $500 a month. Lindsay checks to see what's in the pantry before shopping and meal preps one day a week to avoid eating out, but she isn't penny-pinching when it comes to quality.
Removing mortgage and childcare from their expenses, Troy and Lindsay's monthly expenses are about $3,500 per month, which puts their FI number at just around 1 million dollars.
They are currently saving roughly $50,000 per year to add to the $80,000 net worth but are wondering where they go from here.
Brad acknowledges there can be a lot of initial excitement upon finding FI and making changes, but then there can be a lull. He challenges Troy and Lindsay to figure out what they want their lives to look like rather than compare their FI journey to anyone else's.
It's important to understand that life is fluid and wants may change over time. Test small before making big decisions or changes. Flexibility and communication with your partner are critically important pieces of the process.
The next steps Troy and Lindsay will be taking are to build a spreadsheet with different retirement expenses scenarios and talk about what they really want their lives to look like.
Anyone interested in FI should understand that you don't need to be perfect, but you do need to get started.

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240 | The Budgetnista Aug 03, 2020

For video highlights from the episode, check out choosefi.com/240.

Tiffany Alice was raised by a financially savvy father who taught her how to save and handle her money, but a few poor choices in her 20s destroyed her finances. Since overcoming her mistakes, she's made it her mission to help others fix their finances.
After falling victim to a con man, Tiffany found herself more than $35,000 in credit card debt. Though her pre-school teacher salary wasn't a high income, she was saving aggressively by living simply and transferring her credit card debt to 0% interest cards.
During the 2008/2009 recession, she was $300,000 in the hole between credit card, student loan, and mortgage debt when she was laid off from her job.
Seeing that she was struggling less with financial hardship because of the lesson's Tiffany had learned from her father, friends began to ask for help with their finances. She liked teaching and turned teaching financial education into a business.
Through her business, she can make good money, help people, and still have happiness and time. She feels that she is living her life in complete alignment. Even with a high net worth, she and her husband continue to live frugally and without debt.
One of the lessons her mistakes taught her was to get straight to a solution sooner rather than allow shame or ego to delay it. It's important to acknowledge your role in mistakes, take full responsibility, and then get over it.
Teaching financial education was the easy part. Tiffany found that her own financial struggles allowed her to relate to people. She doesn't consider herself to be a guru but an educator helping her girlfriends along.
Tiffany built her business from one-on-one financial coaching to a following of over half of a million people in her Dreamcatcher community.
Volunteering in her community and utilizing her network, in addition to social media helped get her business off the ground.
When followers from outside her local area began to request her course, Tiffany scaled the business to reach anyone, no matter where they lived, with her Live Richer Challenge. When it launched, 10,000 people had signed up.
To date more, than 900,000 have taken one or more of her Live Richer challenges.
Along the way, Tiffany learned about blogging, video editing, affiliates, monetization, and self-publishing.
A good teacher has to be constantly learning, listening, and reading, but what made Tiffany a really good teacher comes from being a pre-school teacher, she honestly cares about her students.
She's taken her skills in leading and caring about students as a teacher and applied them to her business, making it an amazing place to work where her employees feel looked after and cared for.
Tiffany has authored a pre-financial education book, Happy Birthday Mali More, aimed at teaching pre-school age children a lesson about the things that matter most.

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Free 4 week trial with Stamps.com! Click on the microphone and enter code “ChooseFI”.
Earn $1000 or more with ChooseFI's 3-card cashback strategy
Live Richer Challenge
Live Richer Academy
Happy Birthday Mali More by Tiffany Aliche

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239 | The Gatekeepers are Gone Jul 31, 2020

Don't believe that you need anyone's permission for access anymore. The gatekeepers are gone and the ability to access knowledge on-demand and create a business model around it has never been easier.
The realization that you have autonomy gives you control over your life is transformational. You can control your expenses and reach FI. You can choose to pursue interest-led learning and follow a passion. There is no more "they" you need to seek permission from.
MK didn't need the permission of traditional publishing's gatekeepers, instead, she learned how to self-publish.
Employers are beginning to value skills over degrees. Google recently announced they are offering 3 new online certificate programs in skill areas critically important to the tech industry. Google is even offering 100,000 need-based scholarships for individuals enrolled in the certificate programs.
Start building a talent stack around what interests you.
Bradley Rice from episode 117 is building BradForce Academy, a course designed for people in a Salesforce career looking for more freedom and flexibility.
Working just 20 hours a week as a Salesforce Freelance Administrator in 2019, Bradley Rice made $225,000 using skills he had picked up during his lunch hour.
From the community, Chris shared a big win on the ChooseFI Facebook page. He and his wife maxed out her Employee Stock Purchasing Plan and used to it help pay off her student loans once it reached its maturity to qualify as long-term capital gains. For the first time in 20 years, they feel like they are winning the game.
Josh challenged Brad to share what his Todoist organized life looks like. In it, Brad has everything scheduled, from chasing his home air filters every 2 months to passport renewal reminders to subscription cancelation dates.
Brad's taking his Red X month off from work, but ChooseFI episodes will continue with amazing pre-recorded shows, including an episode with The Budgetnista, Tiffany Aliche, and deep dives with the Households of FI.
Jonathan issues a challenge to start on the path to FI. Gather a small group of friends and go through a 6-8 week transformation together starting September 1.

Resources Mentioned In Today's Conversation

238 | Half Price College with the Millionaire Educator Jul 27, 2020

Gerry Born, the Millionaire Educator, joins the show to talk about strategizing college via online classes, dual enrollment, and CLEP Testing.

For more information, visit the show notes at https://ChooseFI.com/238

237 | Build Your Talent Stack Jul 24, 2020

Today we talk about asset allocation versus information allocation. What are you doing with all the information you are taking in? Are you making intentional steps to build your talent stack? Tune in to today's Friday Roundup!

For more information, visit the show notes at https://ChooseFI.com/237

236 | The Intersection of Fitness and Financial Independence Jul 22, 2020

The guys talk about their journey toward financial independence and fitness and how closely the two correlated to one another.

For more information, visit the show notes at https://ChooseFI.com/236

235 | How I Built a 7-Figure Online Course | Jacques Hopkins Jul 20, 2020

Jacques Hopkins shares how he built an online course and some of the skills he had to learn along the way. If you have been sitting on an business idea you definitely want to listen to this episode!

For more information, visit the show notes at https://ChooseFI.com/235

234 | What's in Your Index? Jul 17, 2020

Brad's children learn a valuable lesson on running a business and some of the associated difficulties. As Tesla becomes a potential candidate for the S&P500, the guys take the opportunity to touch a bit on questions you might have about this aforementioned index. And the pronunciation of our Brand: ChooseF.I. or ChooseFI? Or is there even a potential dark horse in this race as a third alternative? Find out on today's Friday Roundup!

For more information, visit the show notes at https://ChooseFI.com/234

233 | You Need to Start Building Your Network | Jordan Harbinger Jul 15, 2020

Jordan Harbinger shares his tips and techiques for managing and expanding your network

For more information, visit the show notes at https://ChooseFI.com/233

232| Raising a Money-Savvy Family for Next-Generation Financial Independence | Doug Nordman and Carol Pittner Jul 13, 2020

Doug Nordman and Carol Pittner Join the show to talk about how to raise your children to think about the potential of money in a positive way

For more information on the show and for shownotes visit https://www.choosefi.com/232

231 | Are You Too Good for Casserole? Jul 10, 2020

Jonathan makes a bet, the secret to wealth lies in the Casserole, and the guys share their thoughts on college planning

For more information, visit the show notes at https://ChooseFI.com/231

230 | College Hacks from the ChooseFI Community Jul 08, 2020

Jonathan, Brad, and MK have collected tips, comments, hacks, and feedback from the community for crushing college debt free.

For more information, visit the show notes at https://ChooseFI.com/230

229 | Managing Stress by Leveraging FI | The Fioneers Jul 06, 2020

Corey and Jess from The Fioneers join the show to tell share their story of getting on the same page financially. They talk about incremental freedom, habitual spending triggers, and stress management.

For more information, visit the show notes at https://ChooseFI.com/229

228 | Overcoming the Debilitating Fear of Public Speaking Jul 03, 2020

The guys talk about their strategies for public speaking, and Brad shares how podcasting has played a key role in learning to play into his strengths in order to overcome his fear of public speaking.

For more information, visit the show notes at https://ChooseFI.com/228

227 | The Golden Albatross | Grumpus Maximus Jul 01, 2020

Grumpus Maximus has partnered with ChooseFI Publishing to release his book The Golden Albatross. While pensions can seem like a dry topic, Grumpus has created an in-depth guide to the subject while simultaneously making it enjoyable to read. Today Grumpus is on the show to talk with us a bit about his story.

For more information, visit the show notes at https://ChooseFI.com/227

226 | Trip Of A Lifestyle To All US National Parks Jun 29, 2020

Lauren and Steven Keys from Trip of a Lifestyle join the show to share their story of frugalality to live a life doing the things they love.

For more information, visit the show notes at https://ChooseFI.com/226

225 | The Power of the Staycation Jun 26, 2020

Today we're talking about staycations, traveling the world ~$1,200/month, and community wins!

For more information, visit the show notes at https://ChooseFI.com/225

224 | Introducing our Households of FI Jun 24, 2020

Today we are introducing the second 4 households in our on-going case study project where we follow 8 households on their journey towards FI. Each household is just starting their journey to FI, and each of which ultimately have the same goal: achieving FI.

For more information, visit the show notes at https://ChooseFI.com/224

223 | Slow Traveling the World the FI Way | Nomad Numbers Jun 22, 2020

The Nomads join the show to talk about their system for perpetual travel, and all the nuances that go into a nomadic lifestlye.

For more information, visit the show notes at https://ChooseFI.com/223

222 | The Mid LIfe Crisis Jun 19, 2020

A lot of people think FI is about having as much money as possible, but that is a fundamentally flawed supposition. Jonathan and Brad saw plenty of "successful" people in the workforce who were miserable. Today we talk about the Oh-so-dreaded mid life crisis, and what FI is really about.

For more information, visit the show notes at https://ChooseFI.com/222

221 | Introducing our Households of FI Jun 17, 2020

Today we are introducing the first 4 households in our on-going case study project where we follow 8 households on their journey towards FI. Each household is just starting their journey to FI, and each of which ultimately have the same goal: achieving FI.

For more information, visit the show notes at https://ChooseFI.com/221

220 | Fix My 403b | Nancy Bachety Jun 15, 2020

Nancy Bachety worked as a school teacher for and was deeply dissatisfied with the 403b retirement fund that was being offered to teachers. On this episode Nancy shares her story and how she fixed her 403b account.

For more information, visit the show notes at https://ChooseFI.com/220

219 | I was Laid Off, Now What? Jun 12, 2020

Today we talk about using skills to pivot when laid off using MK as a fantastic case study of this concept. Additionally we have some announcements and awesome community wins in the mailbag today.

For more information, visit the show notes at https://ChooseFI.com/219

218 | COVID Budget Awakening | Brandi Sellers Jun 10, 2020

Brandi joins us and shares her story on another case study episode. After sharing her finances, Brandi sees the big difference that small changes can make for retirement.

For more information, visit the show notes at https://ChooseFI.com/218

217| How to Save Thousands in US Federal Taxes Using Geo-arbitrage | David McKeegan Jun 08, 2020

David from Greenback Expat Tax Services explores the basics of taxes for expats. Learn about the rules surrounding expats taxes and strategies to consider.

216 | How to make FI more inclusive | With Chris Browning of Popcorn Finance Jun 05, 2020

Chris Browning joins the ChooseFI podcast to have a vital conversation about systemic racism in America and what we in the FI community can be doing to help.

For more information, visit the show notes at https://ChooseFI.com/216

215 | Your Self-Worth is Not Your Net Worth | Audrey Bellis Jun 03, 2020

Audrey Bellis, joins us for a Wednesday case study. Audrey shares with a us a story of empowerment and self-motivation.

For more information, visit the show notes at https://ChooseFI.com/215

214 | How to Rock a Blog Without The Painful Learning Curve | Ashley Barnett Jun 01, 2020

Today Ashley Barnett from the ChooseFI team joins the show to share her story and teach us how to make a blog that stands out!

213 | Is The Retirement Saver's Credit Worth It In 2020? May 29, 2020

Jonathan makes one the Barrett Top 50 for some "FI-ne Dining", the guys detail this little known tax credit, got some community Feedback, Brad was on Jillian's latest episode of Everyday Courage, and ChooseFI case Studies will be coming regularly to a podcast player near you.

For more information, visit the show notes at https://ChooseFI.com/213

212 | Kicking off our FI Case Study Series | Kashia Palmer May 27, 2020

Today Jonathan and Brad are doing a case study with Kashia Palmer. Kashia shares her story about getting out debt and has the guys look through her budget to find out her time frame for financial independence.

211| How to Negotiate a Higher Salary without Burning Bridges | Financial Mechanic May 25, 2020

Jessica, The Financial Mechanic, shares how she created a ten-year path to financial independence through a career shift and salary negotiations.

For more information, visit the show notes at https://ChooseFI.com/211

210 | Little Known Roth Hacks May 22, 2020

Today on our mailbag episode we have exciting news from MK, information on 401K's to Roth IRA's, news from Choosefi Publishing, an alternative summer camp possibility, and more from our community

209 | What Happens When the Paycheck Stops? - Keys to a Successful Retirement with Fritz Gilbert (Part 2) May 20, 2020

Fritz from Retirement Manifesto is back to dig a bitter deeper into the minutiae of the numbers behind retirement, and the use of the bucket strategy.

208 | There Is No Failing With FI | Bianca DiValerio May 18, 2020

Bianca, a flight attendant, reached Financial Independence in her late 30’s after many bumps in the road.

She shares her story of financial resiliency.

Bonus With Everyday Courage May 16, 2020

Today we have a bonus episode featuring an episode from Everyday Courage with Jillian Johnsrud and JL Collins.

Figuring out how to invest is a challenge for many, including Jillian. By the time she and her husband started investing, they had paid off all their debt and saved up a lot of cash. Like many people, Jillian waited far too long to start investing. She was scared, intimidated and didn't really understand it. JL Collins says this is all too common, and he is here to make investing simple.

207 | 2020 Health Challenge May 15, 2020

Today is community mailbag, and we are taking a look into some corrections, criticism, and feedback from previous episodes . Next we have a Frugal Win of the Week from Will for his brother Matt. Before all that though, Jonathan talks about his 2020 health challenge, and the power of incremental progress.

206 | What Happens When the Paycheck Stops? - Keys to a Successful Retirement with Fritz Gilbert May 13, 2020

Fritz from Retirement Manifesto joins the show to talk about the mentality you should have when entering retirement.

205 | Tax Loss Harvesting with Sean Mullaney May 11, 2020

Today Sean Mullaney is back to talk about 5 money moves to make during a financial crisis, and digs deep on what it looks like to make back money on a realized loss when you panic sold.

204 | Join the Rebellion May 08, 2020

On today's episode we have the long awaited Barrett top 50 recipes(well, top ~30), the guys talk about ideas for Mother's day, the new Podcast for all things business called the Rebel Entrepreneur has launched, and a thought provoking mailbag question

203 | Real Estate Investing During a Recession or Financial Crisis with Coach Carson May 06, 2020

Coach Carson comes on the show to provide some insight on the current real estate investing market, and what to look for when starting out.

202 | Student Loan Planner with Travis Hornsby May 04, 2020

Travis Hornsby is back on the show to share a bit of knowledge on his specialty: Student Loans. Travis digs into some details that could potential save you thousands of dollars on your student loans.

201 | The Rule of 55 May 01, 2020

It's mailbag time, and today we answer a question about the rule of 55 and how some are able to access their 401k penalty free at 55. We also have a segment with Jillian from Everyday Courage

200 | Stock Fundamentals with Brian Feroldi Apr 29, 2020

On a recent episode we gained a better understanding bonds. Today Brian Feroldi who writes for the Motley Fool joins us to give us a deeper understanding for stocks and how they are valued.

199 | Making Portfolio Adjustments with Big ERN Apr 27, 2020

Big Ern joins ChooseFI again this week to discuss making necessary adjustments to your portfolio when the economy takes a downturn.

198 | Living Your Story Apr 24, 2020

Today is community mailbag where the team answer questions and listens to feedback from you our listeners, but first they talk about Big ERN's optimism.

197 | Introducing: Casual Wednesdays Apr 22, 2020

After 40 days of quarantine, we are beginning to adjust to this new normal. We're talking groceries, working remotely more permanently, creative socializing in quarantine, and finding your lost money.

196 | Have We Seen the Bottom? An Economic Outlook with Big ERN Apr 20, 2020

Big Ern joins the show to talk about possible scenarios for the recession we find ourselves in, and markers to look out for on the horizon for the recovery of our economy.

195 | The Rebel Entrepreneur - What Can You Build? Apr 17, 2020

Brad and Jonathan talk with Alan Donegan about possible ways for how you can pivot during this time. Additionally, listen until the end for the special announcement from Alan and the ChooseFI Team.

194 | The Role of Bonds in a Portfolio | With Frank Apr 16, 2020

Frank Vasquez joins the show to talk about portfolio diversification with bonds, and the important value that they can add.

Other ChooseFI Media:

Support our YouTube channel by subscribing at: https://www.youtube.com/choosefi?sub_confirmation=1

Listen to other episodes from our Financial Resilience Daily Show at: https://www.choosefi.com/financial-r/

Dig deeper into Financial Independence by reading our Blog at: https://www.choosefi.com/all-articles/

About us:

Everything we do, we do to help you slash your expenses, crush debt, and build ways to earn a living remotely by starting online businesses. Then we help you invest in the safest way we know how, despite the ups and downs of the stock market.

We take the hits, so you don't have to, because ultimately, we want you to become financially resilient during these trying times, and get you started on the path towards Financial Independence.

Please SUBSCRIBE and enable notifications to see NEW EPISODES.

CONNECT:

►OUR WEBSITE: https://choosefi.com

►BUSINESS EMAIL: feedback@choosefi.com

193 | The Market Always Goes Up Apr 15, 2020

We all know the market always goes up, but it is still nice to get that reminder. Brad and Jonathan talk about the market's history and how time in the market is always better than timing the market.

Links from the show:

https://www.choosefi.com/cit

https://www.choosefi.com/M1

Our Podcast: https://www.choosefi.com/episodes/

Financial Resilience Daily Show: https://www.choosefi.com/financial-r/

Blog: https://www.choosefi.com/all-articles/

About us:

Everything we do, we do to help you slash your expenses, crush debt, and build ways to earn a living remotely by starting online businesses. Then we help you invest in the safest way we know how, despite the ups and downs of the stock market.

We take the hits, so you don't have to, because ultimately, we want you to become financially resilient during these trying times, and get you started on the path towards Financial Independence.

Please SUBSCRIBE and enable notifications to see NEW EPISODES.

CONNECT:

►OUR WEBSITE: https://choosefi.com

►BUSINESS EMAIL: feedback@choosefi.com

192 | Freelancers and the Paycheck Protection Program with Travis Hornsby Apr 14, 2020

Travis Hornsby from the Student Loan Planner joins the show to talk about the Paycheck Protection Program for small business and independent contractors.

More resources:

Our Podcast: https://www.choosefi.com/episodes/

Financial Resilience Daily Show: https://www.choosefi.com/financial-r/

Blog: https://www.choosefi.com/all-articles/

About us:

Everything we do, we do to help you slash your expenses, crush debt, and build ways to earn a living remotely by starting online businesses. Then we help you invest in the safest way we know how, despite the ups and downs of the stock market.

We take the hits, so you don't have to, because ultimately, we want you to become financially resilient during these trying times, and get you started on the path towards Financial Independence.

Please SUBSCRIBE and enable notifications to see NEW EPISODES.

CONNECT:

►OUR WEBSITE: https://choosefi.com

►BUSINESS EMAIL: feedback@choosefi.com

191 | K-12 Financial Literacy Curriculum Apr 13, 2020

Financial Educators Rob Phelan, Danielle Mendonsa, and Mandy Bert have created a financial literacy program for anyone and everyone. Today they join the show to talk about its inception and release.

190 | The Sandwich Generation with Jean Chatzky Apr 10, 2020

When it comes to talking about money and the future with both your parents and kids, tactfulness is everything. Jean Chatzky joins the show to help us navigate these strange waters.

189 | Jonathan's Investor Policy Statement Apr 09, 2020

Jonathan outlines his investor policy statement, and his process for how he thought it out.

188 | Stay the Course | Rick Ferri Part 2 Apr 08, 2020

Rick Ferri joins Brad and Jonathan back on the show to teach us how to make a cake. During this process you may just learn a thing about asset allocation. Whatever you decide to do with today's knowledge just remember, stay the course.

https://www.choosefi.com/start

Learn More about Rick Ferri

https://rickferri.com Follow on Twitter @rick_ferri https://www.bogleheads.org

187 | Distance Education Apr 07, 2020

Mandy shares how teachers are pivoting in this difficult time, and gives her advice for teachers and parents who are thrust into this new era of learning. Additional information is provided for accessing Accidental Homeschooler and K-12.

186 | Multiple Generations Under One Roof With Financial Tortoise Apr 06, 2020

Tae, from the Financial Tortoise, shares his money story from the perspective of the sandwich generation.

For more information, visit the show notes at https://ChooseFI.com/186

185 | Adapting to the New Normal with Dominick Quartuccio Apr 03, 2020

What is Normal? Normal is the baseline our minds establish for as a reference point for everything that comes into our lives. This baseline is not immutable however. Dominick joins us on the show today to talk about some of these ideas in these very "un-normal" times.

https://www.choosefi.com/

184 | Stimulus Package Breakdown: The Cares Act Apr 02, 2020

Sean Mulaney weighs in on the 2020 Stimulus Package via voicemail, and gives some pro tips for your filing process. Jonathan and Brad share some of their insight on the Cares Act as well.

https://www.choosefi.com/start

183 | Is The FIRE Movement Over? Apr 01, 2020

Jonathan and Brad Discuss the implications of the pandemic on the Financial Independence Movement. Jonathan and MK discuss Skill Stacking & Brad shares what his idea of the perfect education would look like

182 | Escape from Wall Street | Rick Ferri Part 1 Mar 31, 2020

What does investing in Index funds look like in 2020? Rick Ferri from the Boglehead Podcast comes on the show to talk about his story, and how he left Wall St to invest in Index funds.

https://www.choosefi.com/start

Learn More about Rick Ferri:

https://rickferri.com/ Follow on Twitter @rick_ferri https://www.bogleheads.org/

181 | The Creative Penn | Joanna Penn Mar 30, 2020

Joanna Penn shares her story of building multiple income streams and becoming a writer.

She outlines how anyone with the passion to be creative can do the same.

For more information, visit the show notes at https://ChooseFI.com/172

180 | The Art of the Pivot Mar 27, 2020

Looking at this through the lens of opportunity we explore how businesses are pivoting in difficult times.

https://www.choosefi.com/start

179| Accidental Homeschooler Mar 26, 2020

Continuing on this daily podcast journey we talk about what happens when you life decides it is time to home school for a bit

https://www.choosefi.com/Vincent https://www.choosefi.com/start https://www.choosefi.com/CIT

178 |Important Tax Update Mar 25, 2020

Continuing the daily episode series, Jonathan and Brad talk about some tax info from Sean Mulaney.

https://www.choosefi.com/start

177 | This is Not a Drill Mar 24, 2020

In light of current events, We are temporarily switching to a daily show to support the community. Access Community, Resources and More

https://www.choosefi.com/start

https://www.choosefi.com/CIT

176 | Flexible Spending Rules For Early Retirees Mar 23, 2020

Michael Kitces joins the show to share his research on flexible spending rules as they apply to Financial Independence.

His call for flexibility could impact your path to FI by several years.

For more information, visit the show notes at https://ChooseFI.com/171

175 | Social Distancing with Style Mar 20, 2020

Be Creative With Your Social Distancing Resources for Accidental Home Schoolers Opportunity for People with Student loans

Crossfit at home: https://wodprep.com/free-workouts
Find a new healthy routine, don’t mope
Walk (with distancing),
Driveway happy hour

Student loans

FEDERAL: No interest at this time
PRIVATE: Refinance with Credible : https://www.choosefi.com/credible/

Michael Kitses interview on Monday - very timely

Accidental Homeschooler - our resources are out, we will have more with Vincent next week

https://www.choosefi.com/credible https://www.choosefi.com/start

174 | Looking Out For Our Community Mar 19, 2020

In light of current events, We are temporarily switching to a daily show to support the community.

Is your Emergency Fund in place

https://www.choosefi.com/CIT

Our Favorite Taxable Investment Tool

https://www.choosefi.com/M1

Access Community, Resources and More

https://www.choosefi.com/start

173 | Emergency Fund Mar 18, 2020

In light of current events, We are temporarily switching to a daily show to support the community. Is your Emergency Fund in place?

https://www.choosefi.com/CIT

https://www.choosefi.com/start

172 | Bear Market Mar 17, 2020

Bear Market vs Recession and why you can't panic sell

To get started on your path to Financial Independence go to https://www.choosefi.com/start

171 | Financial Resilience Mar 16, 2020

In light of current events, We are temporarily switching to a daily show to support the community

170R | A Capital Gains Case Study for 2020 Mar 13, 2020

Learn more about the implications of capital gains and the mechanics of tax optimization for these gains.

We use two case studies to help you realize the power of optimizing your capital gains strategy.

For more information, visit the show notes at https://choosefi.com/170R

170 | The Simple Startup Mar 09, 2020

Rob Phelan, author of The Simple Startup joins the show to share more about this new resource that can help anyone learn how to build a business.

Plus, he shares the path of creating a financial literacy course for all grade levels that brings in the concepts of Financial Independence.

For more information, visit the show notes at https://ChooseFI.com/170

169R | Prepared, Not Scared Mar 06, 2020

With a week of market scares, this episode revisits the importance of being prepared, not scared.

Plus, you’ll hear about some exciting announcements from the ChooseFI community.

For more information, visit the show notes at https://ChooseFI.com/169R

169 | A Purple Life | Early Retiree Case Study Mar 02, 2020

The anonymous blogger behind, A Purple Life, joins Brad and Jonathan to share her journey to financial independence.

With the helpfulness of anonymity, she shares exact numbers including her income, salary negotiations, expenses, and more.

For more information, visit the show notes at https://ChooseFI.com/169

168R | Prioritize Your Priorities Feb 28, 2020

With the principles outlined in Make Time, you have the potential to dramatically improve your life in a short period of time.

Plus, hear an inspiring FI story and tips for teachers.

For more information, visit the show notes at https://ChooseFI.com/168R

168 | Make Time Feb 24, 2020

John Zeratsky, author of Make Time, joins Brad and Jonathan to share actionable tips to build a framework that cuts through your perpetual state of busyness.

For more information, visit the show notes at https://ChooseFI.com/168

167R | Should I Refinance My Mortgage? Feb 21, 2020

Dropping mortgage rates prompt a conversation that explores the pros and cons of refinancing your mortgage at a lower rate.

Plus, Steve Chen from NewRetirment joins the show to share the comprehensive retirement planning tools that his company has to offer.

For more information, visit the show notes at https://choosefi.com/167R

167 | Learn Hustle Grow Feb 17, 2020

Rob and Reshawn from Learn Hustle Grow discuss combining their finances and building a real estate portfolio.

They talk about money mindsets, building a life together, paying down their home, working in sales and more.

For more information, visit the show notes at https://choosefi.com/167

166R | It's a Small World After All Feb 14, 2020

Find out more about the upcoming ChooseFI documentary series, Andrew and Zach's experiments in financial independence, and community corrections.

For more information, visit the show notes at https://ChooseFI.com/166R

166 | Modern FImily With Court Feb 10, 2020

Court joins the show to share how she and her wife tackled six figures of student loan debt and achieved financial independence in their early 30s with a family.

For more information, visit the show notes at https://ChooseFI.com/166

165R | Do You Realize What You're Doing Feb 07, 2020

Answers to several reader questions about investing efficiently for your financial freedom. Learn more about low-cost broad-based index funds or if you should max out your 401k early.

Recent market volatility has provided an opportunity to test your investment resolve. Any low-cost broad-based index fund is a solid investment strategy, VTSAX is not the only option.

Understanding the difference between Roth vs traditional options can help you plan your tax-efficient retirement.

Fee-only advisors that act as fiduciaries in every area can be helpful. However, many financial advisors are not fiduciaries and have an assets under management fee structure.

For more information, visit the show notes at https://choosefi.com/165R

165 | Do You Need a Budget? | YNAB Feb 03, 2020

The founder of YNAB, Jesse Meacham, shares his story about:

Finding your "non-negotiable"
Introducing your spouse to FIRE
Do you really need a budget?

For more information, visit the show notes at https://ChooseFI.com/165

164R | What are the 5 Love Languages Jan 31, 2020

Learn about the five love languages and how they can help you communicate with your partner better.

For more information, visit the show notes at https://ChooseFI.com/164R

164 |Our Rich Journey | Amon & Christina Browning Jan 27, 2020

Amon and Christina join the show today to share their journey to Financial Independence as two federal employees with young children.

The couple was able to retire early in just eight years!

For more information, visit the show notes at https://choosefi.com/164

163R | Roth IRA Conversion Ladder Case Study Jan 24, 2020

An updated case study of the Roth IRA conversion ladder and a challenge for the community are some of the topics that Brad and Jonathan tackle today.

For more information, visit the show notes at https://www.choosefi.com/163R

163 | Finding FI | Liz and Braden Jan 20, 2020

Liz grew up with a single mom that struggled financially after getting divorced. Due to that, she had to learn how to budget at a very young age. She helped her mom pay off some debt over a period of years.

Braden had a completely different relationship with money. He grew up in a well-off family, so he never had to worry about money. He did get a job at 16 because his parents wanted him to learn the value of hard work.

Liz and Braden share their story of:

• Landing over $100k in scholarships • World Travels • Finding FI • Staying at Home

For more information, visit the show notes at https://choosefi.com/163

162R | There's Water In The Cup Jan 17, 2020

Half full? Half Empty? Ehh... There's some water in the cup. Medical bills are never fun, but at least you met your deductible... at the very end of the year. Brad and Jonathan discuss building credit from ground zero, and reflecting a bit on Gretchin Rubin's "The 4 tendencies". In addition, we share a segment with Larry Hagner from the Dad Edge Alliance discussing the importance of financial intimacy. This is your Friday Roundup!

For more information, visit the show notes at https://choosefi.com/162R

162 | The 4 Tendencies and FI Jan 13, 2020

Although finding the path to FI can be exciting, it can be frustrating to have difficulty communicating this vision to your family and friends.

Gretchen Rubin joins the show to shed some light on the four tendencies or people and how to communicate with each tendency.

For more information, visit the show notes at https://ChooseFI.com/162

161R | Reignite Jan 10, 2020

Welcome to the first Roundup of 2020! Brad and Jonathan share exciting announcements like:

• Launch of Everyday Courage by Jillian Johnsrud • FI101 and the ChooseFI International Foundation • Updates To The Tax Code

For more information, visit the show notes at https://choosefi.com/161R

161 | Money Letters 2 My Daughter | Jackie Cummings Koski Jan 06, 2020

Jackie Cummings Koski shares her story of a single mom that made FIRE a reality. She proves that there is no one way to achieve FI.

The goal can be accomplished by people from all walks of life and Jackie offers a unique perspective of FI.

For more information, visit the show notes at https://choosefi.com/161

160R | Everyday Courage Jan 03, 2020

The ChooseFI family is launching a new podcast today. Everyday Courage is officially live!

Please take a moment to subscribe to Jillian Johnsrud's new podcast https://www.choosefi.com/everyday-courage

160 | End of Year Wins 2019 Dec 30, 2019

As we ring in the new year, it is time to celebrate our community’s wins.

This episode is dedicated entirely to the wins that have happened throughout the community this year. The goal is to congratulate everyone on a fantastic year and inspire the community to continue to achieve amazing things next year.

For more information, visit the show notes at https://choosefi.com/160

159R | From Solopreneur to Entrepreneur Dec 27, 2019

It's the last Friday roundup of the decade! Learn how to level up your skills with:

Everyday Courage
New Year's Resolutions
Building A Business with Intentionality

For more information, visit the show notes at https://ChooseFI.com/159R

159 | The Business Coach Approach to Double Your Revenue | Jaime Masters Dec 23, 2019

Jaime Masters has been a part of the personal finance space since 2011. It all started with a desire to share her story.

Listen as she talks about time management, building a business, sales and marketing, and more.

For more information, visit the show notes at https://choosefi.com/159

158R |Your Real Hourly Wage and Savings Rate Calculation Dec 20, 2019

Learn how to calculate your real hourly wage and savings rate. We discuss Kim’s story shared on Monday’s episode, meal planning, and more.

For more information, visit the show notes at https://choosefi.com/158R

158 | Real Hourly Wage | The Frugal Engineers Dec 16, 2019

Kim from The Frugal Engineers shares her journey and the importance of determining your real hourly wage.

Kim’s story goes from Boarding School to College to a real hourly wage to quitting her day job and building a business.

For more information, visit the show notes at https://choosefi.com/158

157R | The Compound Interest Of Self Improvement Dec 13, 2019

After learning more about habits with James Clear this week, Brad and Jonathan discuss the compounding interest of self improvement and turning intention into action.

What’s covered in today’s show:

• Building Habits • Identity Statements • Find Your Tribe

…and more.

For more information, visit the show notes at https://choosefi.com/157R

157 | Atomic Habits | James Clear Dec 09, 2019

James Clear, author of Atomic Habits , shares his story. The conversation dives into the difference between systems and goals.

How To See Through The Short-Term For The Long-Term
The Compounding Effect
How Identity Drives Your Habits
Goals, Systems, and more

For more information, visit the show notes at https://choosefi.com/157

156R | Coming Back From A Gap Year Dec 06, 2019

A gap year might seem unthinkable for some but Noah and Becky share exactly how they navigated their gap year. Plus, Brad and Jonathan discuss emergency funds and your risk tolerance.

For more information, visit the show notes at https://www.choosefi.com/156R

156 | Retire Before Mom And Dad | Rob Berger Dec 02, 2019

Rob Berger, founder of Dough Roller and Retire Before Mom and Dad, talks about the simple math of early retirement and more essential FI lessons that are important to talk about.

For more information, visit the show notes at https://ChooseFI.com/156

155R | Year End Tax Planning Nov 29, 2019

Sean Mullaney joins the show to discuss year-end tax planning.

He goes into deductions, self-employment income, and how to get the most from your deductions.

For more information, visit the show notes at https://ChooseFI.com/155r

155 | Boundaries As A Single Parent On The Path To FI | Leslie Tayne Nov 25, 2019

Leslie Tayne opens up about her journey as a single parent, financial problems in her first marriage, and how to move forward from debt.

For more information, visit the show notes at https://choosefi.com/155

154R | Inception Nov 22, 2019

Tim and Amy from Go With Less join Brad and Jonathan to discuss their unique travel strategy. Plus, tips on how to design your dream life.

Some of the topics in today’s show:

House Sitting With Tim And Amy
Build Your Dream Life
FI 101
and more

For more information, visit the show notes at https://www.choosefi.com/154r

154 | Hacking The FAFSA | Brian Eufinger and Seonwoo Lee Nov 18, 2019

Graduating from college debt-free can accelerate the path to FI dramatically. Brian Eufinger and Seonwoo Lee share their best tips on hacking the FAFSA on today's episode.

For more information, visit the show notes at https://choosefi.com/154

153R | Navigating Health Insurance Nov 15, 2019

On today’s Friday Roundup, Jonathan's shares his experience with health coverage after his wife welcomed a new baby into their family. We also discuss Healthshare plans and Healthcare After FI.

For more information, visit the show notes at https://choosefi.com/153R

153 | RIP Medical Debt | An Inside Look At Debt Collection And Forgiveness Nov 11, 2019

Medical debt has the power to seriously hurt your financial future. Many Americans are faced with unavoidable medical debt that has crippled their financial situation.

RIP Medical Debt is a nonprofit working to forgive medical debt for pennies on the dollar. Today on the show, they share their background and the amazing progress they've made.

For more information, visit the show notes at https://choosefi.com/153

152R | Can I Retire Yet | A Case Study With Early Retirement Now Nov 08, 2019

Big ERN comes on the show today to break down the numbers of Becky’s retirement plan.

He works through their real numbers to determine how solid their retirement plan is.

For more information, visit the show notes at https://choosefi.com/152R

https://choosefi.com/becky

152 | Is it too late? | Becky Heptig Nov 04, 2019

Becky Heptig shares her personal story to show that FI is an attainable goal at any age.

It is an encouraging story because it shows no matter what age you find FI at, it is not too late to change your life for the better.

For more information, visit the show notes at https://choosefi.com/152

151R | Fit Waist Fat Wallet Nov 01, 2019

Using David Hauser’s framework from last week of decision making through split testing, Brad and Jonathan look at their sleep, fitness, and diet.

For more information, visit the show notes at https://choosefi.com/151R

151 | Unstoppable | Creating A Framework For Decision Making With David Hauser Oct 28, 2019

As a successful start-up founder, David Hauser felt mercilessly driven to create success through extreme measures.

Today, he opens up to Brad and Jonathan about his drive to succeed and how he has applied an experimentation framework to his health and wellness.

For more information, visit the show notes at https://choosefi.com/151

150R | Goals vs Systems Oct 25, 2019

Building your blueprint to FI starts with the basics. A simple thing like tracking your spending can set you on a path that will change your life forever.

Today, we get back to FI 101 and uncover the stark difference between goals and systems.

For more information, visit the show notes at https://choosefi.com/150r

150 | Accountability | Diania Merriam Oct 21, 2019

Diania Merriam discusses accountability, shifting perspectives, and community.

She has a great perspective on building community and life with balance.

For more information, visit the show notes at https://ChooseFI.com/150

149R | Whole Life Insurance Oct 18, 2019

How to break Old Navy and cockamamie life insurance schemes are just two of the topics Brad and Jonathan cover in today's episode.

For more information, visit the show notes at https://ChooseFI.com/149r

149 | On Trajectory With Tyson Koska Oct 14, 2019

Tyson Koska shares his On Trajectory tool and what led him to his own path of Financial Independence.

Brad and Jonathan discuss how Tyson got started with FI and how On Trajectory tools cover net worth tracking and digital options.

For more information, visit the show notes at https://choosefi.com/149

148R | FI101 | Expense Ratios and House Hacking Oct 11, 2019

Craig Curelop, author of The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom, shares his house hacking strategies.

We also discuss Expense Ratios and the new book, ChooseFI: Your Blueprint to Financial Independence.

For more information, visit the show notes at https://ChooseFI.com/148R

148 | Struggle | The Psychology of Poverty with Andréa Motenko Oct 07, 2019

Andréa has committed her life to social studies and taking FI information to people experiencing poverty. She grew up in a similar situation.

At age seven, Andréa saw her first violent murder. Throughout her childhood, being raised by a single mother, she struggled with food insecurity and housing insecurity. However, she was also a student in the elite private school system, which led to an Ivy League education.

After coming such a long way, she has a unique perspective on the relationship between poverty and reaching FI.

For more information, visit the show notes at https://ChooseFI.com/148

147R Contributions, Corrections and Criticisms Oct 04, 2019

Compounding vs total return, envelopes vs simplifying your finances, and the potential value you could get from working with a “assets under management” financial advisor.

Also, Tori Dunlap reached her goal to save her first $100k by age 25 on the day her interview aired!

For more information, visit the show notes at https://choosefi.com/147r

147 | Negotiate Your Salary With Tori Dunlap Sep 30, 2019

Tori Dunlap about starting a business as a kid and tips for negotiating your salary.

She is on a mission to help women earn their first $100k.

For more information, visit the show notes at https://ChooseFI.com/147

146R | Fork in the Road Sep 27, 2019

This week’s Friday Roundup includes a discussion with Chuck Jaffe about why he can’t be part of the FIRE movement because he has no plans to retire.

Also, a recap of Shannyn’s story from Monday and ChooseFI Book Launch Parties.

For more information, visit the show notes at https://choosefi.com/146R

Bonus Episode - Guided Meditation for Stock Market Volatility With JL Collins Sep 25, 2019

A Guided Meditation for When the Stock Market Is Dropping

The market is plunging. You’re starting to panic. You want to hit the “sell” button! DON’T! Tune into this relaxing meditation, and let the soothing voice of JL Collins help you embrace this wonderful market cycle

We interviewed JL Collins on episode 19 of our podcast

https://www.choosefi.com/019-jlcollinsnh-stock-series-part-1/

Check out JL Collins Website JLcollinsNH where you can read the entire Stock Series

https://jlcollinsnh.com/stock-series/

and his book the Simple Path to Wealth

https://www.amazon.com/gp/product/1533667926/

146 | Embrace The Suck With Shannyn Allan Sep 23, 2019

Shannyn Allan joins us to discuss "embracing the suck"--when life just doesn't go as planned.

Listen to Shannyn's stories about graduate school, calling off a wedding, and wire fraud during the purchase of her first home.

...and how she found FI at the right time in her life.

Listen to the whole story at https://ChooseFI.com/146

145R | Stuck Sep 20, 2019

A discussion of what to do with a windfall, a review of turnkey real estate investing, and a meditation for stock market investors when the market is falling.

For more information, visit the show notes at https://ChooseFI.com/145R

145 | Turnkey Real Estate Investing and How to Build a Team With Paula Pant Sep 16, 2019

Paula Pant of Afford Anything returns to dive deeper into real estate investing. In this second conversation, Paula covers turnkey, deal syndication, and building a team.

For more information, visit the show notes at https://ChooseFI.com/145

144R | Guard Rails and Dumpster Fires Sep 13, 2019

A recap from Jonathan and Brad's visit to FinCon, FI Military, YNAB, and "what if my finances are like a dumpster fire?".

For more information, visit the show notes at https://ChooseFI.com/144r

144 | Junior Achievement: 100 Years Of Financial Education With Crystal Law And Laura Goodman Sep 09, 2019

Crystal Law, Director of Financial Literacy Experiences, and Laura Goodman, VP of Volunteer Engagement join us to discuss Junior Achievement.

For more information, visit the show notes at https://choosefi.com/144

143R | Is This the Top? Sep 06, 2019

As most have probably seen, the news is calling for a recession soon. Specifically, Peter Schiff, a prominent economist, is warning of an impending financial disaster. However, this market volatility is nothing new.

Join us today as we talk about Market Volatility, going Beyond FI, and Andrew Luck Embraces FI?

For more information, visit the show notes at https://choosefi.com/143r

143 | Beyond Financial Independence With Edmund Tee Sep 02, 2019

Edmund Tee talks about reaching FI and the goals of teaching more people worldwide about Financial Independence.

For more information, visit the show notes at https://choosefi.com/143

142R | Envelope Overwhelm Aug 30, 2019

How to simplify personal finance and discussing Paula Pant’s take on real estate from Monday’s show.

Personal Finances Made Simple
Jonathan’s Budget Evolution
How ChooseFI Makes Money

For more information, visit the show notes at https://www.choosefi.com/142r

142 | Real Estate Investing Strategies with Paula Pant Aug 26, 2019

Paula Pant discusses real estate as a path to FI as Brad shares his biggest financial mistake of his life - a speculative property in North Carolina.

For more information, visit the show notes at https://choosefi.com/142

141R | Translating FI for the UK Aug 23, 2019

David Sawyer comes back on to discuss the UK path to FI, and Jonathan makes a big personal announcement.

For more information, visit the show notes at https://ChooseFI.com/141r

141 | Reset: An Unconventional Guide for Getting Unstuck with David Sawyer Aug 19, 2019

David Sawyer released his book, Reset.

The book is aimed at helping people who feel stuck in their careers as well as an optimization strategy for Financial Independence in the UK.

For more information, visit the show notes at https://choosefi.com/141

140R | The Real Cost Of A Financial Advisor Aug 16, 2019

Diving into the costs of a financial advisor and Nick from Mapped Out Money returns to discuss college hacking.

For more information, visit the show notes at https://choosefi.com/140r

140 | FI Lifestyle Before FI Number With Nick True Aug 12, 2019

Nick True from Mapped Out Money talks about designing an FI lifestyle before reaching an FI number.

Currently, Nick and his wife live in an Airstream trailer with the flexibility to live wherever they want to be.

For more information, visit the show notes at https://ChooseFI.com/140

139R | Time is on Your Side Aug 09, 2019

Last week, Jonathan ended up at the DMV on a Friday afternoon with a crazy wait time. What should have been a quick trip turned into an ordeal worth avoiding.

Today Jonathan and Brad discuss:

How to Reclaim Your Time
Side Hustling through the Secondary Market
and how Sunny funded a Roth IRA for his child

For more information, visit the show notes at https://ChooseFI.com/139R

139 | Reaching FI With Real Estate | Sunny Burns Aug 05, 2019

Sunny and his wife are 88.92% of their way to FI at only age 28 while living just 15 minutes outside of New York City.

How did they do it?

They share ow to pay for collect, the Department of Defense SMART Scholarship, car flipping, and more.

For more information, visit the show notes at https://choosefi.com/139

138R | My Daughter's Mindset Aug 02, 2019

Brad and Jonathan talk about Brad’s daughter's mindset, plus a review of Monday's episode with Anthony.

For more information, visit the show notes at https://choosefi.com/138R

138 | How To Get Paid To Go To College | Anthony Gary Jul 29, 2019

Anthony talks about the strategy he used to go to college for profit in his senior year.

The strategies he outlines could be used as early as freshman year to make college a profitable experience.

For more information, visit the show notes at https://choosefi.com/138

137R | An Evening of Financial Independence Jul 26, 2019

Brad and Jonathan discuss the Richmond Screening Of Playing With FIRE, FI 101, and how to be a storyteller.

For more information, visit the show notes at https://ChooseFI.com/137R

137 | Rebuilding a Life You Love with Christine Jul 22, 2019

Christine and her husband, Jack, rebuilt a life that they love after an 85% reduction in pay 6 weeks into their marriage.

For more information, visit the show notes at https://choosefi.com/137

136R | Silver Spoon or Skills Jul 19, 2019

Jonathan and Brad discuss a case study on funding a child's Roth IRA and listen to feedback from the community.

For more information, visit the show notes at https://choosefi.com/136R

136 | How To Fund Your Child's Roth IRA with the FI Tax Guy Jul 15, 2019

A dive into taxes with Sean Mullaney, the FI Tax Guy, who talks about FI tax-efficient strategies and career paths in accounting.

For more information, visit the show notes at https://ChooseFI.com/136

135R | The Plot Thickens Jul 12, 2019

Another look at whether you should pay off your mortgage or invest, plus:

Spam Caller Life Hack
Life Hack for Small Business Owners
Achieving FI on a Modest Income

For more information, visit the show notes at https://www.choosefi.com/135r

135 | How to Leverage A Modest Income to FI with Joel from How to Money Jul 08, 2019

Joel from How to Money talks about how he has pursued FI on a relatively low income, how he is reaching FI with five rental properties, and working on the Clark Howard Show.

For more information, visit the show notes at https://choosefi.com/135

134R | Quit Like a Millionaire | Kristy Shen and Bryce Leung Jul 05, 2019

Kristy Shen and Bryce Leung talk about their new book, Quit Like a Millionaire. Plus, Brad and Jonathan give updates on solar panels and YNAB.

For more information, visit the show notes at https://choosefi.com/134r

134 | Early Retirement Case Study With Route To Retire Jul 01, 2019

Jim from Route To Retire talks about about life after retirement and geo-arbitrage. His path to FI didn’t start with a community, it began when he was testing for Y2K bugs with Quicken.

Don’t know what we’re talking about? You’ll just have to listen to find out.

For more information, visit the show notes at https://www.choosefi.com/134

133R | Should I Pay off My Mortgage Early Or Invest Jun 28, 2019

Possibly the most burning questions of FI:

Should you Invest or Pay off your Mortgage early?

We go through the numbers in today's show.

For more information, visit the show notes at https://choosefi.com/133R

133 | How To Get Started Making Money With Airbnb | Zeona McIntyre Jun 24, 2019

Zeona McIntyre built a successful AirBNB business and shares her best strategies, including

Buying Properties
Scaling the Business
and Best Practices for an AirBNB Business

For more information, visit the show notes at https://ChooseFI.com/133

132R Insurance | A Framework Jun 21, 2019

Find out what kinds of insurance you actually need and where to find them.

Jennifer Fitzgerlad, the CEO of Policy Genius walks us through everything you need to know.

For more information, visit the show notes at https://ChooseFI.com/132R

132 | Downsizing Your Life And Financial Coaching With Lisa Duke Jun 17, 2019

Lisa Duke talks about her mindset shift and turning liabilities to assets.

On today's show:

Second Home--Asset Or Liability?
Action Steps To Renting Out Your Home
Getting off the "hedonic treadmill"

...and more.

For more information, visit the show notes at https://ChooseFI.com/132

131R | Building a Brick in Your Wall Jun 14, 2019

A recap of our conversation with Mr. Money Mustache and Mr. 1500. Plus, Jonathan and Brad answer listener questions about compounding and drawdowns during retirement.

For more information, visit the show notes at https://ChooseFI.com/131R

131 | Mr. Money Mustache & Mr. 1500 | Past, Present, Future Jun 10, 2019

Mr. Money Mustache and Mr. 1500 discuss community building and second generation FI.

For more information, visit the show notes at https://ChooseFI.com/131

130R | Simplifying The Ultimate Buy And Hold Strategy With M1 Finance Jun 07, 2019

Brad and Jonathan just returned from the world premiere of Playing with FIRE in San Diego.

They discuss future showings (visit choosefi.com/tugg) and then get into the ultimate buy and hold portfolio strategy.

For the entire show notes, go to https://choosefi.com/130R

130 | Paul Merriman | The Ultimate Buy and Hold Portfolio Jun 03, 2019

Today we talk to Paul Merriman. The goal is to contrast the "Simple Path to Wealth Approach" with the "Ultimate Buy and Hold Portfolio."

Paul is a proponent of the Ultimate Buy and Hold strategy and a legend in this space. The insights Paul provides about this strategy are priceless.

For more information, visit the show notes at https://choosefi.com/130

129R | Focused Work Ethic May 31, 2019

Earlier this week, Liz from Chief Mom Officer explained how she leveraged her work ethic and will to succeed into a successful six-figure career. Today we dig deeper into the work ethic topic with John, a 24 year old currently making 6-figures.

We also announce our newly created Travel Rewards Course.

For more information, visit the show notes at https://choosefi.com/129r

129 | Breaking the Glass Ceiling | Liz, Chief Mom Officer May 27, 2019

Liz from Chief Mom Officer.org talks about working moms building careers from the ground up.

In this episode we learn:

⁃ How To Grow Your Salary ⁃ Figure Out What You Should be Paid ⁃ Work Hard Strategically ⁃ How To Negotiate

For more information, visit the show notes at https://choosefi.com/129

128R | Zone of Awareness May 24, 2019

Multi-level marketing, side hustles, energy audits, and expanding your "Zone of Awareness" -- all in today's Friday Roundup! For more information, visit the show notes at https://choosefi.com/128r

128 | Building Your Suit of Armor on the Path to FI | Alan Donegan May 20, 2019

Alan Donegan joins us to discuss leveraging the power of FI to pursue your dreams with the ability to be free to fail.

For more information, visit the show notes at https://choosefi.com/128

127R | Cut through the Noise Diet and Debt Consolidation May 17, 2019

Gina Pogel joins us to discuss different types of debt and how to tackle them.

We also dive into tactics to optimize both your health and your debt.

The goal is to simplify your finances and your health by stacking multiple optimization tactics together.

For more information, visit the show notes at https://ChooseFI.com/127R

127 | Scott Scherr | Health Optimization May 13, 2019

Brad and Jonathan discuss health optimization strategies with Dr. Scott Sherr.

This episode is packed full of useful information, however, do not make life altering medical decisions based on this show alone.

Although we are talking to a real doctor, do not take this as medical advice. Consult with your own physician before making any major medical decisions.

For more information, visit the show notes at https://ChooseFI.com/127

126R | What is an Annuity May 10, 2019

Brad and Jonathan tackle a listener question about annuities and discuss some updates to the travel rewards landscape.

For more information, visit the show notes at https://ChooseFI.com/126R

126 | Estate Planning Wills vs Trusts | Mark Moss May 06, 2019

Last week, Brad and Jonathan talked to Chelsea Brennan about her Family Emergency Binder.

In the same theme of planning for your family's future, today we talked to Mark Moss about estate planning.

For more information, visit the show notes at https://choosefi.com/126

125R | Grocery Store Wars May 03, 2019

Ways to optimize your grocery shopping, the family emergency binder, and sharing stories from the community.

For more information, visit the show notes at https://choosefi.com/125R

125 | The Family Emergency Binder | Chelsea Brennan Apr 29, 2019

Chelsea Brennan from Smart Money Mamas and creator of the Family Emergency Binder is here to talk about her unconventional choices that led to a happier life.

For more information, visit the show notes at https://choosefi.com/125

124R | Choose FI Your Blueprint to Financial Independence Apr 26, 2019

Brad and Jonathan discuss the release date of a ChooseFI book, finding the best auto insurance rates, and Lynn Frair's path to FI.

The book, "ChooseFI: Your Blueprint to Financial Independence" will be released on October 1, 2019. The goal of the book is to outline options for your path FI. Everyone's journey will be different because the concept of FI is really based on choosing your own adventure. However, there are common threads between all of the success stories. We pull that together so that you can make your own journey a successful one.

To pre-order the book, go to https://www.choosefi.com/book

The complete show notes can be found at https://choosefi.com/124R

124 | Dirtbag Millionaire | Chris Mamula Apr 22, 2019

Chris Mamula, the "Dirtbag Millionaire," describes the mistakes he made on the way to FIRE, the challenges he facing in his early retirement, and the origin story of a book that will outline a Blueprint to financial independence based on the information shared by members of the ChooseFI community.

For more information, visit the show notes at https://ChooseFI.com/124

123R | Hail Mary FI Apr 19, 2019

Brad and Jonathan give us an update about the "Playing with FIRE" documentary, hail mary FI and how to build an escape route from the corporate hierarchy that doesn't make room for you.

For more information, visit the show notes at https://choosefi.com/123R

123 | Rich & Regular Apr 15, 2019

Kiersten and Julien from Rich and Regular talk about the specific challenges that the black community faces on their journey to FI.

Recognizing the fact that not everyone starts from the same spot is important, so we are diving deep into the differences today.

For more information, visit the show notes at https://choosefi.com/123

122R | Dividend Deep Dive Apr 12, 2019

Brad and Jonathan are joined by Brian Feroldi and Karsten from Early Retirement Now.

With the goal of gaining a deeper understanding of dividend investing, Brad and Jonathan ask the hard questions.

As the devil's advocate, they uncover more information about dividend stocks from passionate investors.

If you are ready to learn more about dividend investing, then let's dive in.

For more information, visit the show notes at https://ChooseFI.com/122R

122 | Intro To Dividend Investing Apr 08, 2019

Dividend investing has been a hotly debated topic in the FI community.

Brad and Jonathan dive into the details of dividend investing with Craig from Retire Before Dad.

For more information, visit the show notes at https://choosefi.com/122

121R | How to Get Any Job Apr 05, 2019

Brad and Jonathan sleep habits, energy efficiency, and the best ways to land a job with Chris Hutchins from Grove.

For details, visit the show notes at https://ChooseFI.com/121R

121 | Tread Lightly on the Path to FI Apr 01, 2019

Angela from Tread Lightly Retire Early has been an active member of the ChooseFI community for around two years. She has built a life that combines FIRE with sustainability.

Additionally, she is a leader that recognizes the women in the FIRE movement. Brad and Jonathan learn about Angela's journey and practical sustainability advice that could help the FI community.

For more information, visit the show notes at https://ChooseFI.com/121

120R | Find the Range Mar 29, 2019

Jonathan and Brad discuss wielding the flexibility of money, how to move to the upper end of your salary range, and hunting with eagles in Mongolia.

For more information, visit the show notes at https://ChooseFI.com/120R

120 | Your Money and Your Relationships | Jean Chatzky Mar 25, 2019

Jean Chatzky is a well-respected figure in the personal finance community.

The financial editor of the NBC Today Show and author of several books is recognized for a specialized understanding of the relationship between women and their money.

However, both men and women can learn something for Chatzky's insights.

On today's episode, Brad and Johnathan will delve into the relationships that each of us has with money.

For more information, visit the show notes at https://ChooseFI.com/120

119R | Position of Strength Mar 22, 2019

Jonathan and Brad discuss their favorite books from 2018, negotiating from a position of power, career hacking, and what they would do differently if they were recording episode 1 today.

For more information, visit the show notes at https://ChooseFI.com/119R

119 | Everything is Negotiable | Mr. Refined by Fire Mar 18, 2019

Mr. Refined from Refined by Fire has overcome a staggering amount of debt that accumulated from student loans and medical bills.

After finding the FI community, he was able to triple his net worth!

Mr. Refined talks openly about his debt, how he negotiated his way out of debt, and why he is pursuing FI.

For more information, visit the show notes at https://ChooseFI.com/119

118R | What is Socially Responsible Investing? Mar 15, 2019

Talent stacking, becoming a renaissance man, and financial infidelity: We recap Monday's show and highlight some listener comments.

For more information, visit the show notes at https://ChooseFI.com/118R

118 | From Financial Infidelity to His & Her Money Mar 11, 2019

118 | Talaat McNeely from His and Her Money talks about how his money mistakes led to financial infidelity.

Most importantly, he shares how he was able to rebuild trust with his wife Tai and successfully work towards common financial goals together.

Through Talaat and Tai’s story, you will learn practical ways to build the financial trust that many couples hope to achieve.

For more information, visit the show notes at https://choosefi.com/118

117R | Build a Portfolio Mar 08, 2019

Brad and Jonathan discuss "the Kleenex" of low-cost mutual funds, Bradley Rice's story about choosing to move towards part-time work, and make an announcement about a new voice on the podcast.

For more information, visit the show notes at https://choosefi.com/117R

117 | Making the Case for Part Time | Bradley Rice Mar 04, 2019

Bradley Rice has successfully reclaimed the hours in his day by transitioning to part-time work.

He made this unconventional choice to take back his time when his daughter was born to spend more time with her.

Bradley works 20 hours a week, while still earning a high salary. Bradley openly talks about the path that allowed him to reclaim his time and how you can recreate a similar journey.

We All Have Choices Along The Way

Each of us makes different choices throughout our lives. We do so hoping to march closer to our long-term goals. Everyone has to make choices that align with their values, so each person’s journey will be different.

Having a high paying job certainly helps you reach your FI goals, but if it's taking away time from your life, you may question its true value. In Bradley’s opinion, time is our most valuable resource because it truly is finite. Many of us would prefer to use that time to enjoy the important things in life, like our family. The pressure becomes especially noticeable if you have young kids because the time you have to spend with them while they are young is limited.

Even if you agree that that time is your most valuable resource, you may feel trapped in the mindset that there is no way to earn your current income while transitioning to part-time work. Caught between the fact that you have to work to provide for your family and the need to spend more time with them, the dilemma continues to grow more real every day.

Our guest, Bradley Rice, was faced with the same dilemma when he had his daughter. He knew that he didn't want to continue working full-time while his daughter was growing up. He needed to find a way to spend more time with her during her childhood. Bradley was able to make the switch to part-time and maintain a high salary in the process. It was an unconventional choice, but it worked out exceptionally well for his family. Let’s dive into his inspiring story!

For more information, visit the show notes at https://ChooseFI.com/117

116R | Escape Mar 01, 2019

Karen Hoxmeier joins the show to share how and why she built a coupon-sharing website, Brad and Jonathan talk about optimizing food, taxes and home insurance, and a review of Monday’s episode with Wendy Mays.

Brad and Jonathan are excited about a chicken shawarma recipe they hope Laura will add to the ChooseFI Vault soon.
Wendy, from Monday’s episode, tackled her family’s grocery bill when she started pursuing financial independence.
Food shouldn’t just be cheap; it should also be good.
What is Brad’s strategy for decreasing his phone usage and dependence?
For taxes, what matters the most is your tax liability, not your tax withholding.
While tax refunds are currently decreasing in the U.S., that’s actually because the withholding tables have changed and people are sending less extra money to the government throughout the year.
Estimating your taxes throughout the year so that your tax return is about $100 is pretty extreme tax optimization, but a minimal tax return means you’ve had access to all your money for saving and investing throughout the year, instead of loaning it to the government.
Brad signed a contract to install solar panels on his house and paid half the cost, then realized that he hadn’t contacted his home insurance company.
Wendy tackled one thing at a time, optimizing a little bit at a time, until she was saving her family $6,000 a month, without a significant decrease in lifestyle.
Spend money on what brings your life value, then cut everything else ruthlessly.
ChooseFI community member Karen Hoxmeier joins the show:
- Karen worked in a wide variety of jobs in her youth and early adulthood, until becoming a stay-at-home mom in 1994.
- In 1999 Karen started sharing coupon deals with friends, via email, until that became too taxing, and she decided to build a website.
- How did Karen learn html code to build her website?
- Karen realized she could start making money from her website when she discovered Amazon’s affiliate program.
- Karen’s advice for someone who wants to make money blogging:
- - Make content that is valuable
  - Set up an email list
  - Treat your customers like they’re your friends
- If you’re interested in an affiliate relationship, Karen recommends starting a conversation with a representative from the company.
- Companies are often willing to pay a higher commission to advertise or link with blogs or websites that will provide high-quality leads.

For more information, visit the show notes at https://ChooseFI.com/116R

116 | Adoption, FFLC & the House of FI | Wendy Mays Feb 25, 2019

116 | Wendy Mays, from House of FI, tells the story of growing her family from 4 to 8 through adoption all while moving states and changing careers, and ultimately kickstarting her family’s pursuit of financial independence.

Wendy and her family first learned about financial independence about 4 years ago.
Wendy was commuting from Phoenix, Az., to San Diego, Ca., as her husband was living in California in pursuit of a new teaching job.
Wendy now has a family of six children, four of whom are adopted.
During her husband’s job search Wendy’s law practice in Phoenix was the family’s primary income, so she made significant changes to balance keeping her job with the family’s logistical challenges, including a shift in the type of legal work she did.
In the midst of this hectic commuting lifestyle, Wendy and her husband finalized the adoption of three of their children, including a 4-day-old baby.
Once the adoptions finalized, Wendy finally moved fully to San Diego.
In March 2017, Wendy started adjusting their financial lifestyle to begin pursuing financial independence.
First step was understanding where their money was really going.
Wendy dropped her average food/grocery expenses from about $3,500 to about $1,000.
By eliminating a few unnecessary big-ticket items, and optimizing smaller expenses, Wendy cut about $6,000 from their monthly expenses.
Beginning in 2018, Wendy’s husband maxed out his savings and retirements accounts, increasing their family savings rate to about 28%.
In October 2018, Wendy transitioned from legal work in Phoenix to real estate in San Diego.
Having a large family impacts Wendy’s financial commitments:
- Larger housing expenses
- Larger vehicles – a Suburban
- Bigger clothing expenses
Financially reasonable family activities require creativity.
Currently, Wendy’s family is on a 7-year path to financial independence.
Making these changes has been really challenging for Wendy, but tracking progress and looking back is encouraging.
There are several different types of adoption
- Domestic private adoption – using courts, lawyers, very expensive
- Private international adoption – using courts, lawyers, very expensive
- Adoption via foster care – usually low cost
After adopting through foster care, there are ongoing financial assistance programs that help Wendy and her husband to offset the costs associated with raising adopted children.
Wendy is hopeful she might pay off her student loan debt in 5 years.

For more information, visit the show notes at https://ChooseFI.com/116

115R | How to Get Out of Debt Feb 22, 2019

115R | A how-to conversation about strategies for tackling consumer debt, a review of Monday’s episode with Bonnie Traux, and a few updates about the ChooseFI community.

Brad’s wife no longer working as a CPA – although she was technically laid off, she’s excited for the extra time in her schedule.
Being at FI gave Laura the ability to be happy for her previous employer and move on with a smile.
Bonnie Traux, from Monday’s episode, is an ultimate side hustler.
If you’re stuck, you’ll have to do something different if you want a different result.
Bonnie reached financial independence in about 13 years.
Before starting to save, Bonnie spent years paying down consumer debt as her husband was continuing to build it.
The journey towards financial independence doesn’t start at zero – it often starts with tackling debt.
How to tackle debt
- Use account-tracking software - examples: Mint.com, YNAB (You Need A Budget), or even Excel or a pen and paper.
- Know what’s coming in, and what’s going out.
- List out all the debts you have, their payments and interest rates.
- Reasonable interest rates are somewhere near or below 6%.
- The Debt Snowball – take all your debts and organize them from smallest balance to largest. Continue making minimum payments for all debts, and commit any extra to paying off the smallest debt. When it’s paid off, roll that payment into paying off the next smallest.
- - The Debt Snowball is a psychological win, but ignores interest rates.
- The Avalanche – the interest rate is the most important thing. Always pay toward the balance with the highest interest rate.
- The Hybrid Method – combine these two strategies to pay off a few smaller debts at first, then commit to paying toward the highest interest debt.
- You could earn more – start a side hustle, work a little extra
- A no-spend month
- Optimize regular monthly expenses
- A credit card balance transfer
- Consolidating debt
- Part 1: Know where to find your account information
- Part 2: Acknowledging that you can’t afford debt.
- Part 3: Debt Payoff Strategy
- Part 4: Creating the Margin

For more information, visit the show notes at https://ChooseFI.com/115R

115 | Poverty, Divorce and FI by 43 | Bonnie Truax Feb 18, 2019

115 | Bonnie Truax, a blogger and early retiree, shares her story of growing up below the poverty line, scraping her way out of inherited debt, reaching financial independence without knowing what it was, and understanding how to talk about money with your spouse.

Bonnie grew up with family income that was technically half of the poverty level, but always debt free.
In a town of only 35 people, W2 jobs were hard to come by, so Bonnie worked any odd job that she could find – mowing lawns, decorating cakes, roofing.
What did Bonnie do with the income from her side hustles?
Bonnie got married shortly after college and inherited significant debt.
The first step to getting out of that debt, was learning spreadsheets and prioritizing which debt she would tackle first.
Bonnie was managing thousands of dollars of debt and got back to broke, even as her spouse was actively spending and maxing out credit cards.
What is Bonnie’s financial advice for people before they get married?
Financial literacy isn’t distributed evenly throughout the country – not everyone understands how to manage finances.
Not everyone is comfortable talking about money, even with their spouse. If Bonnie could do it again, she would start by talking about fears associated with money.
When Bonnie started over she was 30, earning about $25k.
Bonnie learned IT with her free time at a reporting job, eventually becoming the manager of an IT team.
Before she got remarried, Bonnie and Trin had become very close friends at work and had already talked about finances, so she was confident about their joint approach to money as a couple.
Trouble doesn’t have to be a disaster.
Getting out of debt on a low income is possible – you shouldn’t have to eat rice and beans your whole life, but if you’re getting out of debt, you might have to them for a while.
Bonnie and her husband automated their finances and didn’t give much attention them; they found a comfortable way to live regardless of their increasing incomes.
Bonnie didn’t plan to retire, but when work became toxic, their savings gave them the freedom to leave work.
Instead of just leaving money in their savings account, Bonnie and her husband began purchasing foreclosed home and renting them out.
Without a knowledge of the financial independence community, how did Bonnie determine that she and her husband were financially ready to leave their jobs to retire?
Bonnie and Trin are traveling the world for a few years before they decide where to retire abroad.
It’s never too late to make tomorrow better.
Anything that comes into Bonnie’s blog goes to support a safehouse in Ecuador.
Fear of missing out is just an excuse; you are always choosing what you miss out on.

For more information, visit the show notes at https://ChooseFI.com/115

114R | Fine Tuning the College Equation Feb 15, 2019

114R | Brian Eufinger returns to fill the gaps and address questions from the community about PSATs and National Merit Scholars, Brad and Jonathan discuss the benefits of creating a college-hacking strategy early, and the ChooseFI community responds to Monday’s episode.

Financial independence is generally about knowing the rules and making decisions according to what you value in life.
Many colleges use an equation to award merit aid --> a specific GPA + a specific test scores = a certain amount of merit aid.
With a better strategy to studying for the SAT or ACT, even a small bump could save someone tens or hundreds of thousands of dollars.
Is it better to get a summer job, or spend the summer studying for the SAT/ACT?
With the Common Application, it’s beneficial to apply to a few extra schools because the merit aid packages available are hugely varied.
Just being aware of the rules gives you the best opportunities to succeed, and to opens up as many options as possible.
How has Brad’s mindset toward paying for college changed during the past two years of ChooseFI interviews?
A message from Paul in the Facebook group, who appreciated that Brian presented college scholarships with a realistic perspective about the challenges.
A comment from Rayanne, who shares the process her daughter is navigating as a graduating senior in California, looking for the best scholarship opportunities.
Lynn is grateful for Brian’s realistic suggestion that students don’t start studying for the SAT until the end of their sophomore year; in New Jersey even sixth graders are being asked to consider future standardized tests.
Julie messaged to remind parents that students should also study for the PSAT, as the PSAT is what determines a student’s National Merit standing.
Brian Eufinger, from Monday’s episode, returns to talk about the PSAT and National Merit Scholars:
- CLEP credits and dual enrollment are good options for high school and current college students.
- Academic Common Market – in some states, students can pay in-state costs at an out-of-state school if they’re majoring in a subject unavailable in-state.
- Making a college-transfer strategy early will help students transfer from a community college to a four-year institution without any hiccups.
- “There’s no greater financial aid than finishing in four years.”
- Bringing AP credits into college gives a student more flexibility to change majors, study abroad, work internships or co-ops, or study for post-grad tests.
- In rural areas that don’t offer as many AP courses, many states offer online AP courses.
- The reward for being a National Merit Scholar varies widely between universities, but can be as much as a full ride, books, etc.
- PSAT is offered in sophomore and junior year.
- If your sophomore student scores higher than 1300 on a PSAT, it’s a disservice to not study for the PSAT in their junior year.
- Only 50,000 students get National Merit status:
- - Top 16,000 students are awarded “semi-finalist” status
  - Next 34,000 get “commended” status
- Many campuses offer cash for participating in graduate research projects.
- Being a Resident Advisor (RA) at most schools earns you free room and board, which can be as much as $20k a year.
- Becoming an RA is typically competitive, so start planning your application earlier.
- Being an RA is potentially the biggest scholarship you can get.

The financial independence group in Scandinavia just surpassed 1,000 members.
The Houston ChooseFI Local Group is hosting Alan Donegan from the Pop Up Business School, along with the San Diego and Los Angeles local groups.
Jonathan will join the Washington, D.C., Local Group for a meet up soon.

For more information, visit the show notes at https://ChooseFI.com/114R

114 | Demystify College Admission & Aid | Brian Eufinger | Edison Prep Feb 11, 2019

114 | Brian Eufinger, co-founder of Edison Prep, dives deep into the college admissions process and explains how a student should approach grades and test scores to give themselves the best college options, and how to pay for college without collecting a huge student loan debt.

Most merit aid that students earn comes directly from the university.
Brian attended Washington University in St. Louis, earning about 2/3 merit scholarship and pieced together other scholarships and on-campus jobs to pay for his education.
Many states or schools give merit scholarships for students who earn high test scores and high grades.
Brian is surprised by the vast differences in aid packages among schools with similar academic profiles.
Many schools will offer a few high school classes in the 8th grade year.
Brian’s advice for helping students get into the best college and find the best merit aid is to sign up for challenging classes, starting in middle school if you can, earn the highest GPA possible, and find a few extracurricular activities you are passionate about.
A super high SAT score will not offset a bad GPA; you can repeat a test, but not a class from 9th grade.
The Common Application has made it more difficult for universities to evaluate an overwhelming number of applications, which is why a students’ numbers are so important when admissions officers are making initial evaluations.
Grade inflation makes it difficult to understand GPAs; your student just needs to stand out among their school peers.
Earning a “C” in their junior years is one of the bigger mistakes a student can make.
The No. 1 academic risk for high school students is over committing to extracurricular activities, including sports, when they should be focusing on academics.
Division I schools are able to give out athletic scholarships, while Division 3 schools typically don’t offer athletic aid. However, there are still options for earning scholarships at Division 3 schools for student-athletes.
Merit aid is based on evaluation of your grades, test scores, application, etc.
Need-based financial aid is based on perceived financial need.
Students don't need 1,000 hours to study for SAT/ACT tests; if they treated tests like a sport for one season, they would have all the hours they need.
The perfect time to start studying is after sophomore year, before junior year is complete.
Sophomores should make sure to take a full-length practice test, created by the actual test makers, to determine whether they’ll be more successful on the ACT or SAT.
It’s better to focus on one test than to try to be good at two.
Practice is crucial.
The best calculator for these tests is the TI-84 Plus CE, followed by a TI-84 and TI-83.
It’s best to find a local tutoring company, with a small number of employees, that hires full-time professional tutors.

For more information, visit the show notes at https://www.choosefi.com/114

113R | Making your Retirement Plan Bullet Proof | Tanja Hester Feb 08, 2019

113R | Tanja Hester retired early 15 months ago and joins the show to share her experience of being work optional, Brad makes a decision about solar panels, and a review of Monday’s episode with Grant Sabatier.

Brad shares some updates with his car malfunctions and follows up about his solar panel cost analysis.
Brad anticipates a 9.6% return on his solar panel investment, compared to Brian’s 12.5% return in Rhode Island.
Solar panels are expected to last for about 25 years.
Message from Dan, who realized while listening to Monday’s episode with Grant Sabatier, that he is charging too little for his side hustle work, and paying too much in taxes.
Sales is story telling – Grant figured out how to tell his story right and understand potential client’s needs.
A message from Ben, who feels like building relationships with recruiters is more likely to get you job options that is $10-15k, compared to the $60-80k Grant mentioned.
You’re unlikely to get a big pay bump by staying with the same company; getting a significant jump usually requires moving jobs.
Maybe you don’t need a budget, but you do need to know what your life costs.
Tanja Hester, author of Work Optional, joins the show:
- How did Tanja change from wanting to stick with her career forever, to choosing early retirement?
- Took Tanja and her husband about 6 years to reach early retirement.
- It’s hard to know your “why of FI”, but moving into early retirement requires some life planning.
- After 15 months, is early retirement meeting Tanja’s expectations?
- Whether you’re retiring at 45 or 65, the transition is still very similar; we all have a desire to matter and contribute.
- What are Tanja and Mark pursuing now that allows them to contribute?
- What things should people be considering in order to make their retirement plan bullet proof?
- - A variety of different retirement options, aside from full retirement.
  - One-phase or two-phase retirement – should you plan differently for your expenses and savings before and after the traditional retirement age?
  - Does 25x and/or 4% work for you?
  - When and how to cut your spending?
- It’s always better to over save.
- Tanja’s FI calculations don’t include social security, as there’s a possible it could change.
- Most retirees spend about $300k on medical expenses, beyond Medicare.

For more information, visit the show notes at https://ChooseFI.com/113R

113 | Swing for the Fences | Grant Sabatier Feb 04, 2019

113 | Grant Sabatier from Millennial Money and author of Financial Freedom, shares his story of unemployment and entrepreneurship, and his strategies for increasing your income and optimizing your finances.

In 2010, with a college degree in philosophy Grant had been laid off twice and found himself living at home as 24-year-old.
Grant sent out more than 200 resumes without a single callback before he found the information he needed to start learning Google Ad campaigns.
The certification process took about 30 days and he received a job offer almost immediately.
The first step to getting out of a rut is being honest enough to admit that you’re stuck.
Most people are only 2 or 3 steps away from a life that they’d love.
A million dollars could be 10 years away; just take the next step.
When Grant looked at all his friends and his parents’ friends, they were stressed about money so he decided to learn how to do it differently.
Grant learned how to build Wordpress websites and began selling his services to law firms, quickly securing large contracts at lower prices than large agencies.
Grant’s first client became his most valuable client because he served as a credible reference for more than a year.
How does Grant recommend getting your first client?
What matters is helping your client look good to their boss.
Selling is story telling – who you are as a person is more important that what you’re selling.
The paradox of the gig economy is that many people are actually less flexible and more stressed about getting their next client than they would be working a 9-5.
Whether you’re happy with your current job or not, optimizing your finances through your full-time job is where you need to start.
Talking to recruiters in your particular industry will give insight into the direction the industry is moving, what parts of your resume might be lacking, and the market value of your work.
How does Grant maintain relationships with recruiters?
- Face-to-face meetings
- Taking people out to lunch
- Form an actual relationship, don’t just try to get something from them.
For Grant, forcing someone into a budget that cuts out small things like wine and coffee just reinforces a scarcity mindset.
The only way to get from a 5% to a 30% savings rate is to decrease your housing, transportation and food costs.
There is a limit to how much someone can cut back, but making money is unlimited.
Grant invested 100% of his side hustle income.

For more information, visit the show notes at https://ChooseFI.com/113

112R | Planned Obsolescence Feb 01, 2019

112R | An evaluation of the long-term savings that result from driving old cars, a review of how Naseema McElroy has optimized her finances and reversed lifestyle creep, and a series of voicemails and messages from the ChooseFI community.

For more information, visit the show notes at https://choosefi.com/112R

112 | Zero Based Budgeting | How I paid off 1 million in Debt | with Naseema from Financially Intentional Jan 28, 2019

112 | Naseema McElroy, a registered and practicing nurse and blogger at Financially Intentional, explains how to accumulate $1 million in debt, and how she earned her freedom through financial independence.

How does someone accumulate $1 million of debt?
Naseema is from West Oakland, Ca., where she was taught to either join the military or go to college.
She attended the University of Southern California for both her undergraduate and graduate degree, then later completed an accelerated nursing certification program at the University of California in San Francisco.
Floor nurses where Naseema works earn above $200,000.
How could Naseema have been significantly more efficient with her college education?
Many nurses have two jobs: Naseema works part time with benefits (three eight-hour shifts), and a per diem job (two 12-hour shifts) without benefits, at a higher pay rate.
Even after finishing her education and working full time, Naseema accumulated more than $1 million in debt, and was living paycheck to paycheck.
Most of her debt was student loans and Bay-Area mortgage costs.
What inspired Naseema to move from a 5002ft apartment closer to the city into a 40002ft home in the suburbs?
Even with the house and the car and the seemingly perfect set up, Naseema did not feel secure, and even owed her family money.
Dave Ramsey set Naseema on the course to pay off her debt.
What was her first step?
Once Naseema began tracking her expenses, she was an early user of Dave Ramsey’s Every Dollar app.
A zero-base budget is projecting how much you’ll earn and set aside how much is intended for paying off debt, then adjust the remaining numbers to reflect other obligations and other adjustable expenses.
What inspired Naseema to begin blogging at Financially Intentional?
Before Naseema sold her suburban house, she had already paid $300k of debt.
Naseema chose to leave one of her jobs when it became an unhealthy environment, because living debt-free gave her the room in her budget to do so.
Currently, Naseema has moved out of the Bay Area and commutes back into the city 6 days a month for work.
Building wealth is a mindset. You have everything it takes to be successful.

Links:

Clever Girl Finance

The Stock Series

For more information, visit the show notes at https://ChooseFI.com/112

111R | Make the Impossible Possible Jan 25, 2019

111R | Jillian from Montana Money Adventures gives advice for laying out roadmap in your life, right after and Brad and Jonathan review Monday’s episode and highlight activities from several local groups around the globe.

Brad and Jonathan reflect on last week’s episode with Billy Banholzer.
A video inspires Brad to learn swimming from his daughter.
Your current behavior or mistake doesn’t have to define you for the rest of your life.
One of the first steps to Billy’s success was setting goals.
What are Brad’s suggestions for developing into a better writer?
Billy found ChooseFI while he was looking for a community of people who were pursuing the same things he wanted to pursue.
Getting started on the path to financial independence can be really hard at first, but it gets easier as you move further down the path.
Brad shares excitement about a local meet up and changes people are making locally.
Highlight reel of local group activities:
- Combined Southern California and San Diego groups have a sold-out meeting where Jillian from Montana Money Adventures will speak.
- The Nebraska local group is meeting every two months with specific topics.
- A new group in The Netherlands has more than 20 members.
- The local group in Portland, Ore., met every week in 2018.
- A Northern Ireland local group doubled its membership in the past month.
- Alex, an admin from the Baltimore group, is setting up mastermind groups.

Jillian, from Episode 84, talks about building a life roadmap:
- Focusing on your values is the first step to building a better life.
- How did Jillian and her husband create space to talk about their values and what they wanted their life to look like?
- Be. Have. Do.
- Jillian uses sticky notes to brainstorm her ideas and organize her thoughts.
- What is a Quit List?
- How does Jillian consider seasons of life?
- Each person’s superpower includes:
  - What you’re passionate about.
  - What you’re naturally good at.
  - What activities you get caught up in and find really fun.
- Brad talks about listening to where there’s resistance in your life.
- Could. Should. Want.
- Writing down your thoughts helps clarify and anchor them.
- Tickets for Chautauqua 2019 will go on sale soon.

For more information, visit the show notes at https://ChooseFI.com/111R

111 | The Lost Decade | From Prison to FI | Wealth Well Done Jan 21, 2019

111 | Billy B., a writer, entrepreneur and blogger at Wealth Well Done, shares his story of finding freedom in prison, starting over in his 30s and pursuing financial independence despite the setbacks.

For more information, visit the show notes at https://ChooseFI.com/111

110R | Change the Input Jan 18, 2019

110R | Voicemails from the ChooseFI community about saving on grocery bills, making life changes to optimize your circumstances, and a travel suggestion, as well as a review of Monday’s episode and updates from Brad and Jonathan about bills, travel, solar panels and more.

For more information, visit the show notes at https://ChooseFI.com/110R

110 | A Millionaire Next Door Case Study | Rocky Lalvani Jan 14, 2019

110 | Rocky Lalvani, blogger at Richer Soul, shares his story of growing up as an immigrant’s child, learning how to save money in his early years, and how he’s teaching his own children about finances now.

Rocky’s parents came to the U.S. in 1968, when Rocky was 2 years old.
Among Rocky’s parents’ friends and their community, money was an open topic, and in pursuit of the “American Dream” his family consistently climbed the financial ladder.
When Rocky was 7 his father became a single dad, and Rocky started learning how to be more independent, personally and financially.
Paying attention to what customers and supervisors actually wanted helped Rocky advance at work.
How much was Rocky saving when he was working in his youth?
Rocky worked through college by delivering pizza and working at the university, finishing without any student debt.
When he got his first post-college job, his dad helped him set up all the available automated savings accounts – 401k, company stock, etc.
After realizing he needed to get out of consumer debt, what was Rocky’s strategy?
Rocky’s plan was always to be a millionaire – he had been calculating and trying strategies since early on.
Seeing people lose their life savings in an economic downturn motivated Rocky to get himself into a steady financial position.
What steps did Rocky take to get himself to FI?
- Started saving early.
- Always spent less than he made.
- Rocky paid off his mortgage as early as possible.
How is Rocky teaching his children about money?
At this point, Rocky’s children are young adults – they don’t need things to be confident.
Rocky wishes that in addition to teaching how to save money, he had also taught his children to earn money.
Rocky’s strategy to help his daughter do well on the SAT, and hopefully earn a good scholarship, was to download an app on her phone and answer one SAT question a day for three years, prior to taking the exam.
Earning a scholarship to college is a sliding scale – a student might earn scholarship at a lower tier school, when they would not earn anything at a “better” school.
Rocky and his son went a step further and did their best to figure out how to pay for college with the lowest price tag.

For more information, visit the show notes at https://ChooseFI.com/110

109R | “Bear” Perspective Jan 11, 2019

109R | Big ERN from Early Retirement Now joins the show to talk about the current market climate: How is it impacting investors, who could benefit, and what markers he uses to evaluate its actual condition? We also share a voicemail from Abby, who provides a few more helpful hints for teaching abroad. Highlights from the show:

Brad maxed out his HSA for 2019, and talks about how he’s prioritizing fitness.
Easy choices, hard life. Hard choices, easy life.
Preview of who will be at the coming CampFI that Brad plans to attend.
Review of Monday’s episode about teaching abroad, and the wide variety of opportunities available.
A voicemail from Abby H., who is currently teaching in China and has experience in several other countries as well.
Abby tried teaching in Kuwait, but found that despite a high salary the cost of living was also extremely high.
Suggestions from Abby:
- Don’t just look for jobs in the Middle East, or other “high salary” locations.
- Try negotiating your salary/benefits offer.
- Look for options that don’t require purchasing a car.
How did Rob and Scott, from Monday’s episode, replace fear with flexibility in each of their lives?
Big ERN joins the show to talk about the current market situation:
- What is “sequence of returns” risk, and why does it matter?
- Under the assumption that the great recession or the dot-com bust will not repeat, Big ERN thinks it’s too early to worry about the current market climate.
- The 4% rule isn’t as untouchable as people think. With a small market downturn, it’s possible that some people will need to draw as much as 5%.
- If someone’s portfolio decreased this year, should they work a few more years to rebuild it, or count on the market recovering?
- If someone is still many years away from retirement, they shouldn’t worry too much about the market, and might actually be benefit from low stock prices.
- If you have a 50% or higher savings rate, you are going succeed financially, regardless of this drop in the market.
- The U.S. economy is still strong, so the value of the market isn’t necessarily going down – the price is just down.
- If someone has a sum of money ready to invest, should they invest it all at once, or employ “dollar-cost averaging”?
- Who should be concerned about the market and what should they be looking for?
- Look at the fundamentals of the U.S. economy to evaluate the conditions of the market.
- Big ERN just retired. His family is just settling in to a new house in Washington.

Links:

ChooseFI Local Groups are helping to build on-the-ground community
TeachAway
Early Retirement Now

109 | Exploring International Teaching Opportunities | Scott & Rob Jan 07, 2019

109 | Scott, a math teacher in Santiago, Chile, and Rob, a blogger at Getting Canned, share their experiences teaching abroad, including the financial and lifestyle benefits, and the how-to for making it happen.

For more information, visit the show notes at https://ChooseFI.com/109

108R | How to Calculate Your Savings Rate Jan 04, 2019

108R | Brad and Jonathan talk through the various methods of calculating a yearly savings rate and the numbers necessary to do so, and review Monday’s episode about setting up special needs accounts.

Jonathan is back from 20 days with family in Zimbabwe, and Brad recaps his Christmas vacation.
Brad and his family added 12 board games to their collection.
William, from Monday’s episode, set out a road map for people who want or need to safe guard finances for special needs children or other dependents.
Key: fund your trust as a part of executing your will to minimize tax liability.
Start with a 529 Able, but as you reach $100k, begin to look at the next steps.
Comment from Rebecca, that the 529 Able accounts in Nevada have higher fees than she preferred, so she’s funding a traditional 529 Plan and will eventually rotate it into a 529 Able.
Every state currently has its own set of 529 Able options.
Voicemail from Penny, who has a special needs trust and was on disability for 16 years, but has been back to work for the past 12 years and is now working to help her parents with their healthcare and financial needs.
Financial independence is the ability to do the things that bring you joy, whether they bring in money or not.
In 2019, ChooseFI is bringing in experts to answer specific, technical questions.
William is helping to build the website, and a more user-friendly local group site.
Brad is going to Camp FI in Florida soon.
How to calculate your savings rate:
- Three different ways to calculate:
- - Gross total compensation divided by how much you saved or invested.
  - Take-home pay divided by how much you saved or invested.
  - After-tax compensation divided by how much you saved or invested.
- Brad uses an excel sheet with three tabs: Profit & Loss (P&L), Net Worth, Accounts.
- In the Accounts tab, Brad records savings in each account at the beginning and end of the year, and totals up monthly expenses (cost of electric in Jan., Feb., Mar., etc.).
- Does Brad track every one of his credit card expenses?
- Net worth = add up all your assets and all your liabilities.

For more information, including links mentioned in today's show, visit the show notes at http://ChooseFI.com/108R

108 | Setting up a Special Needs Trust Dec 31, 2018

108 | William McVey, ChooseFI’s Chief Technology Officer, walks through investment options available to meet the financial demands of special needs children, and the strategies he’s used to prepare for his children’s future.

For more information, visit the show notes at https://ChooseFI.com/108

107R | The One Thing 2018 | End of Year Episode Dec 28, 2018

107R | A year-end episode featuring voicemails and messages from the ChooseFI community sharing successes, progress, exciting discoveries, and hopes for next year of our journey toward financial independence.

For more information, visit the show notes at https://ChooseFI.com/107R

107 | Entrepreneur Case Study | Craig Attkinson | GreenSide Up Landscaping Dec 24, 2018

107 | Craig Attkinson, owner and founder of Green Side Up, a landscaping company in Richmond, Va., explains how he started his business in his mid-20s, what it took to grow and optimize the business, and how he’s optimized other aspects of his life as well.

Craig started out his career on a golf course, with a degree from Virginia Tech in turf grass and horticulture.
Green Side Up started in one weekend when Craig bought a truck, a trailer and a mower all at once.
Craig mowed lawns since he was 10 years old and saved it all until he bought his supplies.
Jumping straight into landscaping required Craig to do everything himself, and learn on the go.
When Craig brought on his first partner, he gave him 50% of the company, and guaranteed a salary, knowing that they would have to build up that amount of business.
How did Craig get contracts in the mid 2000s?
Craig has a marketing company now that helps now, but early marketing for Green Side Up involved phone books, purchasing ads and a lot of networking.
Having a partner to build ideas, and watching to see how other similar businesses function is helpful to build efficiency.
Finding a good system for managing the work processes and clarifying expectations for employees hugely increased the business’ efficiency.
How can Craig build the company to a point that he can step away?
As the business gets bigger, purchasing things in bulk, or at higher volumes, helps Craig get better prices.
How did Craig find the FI community?
Craig’s goal in life is to not have to ever worry about money.
Craig’s saving rate is about 70-80% because he benefits from company vehicles, cell phone plan, etc., which makes his personal expenses much lower.
Craig’s family farm houses the equipment for the business.
How and why did Craig design his own tiny home, next to his sister’s house?
Craig loves life optimization; what aspects of his tiny home are most optimized?
- Took advantage of a 4’ x 6’ nook for his office.
- Used leftover granite from someone else’s kitchen remodel for his own small kitchen.
- Built a bed with drawers underneath for his closet.
Craig is technically FI, but is still loving his work, so he’s not retiring anytime soon.
His next adventures are climbing in Patagonia and biking in Norway.

For more information, visit the show notes at https://choosefi.com/107

106R | Agency Dec 21, 2018

106R | A series of suggestions and questions from the ChooseFI community, including HSA funds, capital gains distributions, and Traditional versus Roth IRAs, and follow up from Monday’s episode with Deanna.

Jonathan raves about battery-powered chain saws, and a great bonding experience with his dad.
Brad’s in-laws enjoy helping Brad’s family with landscaping and gardening.
Pursuing financial independence gives Jonathan the opportunity to plan his family’s schedule first and work around that.
The people pursuing FI aren’t just single, white software designers; FI gives everyone the opportunity to prioritize family.
We get to pick our story.
Our mindframe changes the trajectory of our lives.
No matter how bad you’ve had it, there is someone with more obstacles than you had, who found a way through.
ChooseFI isn’t about Brad and Jonathan, it’s about the community.
Voicemail from Danny Kenny, a CFP, who recommends rolling HSA funds out of your employee account and into an external HSA custodian account that will have lower costs associated (allowed once a year) and explains how capital gains distributions can hurt long-term holders.
Another voicemail, from Hillary, who enjoys hearing about the fundamentals of financial independence.
Lee asks why someone would choose a Traditional IRA versus a Roth IRA, since neither are funded by truly “pre-tax” money?
A 401k comes out of your W2 paycheck, before it’s taxed, while Traditional IRA contributions come from a personal decision to contribute post-paycheck money to a retirement account.
When someone uses a Traditional IRA, contributions are deductible and lower your taxable income to decrease your tax liability.
A Roth IRA does not come with a tax deduction.
Taxable investments are just a different way to store your money aside from just keeping money in the bank – either an investment account, or investment properties.
Ruth points out that it’s important to check our accounts and protect ourselves from recurring and unwanted charges.
James shares a frugal win – offering graphic design services in exchange for a $500 discount to his favorite coffee shop, so he can work there and drink coffee for free.

For more information, visit the show notes at https://choosefi.com/106R

106 | From Addiction to Financial Independence | Ms Fiology Dec 17, 2018

106 | Deanna, blogger at msfiology.com, shares her journey from drug and alcohol addiction to recovery, paying off six-figures of personal debt, and getting started on her path toward financial independence.

For more information, visit the show notes at https://choosefi.com/106

105R | Solar Panel Cost Analysis Dec 14, 2018

105R | Brian Feroldi joins the show to talk about the costs and benefits of installing solar panels and answers questions about his investment strategies, and Brad and Jonathan recap Monday’s episode with Paula Pant before announcing a new ChooseFI project on the horizon.

For more information, visit the show notes at http://ChooseFI.com/105R

105 | You can Afford Anything but not Everything | Paula Pant Dec 10, 2018

105 | Paula Pant, creator of Afford Anything podcast and blog, dives into her love for travel, her rejection of the traditional 9-5, and how she built an income to match her lifestyle.

Paula moved to the U.S. as a baby, just after being born in Nepal.
Her only travel growing up was between Ohio and Nepal.
Travel has become a large part of Paula’s life, but her desire to travel only grew in her adult life.
Rebellion is a form of seeking identity.
Once Paula started traveling did she fall in love with travel immediately?
What does Paula consider a legitimate visit to a foreign country?
Two weeks of vacation in Paula’s first few years of work after college felt too limiting.
Paula made a lifestyle change, and then figured out how to fund it.
Learning about and trying out freelance work introduced Paula to the idea that someone could work outside of the traditional 9-5 work.
Did Paula receive criticism when she quit her job to travel?
When Paula traveled for her first few years, she budgeted about $1,000 a month for expenses and chose to visit countries where the dollar goes far.
Paula’s tips for building connection while traveling:
- Stay at hostels – more economical, and more social.
- Meet the American, Australian, British, etc., ex pats, and meet their friends (build relationships, and travel slowly).
How did Paula restart once she returned to the U.S. after her 27-month adventure?
In pursuit of writing what she wanted to read, Paula became a personal finance writer.
When did Paula begin to feel imposter syndrome?
Default to saving, instead of default to spending.
Why does spending money create anxiety for Paula, and how did the scarcity mindset actually push Paula toward financial independence?
Passive income (real estate) was primarily meant to give Paula some financial cushion, instead of a means to financial independence.
Humans crave autonomy, purpose and mastery.
Reading about potential scientific advances motivates Paula to be healthier because she wants to be around to see it.
Self-care is work care.

For more information, visit the show notes at https://ChooseFI.com/105

104R | Travel Rewards | End of Year Planning Dec 07, 2018

104R | An update from Marla Taner on 2018’s best travel reward options, a hack for keeping your bills low, a review of Monday’s episode with Doc G.

Jonathan tries out a new service to ensure that his bills are staying low.
Billfixers.com is fixing a ‘pain point’ for Jonathan.
How can someone balance simplicity, and a willingness to say yes to opportunities?
Review of Monday’s episode: Purpose, Identity and Connection.
Finding your identity – the story you tell yourself, about yourself – is crucial to finding your space in the world.
Why was Brad was given singing lessons as a gift from a couple at Chautauqua?
Marla Taner joins the show to update about travel rewards:
- She’s traveling to Hawaii for New Years with 9 friends.
- Flight reward deals are not as good during Christmas, but hotels are usually consistent.
- What is the Southwest Companion Pass and what is the strategy to get it?
- - Earn the ability to bring someone with you for free on every Southwest flight for up to 2 years.
  - Must earn 110,000 Southwest rewards points in one calendar year.
  - Current strategy:
  - - Southwest’s Business card comes with 60k points.
    - Southwest’s Personal card comes with 40k points.
- Southwest has good sales on right now.
- What does it take to apply for a business card?
- Barclay Arrival Plus – Marla’s recommendation for beginners.
- Capital One Venture card has added a transferrable-points feature.
- Don’t overspend, look for opportunities to front-load some of your normal expenses to hit minimum spends (i.e., utility bills, or internet, grocery gift cards).
- Marla is joining Tim and Amy Rutherford from ChooseFI Episode 79 in Tempe, AZ for a few days. Want to join?
- Best way to connect with Marla, Tim and Amy is via the Go With Less blog.
  - Join them in Tempe
  .

104 | Ultimate Advice To my Younger Self | DiverseFI Dec 03, 2018

104 | Doc G, writer at DiverseFI.com, shares his experience and mindset as he considers stepping away from his career as a doctor, and highlights the value of building purpose, identity and connection.

For more details, visit the show notes at https://ChooseFI.com/104

103R | The Apprentice Nov 30, 2018

103R | Captain DIY returns to recommend some accessible projects for the beginning DIYer, Jonathan highlights two recipe and meal organization apps, and several messages from the ChooseFI community.

For more details, visit the extensive list at https://ChooseFI.com/103R

103 | The Trades Path to FI – Captain DIY Nov 26, 2018

103 | Tinian Crawford, blogger at DIY2FI and licensed electrician, talks about his path to licensure, the advantages of trade jobs and his transition to pursuing financial independence.

What jobs are represented in the FI community?
Base salary for an electrician is $70 minimum.
Many people go to trade school in high school or immediately after, so there’s very little financial education in the trade-work community.
Tinian’s father built his childhood house, and Tinian was enlisted to help with construction projects on their property.
Does Tinian find value in the graphic design education he received in community college?
Tinian’s first job was building signs – many of which were lighted signs – which piqued his interest learning about electrical work.
What education do you need to start electrician licensure training?
Tinian’s one-year program cost $25k.
To be fully licensed, an electrician has to do a 5-year apprenticeship.
Making $70 an hour comes when you work for yourself.
Do most electricians jump right into owning their own business?
Tinian’s recommendation: stick with a contractor you can learn from for your day job, and start taking jobs on the side.
Additional trade jobs that would be great for FI:
- Garden landscaping and design
- Plumbing
Tinian’s wife suggested that they save $20k by the time their first child was born.
In order to avoid high childcare costs, Tinian and his wife split their schedules as much as possible.
Tinian hopes to leave his day job at some point, but still needs to learn more about managing benefits and figuring out exactly how much he needs to support his family.
In order to prepare for leaving a day job, it’s important to identify how much life will cost after the change.
Beginning their investing with a local financial advisor and a socially conscious portfolio was a mistake for Tinian.

Links:

DYI 2 FI

DIYCaptain - Twitter

Burrito Bowl Diaries

“Eliminating the Excuse” – Saving Sherpa

102R | The Triple Tax Savings of Health Savings Account Nov 23, 2018

102R | Brad and Jonathan explain the long-term tax benefits of using a Health Savings Account to pay for medical expenses, discuss the benefits of new index fund investing options, review Monday’s episode with Timika Downes.

Brad and Jonathan are getting back to traditional health insurance, and excited about the Health Savings Account (HSA).
Most companies offer health insurance options, typically including:
- Low monthly premium + high deductible
- High(er) monthly premium + low(er) deductible.
The IRS defines a high deductible plan as anything higher than $1,350 for an individual, or $2,700 for a family.
Employees with high deductible plans have access to an HSA (eligible accounts).
An FSA (Flex Savings Account) is a reloadable account, that is primarily use-it or lose-it
Putting money in an HSA is tax free, and rolls over to future years, and drawing it out for medical purposes is tax free.
2018 HSA contribution limits:
- $3,450 for individuals
- $6,900 for families
After 65, if you have unused money in your HSA, you can draw it out like a traditional IRA and just pay your normal tax.
Brad intends to save his receipts and wait to be reimbursed until later, as HSAs will earn interest the same as any investment account.
ChooseFI community members recommend Lively or Fidelity.
Review of Monday’s episode with Timika – similar concepts and action points as the recommendations from Alan in the Side Hustle Coaching Series.
You don’t need permission: just take action.
Dan writes in to report that he’s reached FI!
ChooseFI has listeners across the globe – although not all the tax and investment information are relevant to international listeners, the lifestyle conversations are.
Brad and Jonathan highly recommend Vanguard because they have low fees, which means investors keep more of their returns.
In last few months, Fidelity began offering zero-fee funds and Vanguard has lowered its minimum investment from $10k to $3k for several funds.
Investments abroad can have very high fees.
Zero fees are not the only thing to consider when picking accounts: tax efficiency is very important as well.

Links:

Vanguard Ratchets Up Index-Fund Price Battle

102 | From 90K of Debt to 6-figure Side Hustle | Timika Nov 19, 2018

102 | Blogger and podcaster Tamika Downes reveals how she went from $94K of debt to owning a six-figure income-earning side hustle while continuing her job as a school nurse and raising three children.

Timika’s early financial experiences came through immigrant parents, from Barbados, hustling and saving.
Having a side hustle was common place in Timika’s family.
Despite her family’s habit of saving, Timika finished her education with $94K of debt.
- After her undergraduate Timika had $24K in debt.
- Student loans for her master’s cost $35K
- A second, nursing degree, cost another $30K
Choosing to pursue something that you’re not quite ready for can often lead someone to pay more than necessary.
Nursing degrees don’t have to cost $30K; immediately after high school students can become qualified Certified Nursing Assistants (CNAs) working in hospitals or nursing homes while starting at a community college and finishing through a bridge program at a 4-year school.
Nursing is a trade; find the most efficient way to get qualified.
Many universities offer tuition assistant to the children of faculty/staff, often including tuition at other universities.
What options did Timika consider in order to decrease her student loan debt?
Timika’s mindset changed when she started to own her life circumstances; taking responsibility for her finances was a natural result.
Instead of buying a $20K car, Timika bought a $20K business – a lice clinic.
Timika spoke with out-of-state clinic owners and did her homework before deciding to invest in the set up for her clinic.
Since opening the business, Timika has increased her talentstack to include:
- Securing a business lease
- Blogging
- Website management
- Business finance management
Timika went to coding bootcamp, for 75% discount as a female minority.
The lice clinic is now almost passive income: Timika only devotes three hours a week and has hired employees who manage the rest.

Links:

House of FI

Reluctant Frugalist

Saving Sherpa

The Road to Retirement: (Re)Learning to Love Work

For more information, visit the show notes at https://ChooseFI.com/102

101R | Side Hustle Coaching Series Part 4 Nov 16, 2018

101R | Brad and Jonathan talk about their experiences with W2 jobs and building side hustles, Jose shares his own side hustle tip, and Alan and Tallis wrap up the 4-part Side Hustle Coaching Series.

Brad and Jonathan are jumping into planned spontaneity.
Do your actions align with your values?
Brad recounts how the accounting firm he worked for right after college, one of the biggest in the U.S. at the time, folded and within 9 months no longer existed.
W2 jobs aren’t all that risk-free after all.
Having a side hustle is about diversification.
Jonathan talks about how Dani is building an audiobook side hustle, using some of the techniques and strategies that Nick Loper talked about in Monday’s episode.
Willingness to pivot your side hustle idea gives you a better chance at building a side hustle that actually works.
Voicemail from Jose with a side hustle tip from Task Rabbit – sign up to help others with random tasks, and add a little extra cash to your pocket.
Brad’s opting to rent a car through Turo, through which customers rent someone’s personal car, similar to AirBnB.

Side Hustle Coaching Call

Episodes to review: Episode 30, Episode 56 (Part 1), Episode 77R (Part 2), Episode 85R (Part 3)
Tallis reviews how her initial cold calls, starting from further away geographically and becoming increasingly local as she refined her sales pitch.
Tallis has 4 dance classes she’ll be teaching soon!
Tracking results and feedback from the start of your business is important.
Measuring results, and using valid tools respected within the medical community will be important to Tallis’ business.
Where does Tallis want her business to go in the next 2 years?
Keep pressing forward – it’s impossible to know how the business might grow, but Tallis is building entrepreneurial skills and opening options for her future.

Links:

10 Big Chain Stores That Will Secretly Match Amazon's Low Prices

101 | Finding your Side Hustle Idea | Nick Loper Nov 12, 2018

101 | Nick Loper, founder of Side Hustle Nation, talks about the benefits of developing a side hustle, and methods to actually develop a good side hustle idea.

You can only cut so much from your expenses; a side hustle helps you expand your earning potential.
Nick thinks working just a 9-5 job is risky – what happens if you get fired?
Nick advocates several methods for developing side hustle ideas.
Method 1: Intersection Method
- Write out three columns with lists that include what you can do, what you like to do, and the people in your network.
Nick used the Fiverr website to test out his first side hustle idea.
How important is it to pivot, instead of being discouraged by failure?
Some of the best ideas are developed once a business is already in motion.
Method 2: What sucks?
- Find simple sticking points in life and solve the problems.
Some people find things on Amazon that suck, and find a way to make them better.
There are manufacturing companies in China and the U.S. that work with small orders and require minimal up-front investment.
You don’t need a brand-new idea, you just need a different market.
Recommended episodes from Side Hustle Nation:
- Episode 173: How to Turn Your Ideas Into Recurring Revenue, with Stephen Key
- Episode 263: The Top 3 Amazon FBA Private Label Product Research Strategies for 2018 and Beyond
Method 3: Rip, Pivot and Jam
- Find a business model that’s working, pivot it to a new market, product, etc., and then do the work.
Are there side hustles that Nick no longer recommends?
Sometimes the opportunity cost for a side hustle may not be worth the cash.
One of the best side hustle ideas Nick has heard: Flea Market Flipper.
How difficult is it to develop a passive-income side-hustle?
Think Maids: found a category of businesses on Yelp that had really poor reviews, and found a way to provide better customer service.

Links:

Alibaba.com

Smart Passive Income

GoCurryCracker

100R | Know the Rules Nov 09, 2018

100R | Brad and Jonathan explain how simply knowing the rules can save you thousands on taxes and college financing, Brad talks through the IRA Conversion Ladder and Capital Gains Harvesting, and a few updates from the community.

The financial independence movement is growing, and seeing a lot more press coverage.
Messaging matters: The Wall Street Journal published one article with two different headlines.
Pursuing financial independence isn’t about buying brown bananas, despite what some media would suggest.
Brad reached financial independence with intentionality about his priorities in his life.
Brad and Jonathan don’t aim to tell people what decisions to make in their life, just give options and information.
What did Brad’s family do to reach financial independence?
- Housing: chose to move to a less-expensive cost of living area
- Cars: Brad & his wife drive 15-year-old cars
- Food: don’t go to restaurants often
Set up a life that doesn’t cost that much.
Pursuing financial independence actually allows people to pursue jobs that they love.
If life costs a lot and someone is in debt, it’s very hard to walk away without taking major risks.
Knowing tax rules is a huge component of pursuing financial independence.
Knowing the rules in regards to paying for college makes a huge difference in how much financial aid your student might be eligible to receive.
A message from Matt about researching the actual requirements necessary for a job in nursing – the cost of nursing school can range from a few thousand dollars to more than $100k.
Studying nursing in a less expensive area still gives you qualifications to practice anywhere in the U.S., with a potentially huge payoff.
Roth Conversion Ladder & Capital Gains Harvesting – the goal is to pay little or no tax.
Roth IRA Conversion Ladder:
- Starts with traditional IRA/401k.
- If you want to retire before 59.5, taking money out is taxable income.
- If you’re not collecting significant income, taking money from an IRA is unlikely to push you into a high tax bracket.
Capital Gains Harvesting
- If you’re income is low, your tax bracket can be incredibly low.
Email from Dan explaining how he and his wife paid off many of their debts, found a way for his wife to be a stay-at-home mom, and started a small side hustle.
Brad shares a frugal win of the week at the optometrist.

For more information, visit the show notes at https://choosefi.com/100R

100 | Welcome to the FI community Nov 05, 2018

100 | Brad and Jonathan look back at the ChooseFI’s growth during the past 100 episodes and hit the highlights of financial independence for new community members and recap their own financial independence journeys.

Jonathan considers himself a reluctant frugalist, but the idea of not having to work won him over.
Brad and his wife were natural savers, but chose to move from Long Island, NY, so that they could save more and work toward financial independence.
If you want to take back your years and have the option to stop working before your 60s, you’re going to have to live differently and make different choices.
The key to long term freedom is saving money.
The benefits of pursuing financial independence are felt long before reaching FI.
Jonathan put himself in a position to leave his pharmacy job when it stopped working for him and his family.
A huge quantity of life’s stresses can go away if you’ve got some money in the bank.
What you earn minus what you spend = the gap.
The goal of the ChooseFI community is to help you grow the gap, and pursue what you’re most interested in.
ChooseFI isn’t about the money, it’s a life optimization strategy.
Small sacrifices add up in the long term.
What is a talent stack, and how did it change Brad’s life?
Starting with current income is the wrong place to start calculating the number you need for retirement.
FI number = 25 x annual expenses (4% rule of thumb)
If you’re only saving 1%, it’ll take you 100 years to replace on year of expenses.
Getting as close to possible to a 50% savings rate is when things really start to move quickly.
Being rich isn’t watches and cars – it’s money saved and pursuing what’s more important to you in life.
What major decisions put Brad on the path to FI?

Links:

Mr. Money Mustache

www.choosefi.com/start

099R | Market Fluctuations | Stick to Your Plan Nov 02, 2018

099R | Brad and Jonathan review Monday’s episode about generous giving and resource stewardship, then catch up on voicemails and updates from the community about dental school, fall activity ideas, and the recent dip in the stock market.

Jonathan recaps his recent family vacation and travel to FI Chautauqua Greece.
Chautauqua was most importantly about community.
Jonathan saved nearly $1,200 on a bill for his son’s broken leg just by asking for an adjusted cash-pay price.
The Playing with FIRE Kickstarter event far surpassed expectations.
- More than 1,000 supports
- More than $100k
Review from Monday’s episode with Michael Peterson.
Michael continues to work because he wants to be able to give.
Geoarbitrage might not always be what we think; moving to ‘less expensive’ countries also usually involves a big lifestyle change.
Considering oneself to be a steward of resources, not just an accumulator of money, puts members of the FI community in a unique position to be generous and consider their impact on world.
Voicemail from Brian Feroldi from Motley Fool: stock market is down about 10%, but no need to panic, as drops in the market are normal and bound to recover in the long term.
Buying stock when it’s down is like buying stock that’s on sale.
Voicemail from Chris who tries to support 2nd and 3rd generation FI by supporting childhood entrepreneurship.
Hansi asks the community for help brainstorming 31 free/inexpensive things for couples to do in the fall.
- Drive to look at fall foliage
- Toast pumpkin seeds
- Backyard fire pit
Josh, a dentist in Oregon, opted to go to dental school in Oklahoma for half the cost of a school in Boston, and then chose to work in a rural group practice to significantly increase his income.
- Using money he put into his 401k, he purchased a practice in Bend, OR and improved his lifestyle.
- Expects to pay more than $1.2 million of loans in the next 5 years.
In the medical industry, working in more remote locations tends to increase income.
Voicemail from Matthew who is a military dentist – military pays for the cost of dental school, plus a stipend, in exchange for a few years of service to the military, and a guaranteed job.

Links mentioned in this episode:

FI Chautauqua

usafdds.blogspot.com

For more information, visit the show notes at https://ChooseFI.com/099R

099 | Generous Giving on the Path to FI | Michael Peterson Oct 29, 2018

099 | Michael Peterson, owner of a bacon-themed concession stand in California, talks about downsizing his family expenses, spending 8 months of the year managing a non-profit in El Salvador, and why generous giving is important to him.

For more information, visit the show notes at https://ChooseFI.com/099

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

098R | A Cautionary Tale in HyperDebt Oct 26, 2018

098R | An exciting conversation with Jared about his path to FI as a traveling physical therapist and his current 5-month trip abroad, as well as a voicemail about healthcare planning and a review of Monday’s episode.

For more information, visit the show notes at https://ChooseFI.com/098R

098 | HyperDebt | The Debtist Oct 22, 2018

098 | Samantha Keith, author of The Debtist blog, explains what it means to have more than half a million dollars of student debt, and how she plans to pay it off in less than 10 years.

For more information, visit the show notes at https://ChooseFI.com/098

097R | The Good Dad Project Oct 19, 2018

097R | A conversation with Larry Hagner from The Good Dad Project updating Brad on the recent financial changes he’s made in pursuit of more financial independence and his family’s budgeting strategies, as well as highlight’s from Monday’s episode from The White Coat Investor.

For more information, visit the show notes at https://ChooseFI.com/097R

097 | The White Coat Investor | Origin Story Oct 15, 2018

097 | Dr. James Dahle, founder of The White Coat Investor, talks about getting his start as a doctor and a blogger, setting up inheritance funds for his children, thinking through his investing strategies, and the motivation that keeps him working on the White Coat Investor.

For more information, visit the show notes at https://choosefi.com/097

096R | The Money Matriarch of the World & the Godfather of FI | Suze Orman & JLCollinsNH Oct 12, 2018

096R | An in-depth conversation with JL Collins about a recent controversial interview given by Suze Orman, and clarification of what concepts are truly at the heart of the financial independence movement.

Frugal wins of the week from Brad & Jonathan: garbage pickup and cell phone batteries.
What questions did Dominick Q, from Monday’s episode, ask that were most impactful for Jonathan?
Jonathan explains how he uses a planner at night to set himself up for success the next day.
- What three things does he want to accomplish tomorrow?
Shutting off notifications on his phone allows Brad to step away from him phone more effectively.
One of Dominick’s strategies for breaking the tie to various technology is a ‘digital detox’.
Leaving his phone at home during a family walk each morning helps Jonathan give quality, undivided attention to his family.
JL Collins, a.k.a., the Godfather of FI, talks about two recent interviews on the “Afford Anything” podcast with Suze Orman (personal finance expert and former CNBC talk show host).
Although Suze opposes the overall idea of FIRE, she advocates for many similar personal finance concepts and principles.
Brad and Jonathan wonder whether anyone would ever be able to retire based on the FI numbers that Suze suggested.
JL suggests that fear of what might happen in the future informs Suze’s mindset more than necessary.
Continuing to work doesn’t mitigate uncertainty about the future.
The only truly non-renewable resource is wasting decades of your life.
Is the FI community more prepared than most for bad things that might happen in the future?
Jonathan and JL wonder if Suze’s wealth has been accumulated through sound investing, or from a variety of businesses and her work as a TV personality.
It’s easy to sell books and products based on fear.
Was Suze’s interview actually good for the FI community?
The amount of money someone actually needs to retire is entirely dependent on the lifestyle that someone chooses to live.
Does the “FIRE” acronym add some concern and confusion about the FI community?
Being financially independent just means that you can do whatever you want.
Trying to pick individual stocks is a loser’s game.

For more information, visit the show notes at https://ChooseFI.com/096R

096 | Drift | Dominick Quartuccio Oct 08, 2018

096 | Dominick Quartuccio defines life ‘drift’, advises Brad & Jonathan on how to take inventory of their habits, and evaluates the role technology plays in helping or hindering progress toward our goals.

For more information, visit the show notes at https://choosefi.com/096

095R | Call to Action Oct 05, 2018

095R | Brad and Jonathan get an update about the “Playing with FIRE” documentary, they recap FinCon 2018, and review feedback from the community about Monday’s episode with the Military Dollar.

For more information on this episode, visit the show notes at choosefi.com/095r

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

095 | A Military Path to FI | Military Dollar Oct 01, 2018

095 | The author of the Military Dollar joins Brad and Jonathan to discuss the various ways that service members can optimize their finances and choose financial independence, including retirement plans, financial planning, health care benefits and the GI Bill.

Working in the military can set someone up to retire after 20 years with a pension and the ability to pursue whatever interests them.
Why do many young members of the military actually have financial problems?
Has Military Dollar ever seen any specific education for new servicemen?
How could a young person change his/her mindset to make more frugal choices and pursue FI?
Why did Military Dollar decide to pursue financial independence?
How did she get started?
What was MD’s savings rate early on?
How has MD set herself up to potentially retire by 41?
What was the moment that changed MD’s mindset and approach toward finances?
How do most military members approach debt?
What does the optimized path to FI look like in 2018.
What’s the difference between the old Legacy Retirement and new Blended Retirement System?
What advantages does the Blended Retirement System have for people who don’t stay in the military for 20 years or more?
What is the biggest difference between the enlisted and the officer’s route to FI?
How can people plan for and understand relatively predictable promotions and pay raises?
If someone starts young and doesn’t increase their lifestyle spending, getting to a 50% savings rate is very possible.
Within the military retirement system, what investment options are available?
Active duty health care = free for you and your family.
How does the GI Bill work, and how does that help with college expenses?
The GI Bill can be passed onto family members, but does include a service commitment.
If the GI Bill is used by a service member’s children, or after separating from the military, there is a housing allowance available.
GI Bill will cover all tuition and fees as an in-state student for public universities.
GI Bill will cover approximately $22k for private universities.
What is the Yellow Ribbon program, and how does it help cover the difference?
What is the minimum time of service to qualify for the GI Bill?
What’s next for the MD whenever she retires from the military?
How does MD balance her commitment to the military with her interest in serving her community?
How will MD know when it’s time to retire?

For more information, visit the show notes at https://ChooseFI.com/095

094R | Transitioning to Entrepreneurship | A Case Study in Estimated Taxes Sep 28, 2018

094R | The logistics of estimating and paying taxes as an entrepreneur, Brad’s frugal win of the week, and emails from the ChooseFI community.

Brad and Jonathan are at FinCon in Orlando, Fl.
Brad describes his family’s frugal win of the week at Old Navy.
Review of the tax implications of winning a non-cash prize.
How do some entrepreneurs put themselves in a position to fail because of taxes?
Case study: how to make estimated tax payments as a new entrepreneur.
Brad wants to pay the least amount of money in taxes, but ensure that he definitely pays the minimum amount to avoid incurring penalties.
- Knowing due dates and technicalities is important.
- It’s key to have money set aside in case you do owe more at the end of the year.
What is the safe harbor provision?
If you have blended W2 and non-W2 incomes, you do have to estimate based on previous pay stubs.
Why would someone owe payroll tax?
Brad uses a different bank account to reserve money he thinks he’ll need for taxes, and uses an eftps.gov account to submit his taxes.
It’s important to know that you’ll owe a lot of money on April 15 every year.
Email from Ally reporting two life wins:
- Keeping an inventory for what’s in her freezer by writing on the front like a white board.
- Using checkboxes to keep track of the three things she accomplishes every day.
Is FI getting to the UK?
Playing with FIRE documentary has been submitted the film to Sundance.
Scott, writes an email, to explain how pursuing financial independence and information from ChooseFI has changed his life.

Links:

“How to retire in your FORTIES without earning a fortune” – Daily Mail

094 | Solo 401K vs SEP with Waffles on Wednesday Sep 24, 2018

094 | Mr. and Mrs. Waffles on Wednesday (WoW) talk about winning on a TV game show, starting their own business, learning the tax code to maximize 401K contributions, and volunteering internationally.

How did Ray win on the Price is Right, and what did he win?
What were the tax implications of his winning?
How was Ray’s experience at the IRS building in Los Angeles?
Why did Jonathan receive a tax penalty last year, and how did he respond?
How did Mr. and Mrs. Waffles on Wednesday decide to start a blog, and how did they decide on a name?
Why do we have to just live for weekends?
How did Ray win-over Mrs. WoW to financial independence?
What decisions did Mr. & Mrs. WoW make after they chose to pursue financial independence?
How did the pursuit of FI change their careers?
What type of business did Mrs. WoW open, and how did she keep her overhead costs down and ultimately increase her income?
What is a Solo 401K and why did Mr. WoW choose that option?
What is the advantage of a Solo 401K for owner and spouse, and how does the math work?
How important is it to control your tax rate?
What happened to the Mr. & Mrs. WoW’s retirement accounts when they opted to bring on an employee?
What is a Mega Backdoor ROTH?
How did Mr. WoW find a plan administrator who could help him set up his accounts?
Does Mr. WoW manage his own taxes, or use an accountant?
What adjustments has Mrs. WoW made in the past four years that made a positive difference in her life?
How does someone volunteer for international aid organizations?
Do Mr. & Mrs. WoW add some site seeing or vacation to the volunteering they do?
How do they plan for these trips?

For more information, visit the show notes at https://ChooseFI.com/094

093R | Other Mountains to Climb | With Joe Saul-Sehy from Stacking Benjamins Sep 21, 2018

093R | Brad, Jonathan and Joe Saul-Sehy, from Stacking Benjamins, talk about what is rewarding to your soul, give feedback to a ChooseFI community member who’s considering selling his business, and recap Harry, the Ride Share Guy’s strategies for become the center of a niche.

Hurricane Florence’s path didn’t go near Brad and Jonathan, but there were tornadoes.
FU money is better than FI money.
Meet up in Florida during the week of FinCon 2018.
How did Harry (from Monday’s episode) become the go-to guy for ride-share drivers?
What strategies would help someone become the go-to person in a particular niche?
How can you solve a problem that you, and other people, have?
Find people who like and trust you.
How is retail changing in 2018?
How did Harry pursue unusual opportunities to make extra money?
Could the “destination filter” as an Uber or Lyft driver and the potential to deduct you commute drop someone into a lower tax bracket?
How did Joe from Stacking Benjamins become a financial advisor?
What did the phrase “other mountains to climb” mean to Joe and how did it impact his career?
What did Joe value about going back to school to be a teacher, but not actually becoming a teacher?
What does it mean for something to be “rewarding for your soul”?
How did Joe need to adjust his business in order to sell it?
Where does financial independence stand within the personal finance world?
Is financial independence about playing defense or offense?
Voicemail from Jon, looking for advice about whether he should sell his business to become FI, or continue working with a few side hustles.
Could Jon restructure his business to reduce stress and create a more positive working environment?
What’s wrong with a life well worked?
Is there value in purchasing a business that is inextricably tied to a single person?
Coming up soon, Stacking Benjamins is doing live shows in Orlando, Kansas City and Ferndale, Mich.

For more information, visit the show notes at https://ChooseFI.com/093R

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

093 | Look at the Problem Differently | The RideShare Guy Sep 17, 2018

093 | Harry Campbell, The Rideshare Guy, talks about what it takes to be a successful Lyft and Uber driver, the strategies he used to start his blog, and how he transitioned from aerospace engineering to full-time blogging.

For more information, visit the show notes at https://ChooseFI.com/093

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

092R | It's not the Idea, it's the Process Sep 14, 2018

092R | Plans for ChooseFI to support education, the value of a life resume, travel rewards tips for active duty military, and hurricane preparation.

For more information, visit the show notes at https://ChooseFI.com/092R

092 | Will Boland | CarLotz and Entrepreneur Case Study Sep 10, 2018

092 | CarLotz co-founder Will Boland talks about making the leap from investment banking to entrepreneurship, the challenges and benefits of leading a growing company, and what it means to build a life resume.

How did Will become an entrepreneur?
What was the inspiration for CarLotz?
What experience during his work in investment banking gave Will the motivation to become an owner/manager?
Will is 2nd generation FI. What did his journey look like?
How did Will present and convince his family that it was a good idea to pursue entrepreneurship instead of continuing with his well-paying job?
Did Will accumulate significant student loans while completing his undergraduate degree and master’s?
What is a life resume, and does Will keep track of his?
What role have mentors played in Will’s career?
Will has been very open and honest with mentors and co-workers about his specific goals. How does he create an environment at CarLotz to encourage the same from his employees?
Why didn’t Will’s mentor want to see his business plan?
What was the thought process when Will and his co-founders could only secure small startup investments?
What is the advantage of selling a car on consignment?
What hiccups did CarLotz overcome in their early days of business?
“If you aren’t embarrassed by the first iteration, you’re launching too late.”
How does Will encourage employees to share good ideas?
Why do pursuing FI and starting a business complement each other well?
How did Will and his co-founders create space to share work-place challenges within their partnership?
Has Will caught up, financially, to where he’d be if he had continued his job in investment banking?
Is he happy with where he’s at?
Does CarLotz need to be a financial success in order to keep Will on track to reach financial independence?
Why is running Will’s favorite life hack?

For more information, visit the show notes at https://ChooseFI.com/092

091R | Real Estate Inside an IRA Sep 07, 2018

091R | An overview of how to own a house with an IRA, Jonathan attempts to optimize his recipes and shopping list, a list of the top 5 ChooseFI episodes and a travel rewards win.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

091 | Rich Carey Real Estate | Building a Rental Real Estate Snowball Machine without Debt Sep 03, 2018

091 | Rich Carey, officer in the U.S. Air Force, talks about learning to live frugally, buying his first townhouse, and building his real estate empire from one to 20 houses in Montgomery, AL.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

090R | Longest Vacation Ever Aug 31, 2018

090R | Brad gets back from vacation, Jonathan talks about bringing vegetarianism into his diet, and voicemails from the community highlighting CLEP tests and a 401k win.

Brad is back from a month-long vacation in the U.K.
Is this Brad’s first experience with “slow travel”?
Where will Brad’s family go next?
If you can optimize small things, they add up.
Brad joined a ChooseFI meet up in London, with Barney from The Escape Artist and Ken from The Humble Penny.
Is there a more efficient way to be active than slaving away on the treadmill?
Are your health and exercise habits actually adding value to your life?
Brad thinks maybe he’ll try a vegan diet for a short time, as was recommended on Monday’s episode.
How has Jonathan incorporated additional spices into his family’s meals?
“Eat food, not too much, mostly plants” – Michael Pollan
How much money could Jonathan save if his family went vegetarian?
What is intermittent fasting?
Email from Alex, confirming the advantage and benefits of veganism.
Does veganism have a PR issue?
What tools will Jonathan use to increase his vegetable diet during the next few weeks.
Voicemail from Ben, about using CLEP tests, which are free for members of the military, to decrease the time it takes to complete a university degree.
Voicemail from Michael: strategically moving money from taxable investment accounts into non-taxable accounts will move him into a 0% tax bracket.

Link to Jonathan's InstaPot:

Instant Pot

090 | Vegan Path to FI Aug 27, 2018

090 | James and Steven pull back the curtain on veganism, talking about the health, lifestyle and financial benefits of veganism, alongside the practical details of how to actually make it work.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

089R | Let Me Check With My Accountant Aug 24, 2018

089R | An introduction to the Family Bank and what ChooseFI’s accountant-on-call thinks about it, as well as how to navigate rental car insurance, and what soft skills are crucial to a career in retail?

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

089 | Retail Path to FI with College Investor Aug 20, 2018

089 | Robert, from The College Investor, talks about his lucrative job as a Target store manager, building his blog into a highly profitable side hustle, his relationship with frugality, and the keys to success in a retail interview.

For more information, visit the show notes at https://ChooseFI.com/089

088R | What Have You Built? Aug 17, 2018

088R | Cities that are the best for pursuing financial independence, how to hack your career, ideas for building a side hustle and how to assess the return on your college investment.

For more information, including resources, visit the show notes at https://ChooseFI.com/088R

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

088 | Career Hacking the Tech Industry | Millennial Boss Aug 13, 2018

088 | Millennial Boss and FIRE Drill podcaster, J talks about becoming a creator, career hacking, and salary negotiation, alongside of pursuing FI, side hustles, and a growing podcast.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

For more information, visit the show notes at https://ChooseFI.com/088

087R | Autonomy Mastery Purpose Aug 10, 2018

087R | How to teach children lessons that set them up for success, discussion about using duel-enrollment and university co-ops to optimize college, and a strategy for cash flow balance transferring.

For more information, visit the show notes at https://ChooseFI.com/087R

087 | Education Through Innovation | Don Wettrick Aug 06, 2018

087 | Don Wettrick, CEO and co-founder of StartEdUp Innovation program, and a current high school teach, talks about the cultivating innovation and creativity in the classroom, harnessing a learner’s internal motivation, and giving students opportunities to solve problems they’re passionate about.

Why and how did Don create an Innovation course at his school, and ultimately the StartEdUp Innovation program?
What was challenging about getting his students involved during the early stages, when it was just extra time during his class?
When do students lose their curiosity or learning?
How much does a reward really motivate students?
What would the process look like to develop and nurture internally motivated learners through elementary school?
What’s the difference between creativity and imagination?
How can a parent help their child be more innovative outside of school?
What does Don recommend as a good consumption v. production ratio?
How does changing consumption habits – how much, and what – impact the way Don’s students and own children think?
How does building community within a cohort of “creators” impact a student’s relationship?
Does participation in Don’s high school class impact his students other grades?
How do mastery, autonomy and purpose mix together best?
What does it look like to be in Don’s Innovation Class?
- 6-7 weeks of class
- - Basics of innovation
  - How to think creatively
  - Building a professional social media presence
- Remainder of class is “open source learning”
- Volunteer with struggling non-profits, to see problems close up
- Statewide student “Pitch” competition
- Helping struggling local businesses
What sort of projects have his students build?
What story do you tell yourself, about yourself?
Is there a difference between improvement and new opportunity?
How would Don hope to integrate innovation development into schools in his 10-year dream?
Contact: @DonWettrick on Twitter
What did Don’s father mean when he told him to “Pay himself first”?
Why does Don think it’s important to fail?

Links:

“Daniel Pink: The Puzzle of Motivation”

Freakonomics

You Will Lose Your Job to a Robot—and Sooner Than You Think

086R | Pretirement | Roger Whitney Aug 03, 2018

086R | A live-recorded conversation with Roger Whitney, the Retirement Answer Man, from Podcast Movement, questions for a potential accountant, and takeaways from Monday’s live case study with Allison Goddard.

Brad is departing for a month-long family vacation to the U.K.
What is “global entry” and how/why did Brad get it before his trip?
Jonathan had a chance to meet up with Allison., from Episode 86.
If money was no longer an option, what would change for Brad and Jonathan?
Brad and Jonathan are super impressed with Allison’s grit and tenacity, to change the trajectory of her life.
Sometimes encouragement from someone else is the motivation we need.
You don’t have to know where your life is going to go, you just have to get started.
How can someone overcome “imposter syndrome”?
Voicemail from Angela at Tread Lightly/Retire Early – if Allison’s house is a place that makes her happy and brings her joy, maybe there are other ways that she can adjust her spending to be more efficient.
An article in the “Journal of Accountancy” addressing specific strategies for those pursuing financial independence: FIRE-d up for early retirement.
At what point is Turbo Tax not sufficient for your taxes?
What questions would Brad ask of a potential CPA?
Brad and Jonathan participated in Podcast Movement in Philadelphia, and participate in a ChooseFI meetup.
Brad is attending a ChooseFI meet up in London as well.
A live recording from Podcast Movement, with Roger, the Retirement Answer Man:
- The tension between wanting to have a good life and wanting to enjoy today never really goes away.
- Most baby-boomers don’t really want to never work again, but rather they want freedom in their time.
- What are people running toward in retirement?
- Instead of comparing retirement to a light switch, think of it more like a dimmer switch.
- How does Roger talk to someone about making adjustments to move toward the life that you want?
- Roger’s suggestion for have conversations: go for a walk, or a road trip, or something that creates space and time to have conversation.
- Pretirement: what can you do now to start setting yourself up for what you want?
- Strong relationships with your colleagues and superiors can give you the ability to adjust your job to meet your needs.
- Five things to do with money: Give it away, spend it, pay down debt, save it, or invest it.

Links:

U.S. Customs Global Entry

Building My Castle

Tread Lightly, Retire Early

Rock Retirement

086 | A Live Case Study with Physician on FIRE and Allison Goddard Jul 30, 2018

086 | Allison Goddard, a dermatologist from Chattanooga, Tenn., chats with ChooseFI and Physician on FIRE to review her journey through medical school and receive advice to clarify the next steps in her path toward financial independence.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

——————-

For more information about FI, go to https://choosefi.com/086

085R | Sidehustle Coaching Series Part 3 | Learn to Pitch and Lean into the Uncomfortable Pause Jul 27, 2018

085R | Catch up with Alan and Tallis as they zero in on the key elements of a successful pitch, and the importance of uncomfortable silence, as well as a home improvement update from Jonathan and review of Monday’s episode with author M.K. Williams.

What you'll hear in this episode:

Jonathan reports a wallpaper challenge/ DIY fail in his kitchen.
- Recommendation: use drywall mud to fix blemishes in drywall after removing wall paper.
What home-improvement projects are worth hiring out?
MK, from Monday’s episode, noticed that through persistence she has not only produced more content, and that with each release, her previous work sells even better.
- Check out Episode 59 about persistence.
How to build your personal brand and get start building your sidehustle and/or passion?
Sidehustle Coaching episodes so far:
- Episode 30: Introduction to Alan Donegan
- Episode 56: Part 1 – meet Tallis and hear about her new business idea
- Episode 77: Part 2 – check in about Tallis’ progress and initial feedback
Update since the previous episode:
- Chris, from the fundraising department at the Northwestern Hospital, is interested in hearing Tallis’ pitch.
If you can’t sell your business, you don’t get any customers, and therefore you don’t get any money.
“Sales” is the process finding someone with a problem you can solve and explaining that you can fix that problem.
Why did Alan struggle to sell his own business at the start?
What is the problem that Tallis’ business is solving?
How has Tallis clarified her business’ goal?
The triad: include three points when you make your pitch.
How do people accidentally overwhelm listeners during their pitch?
What’s the best way to start a pitch?
Never end your pitch with Q&A.
How can you set up a strong close if you have to include Q&A?
At the close, it’s important to actually ask the potential customer to buy the product.
“If you don’t ask, you don’t get.”
What does Tallis want to ask at the close of her pitch to Northwestern?
How did Alan help a group of students pitch for an advertisement with a really strong open?
How to deliver a strong pitch on the phone?
Your moments of impact as a speaker are actually when the audience is thinking.
How does Alan get someone’s attention at the start of his pitch conversation?
- Creative intro
- Confirm he’s talking to the right person
Tallis’ product isn’t right for everyone. It’s important to ask questions to determine whether her product meets the need of a potential client.
How and when does Alan suggest delivering the price?
What part does the uncomfortable pause play in selling a product?
Why doesn’t lowering prices always equate to increased sales?
Tallis sets a measurable goal for number of pitches and sales.
Want a copy of MK’s book? Leave a review!

Links:

DIY to FI

My $3,500 Tiny House Explained

Caboose Rental

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

085 | From Passion to Profit | M.K. Williams Jul 23, 2018

085 | Science-fiction author M.K. Williams talks about her journey toward financial independence, the decisions she’s made along the way, and self-publishing her first three novels.

For more information, visit the show notes at https://ChooseFI.com/085

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

084R | Mindset of FI Jul 20, 2018

084R | The essential steps to a FI mindset, travel rewards updates from Brad, voicemails from the community, and highlights from Monday’s episode with Jillian with Montana Money Matters.

——————

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

——————

For more information, visit the show notes at https://ChooseFI.com/084R

084 | Montana Money Adventures Jul 16, 2018

084 | Jillian, from Montana Money Adventures, talks about simplifying her life while raising five children, valuing grit and resilience, taking risk, and the value of financial independence.

What you'll hear in today's episode:

What does Jillian mean by “big family minimalism”, and why did she consider it a survival tool?
How did Jillian decide to adopt several children?
What role do grit resilience play in her story, and how does that play out in her life?
How does Jillian manage the chaos that she invited into her live?
What is a “Quit List”?
What is the process for deciding what things to quit?
How does Jillian pursue minimalism with children?
What does life minimalism look like to Jillian?
How much involvement do Jillian’s children have in the decision-making process?
What does the ideal day look like to Jillian’s family?
How does good conversation become a part of Jillian’s life?
What did Jillian’s combined income look like during their journey toward financial independence?
What was Jillian’s “flash point”?
How did her childhood experiences impact the way she approached life and finances as a young adult?
What are the highlights of Jillian’s journey toward financial independence?
How did Jillian and her husband get to the point of purchasing a house with cash?
What did friends and family think of Jillian’s $50k home purchase?
How does Jillian teach people to lean into discomfort and own their choices?
What does Jillian think about a culture that values comfort and safety?
How many things can go wrong before someone will walk away from a pursuit?
When did Jillian start to plan her life?
Best way to connect with Jillian: email list.
How is Jillian learning to be more generous?

Links:

Montana Money Adventures

Big Family Minimalism

Sportive Cyclist

Essentialism, by James Latham

The One Thing, by Gary Keller

083R | The Hobby Checkbox Jul 13, 2018

083R | A checklist to optimize your hobbies, a highlight on the San Diego local group, and messages from the ChooseFI community: All of this while we recap Monday's episode with Cody Berman.

For more information, visit the show notes at https://ChooseFI.com/083R

083 | A Second Generation FI Case Study | Cody Berman Jul 09, 2018

083 | 22-year-old recent college graduate and second generation FI, Cody Berman, talks about embracing frugality, saving and investing in his youth, optimizing a path through college, and getting his Disc Golf business off the ground.

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Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

082R | The Paradox of Choice Jul 06, 2018

082R | Discussion of Brad and Jonathan’s purchasing habits, messages from the ChooseFI community, benefits and drawbacks of roboadviors, and a summary of capital gains harvesting.

Jonathan gives a review of some travel hacks on a recent trip to Chattanooga, TN.
Capital One Venture Card allows users to redeem miles for nearly any travel cost.
PSA: bring a copy of your child’s birth certificate if you’re traveling.
Review of Monday’s episode with Dani and Laura, Jonathan and Brad’s wife.
Jonathan is excited about the way Brad and Laura cut down on choices, purchases and decisions for themselves and their children.
Brad aims to keep his life simple, particularly in regard to purchases.
Enjoying the journey is crucial; obsessing over small purchases probably takes away from someone’s enjoyment of life.
During your pursuit of FI, it’s important to remember your “why”.
Laura shops for the future, by purchasing clothes, presents, etc., way before they’re necessary, often finding items for a fraction of the normal cost.
Batch processing: blocking your time off to maximize efficiency.
Facebook Message from Jimmy: met a friend on airplane, introduced him to ChooseFI, and that friend reduced expenses and put himself on the path to FI in less than a month.
There are options for almost every financial position, to get yourself moving in the direction of FI.
Jeff, on Facebook, reports that he’s paid off $105k of student loans.
ChooseFI San Diego has a real estate meeting recently – informing people about real estate options and discussing rent vs buy, among other topics of conversation.
ChooseFI local groups will be as good as the participants want them to be.
Voicemail from Ryan: question about using roboadvisors?
Fees matter: managing accounts directly saves money.
Benefits of a roboadvisor – automated services can help with some calculations that it’s difficult to do yourself, and it sometimes make investing more accessible
Jonathan prefers and recommends M1 Finance.
Voicemail from Bonnie: selling used items through the online Varagesale platform helps her bring in a little extra income as a stay-at-home mom.
Voicemail from Anthony with questions about increasing your capital gains basis.
Capital gains are typically taxes, but if you’re in a low tax bracket, long-term capital gains are not taxed.
Previous episode about capital gains harvesting in episode 18 and 18R.

Links:

The Paradox of Choice

Betterment

Wealthfront

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

_______________________________________

For more information, visit the show notes at https://ChooseFI.com/082R

082 | A Wife's Perspective | Laura Barrett and Dani Mendonsa Jul 02, 2018

082 | Brad and Jonathan’s wives, Laura and Dani (respectively), talk about their introduction to FI, combining finances, budgeting with children, and maintaining balance.

How did Dani and Laura approach saving before meeting Jonathan?
How did Laura’s parents change careers to improve their financial status?
How was growing up in Zimbabwe different from a typical American upbringing?
What did saving money mean to Dani when she started working?
How did Dani respond to Jonathan’s initial proposal to combine finances?
When and how did Brad and Laura merge finances?
What does a typical day in Dani and Laura’s lives look like?
How does “busy” look different from when Dani and Laura were working full-time jobs?
Are kids expensive?
How do Laura and Dani budget with the extra and unexpected costs of children?
What is a “Buy Nothing” group?
How does Laura advance purchase things for her children?
Do Brad and Laura give their children many choices?
How do Brad and Laura create space in their lives to not be consumed by FI?
By saving money on unnecessary expenses, Brad and Laura can be generous and unconcerned with some of the smaller expenses that come up in life.
How does the 72-hour-rule, introduced by the Frugalwoods, make a difference for Dani and Jonathan?
How did Laura and Dani respond when Brad and Jonathan decided to leave their jobs and start ChooseFI?
Does the pursuit of FI ever get too intense?
How do Dani and Laura plan their meals and prepare ahead of time?

Links:

Stay at Home Chef

Smitten Kitchen

Kitchn

Why (and how) I Became a Work-At-Home Mom – The Frugalwoods

A letter to my 22-year-old self – Joel from FI 180

081R | The Fear of Letting Go Jun 29, 2018

081R | Strategies for decluttering and living with less (reflecting on Cait Flander's interview with us on Monday), life hacks from the community, and a winner for the free ticket to CampFI in Joshua Tree!

The ChooseFI community is growing and gaining national attention.
- How This Couple Saved $1 Million in 11 Years and Became Financially Independent Before 40
- Nine Money Podcasts You Should Be Listening To
Local Groups are really effective in some parts of the ChooseFI community.
Jonathan joined some members of the Richmond local group to purchase a mosquito fogger to share between them.
What else could be a shared purchase?
Cait Flanders, from Monday’s episode, talked about taking control of your life, and decluttering her whole life.
How do you take control of your life?
Could you live with less?
Why doesn’t Brad use a budget, and how does he still manage his finances well?
Why does Brad hope his daughter reads Harry Potter?
Voicemail from Kristyn, from fortheloveoftidy.com and the Spark Joy podcast, talks about her FI progress, and tips for decluttering:
- Map out your ideal living environment; think about how your clutter fits into that.
- Ask yourself tough questions about the clutter in your life.
What is tough about decluttering for Jonathan?
How does Kristyn keep track of her “bit-sized wins”?
Why did Jonathan finally get rid of his grad-school notes?
Voicemail with a suggestion based on advice from The White Coat Investor, to employ children as models for his website, to add legitimate money to his kids’ retirement accounts.
Facebook post from Heather about how her son found a job without a car.
Message from Louima, who was inspired by Cait’s Monday episode, and is contemplating a reduction of her FI number.
Email from Mark with some FI hacks:
- Food:
- - Choose smaller dishes
  - Put chips, pretzels, etc., in a dish, don’t eat directly from the bag
  - Don’t eat alone: Why Eating Alone May Be Bad for You
  - Don’t eat while watching TV: The Danger of Eating in Front of the TV
- Finances:
- - Use credit cards for travel rewards
  - Shopping portals – some opportunities to earn 4-10x more points
  - Earny: a price drop protection app
  - Feex.com: finds hidden fees in your investment accounts
Update: Brad is working to establish a scholarship for a Treehouse student to learn coding, in partnership with Every Child’s Hope.
Winner of the ticket to CampFI in Joshua Tree: Danielle!

Links:

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

081 | The Year of Less | Cait Flanders Jun 25, 2018

081 | Cait Flanders, author of “The Year of Less”, talks about building $30k of consumer debt, challenging herself to go two years without shopping, and learning how to be comfortable in her own skin without the distractions of consumerism.

For more information, visit the show notes at http://ChooseFI.com/081

080R | A Case for Survivor Compost and 2nd Generation FI.output Jun 22, 2018

080R | Conversation about teaching your children to save and invest, healthcare options, and an argument in favor of home gardening and composting.

Brad contemplates applying for “Survivor”.
Review of Monday’s episode with Khai from AlabaMalaysia.
How does Jonathan use the idea of “anchoring” in his own life: setting big goals so that even if he misses, good things still happen?
Brad and Jonathan talk about how they would set little, achievable goals, to reach a larger, long-term goal.
Jonathan talks about answering the question “What do you do?”, with comments from the Facebook group.
How does Brad have bank account and investment accounts set up for his children?
Is there a better way to have those accounts set up?
Blain, from the Facebook group, wonders whether his son should start investing with a Vanguard account, or an M1 account?
Contributions made to a Roth can be withdrawn penalty free.
What are the best ways to support your children and help them save money, as 2nd generation FI?
Voicemail from Jacqueline asking about financial education apps for youth.
“7 Fun Money Apps for Kids” from U.S. News
- PiggyBot
- FamZoo
How important is it to teach your children about not only budgeting to save money, but to be generous?
What is Brad considering in regards to his family’s health insurance: HSA, health share, or considering health insurance for a small business?
What are some complications with a health share?
Email from Karen, about the value of gardening and composting.
- Gardening Tips from Karen
Is composting addicting?
Jonathan tries to convince Brad that gardening and compositing is simple enough to start now.
Leave a ChooseFI review to enter the drawing for a ticket to CampFI in Joshua Tree, or to receive a book.

Links:

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

080 | FI is an Amazing Race | AlabaMalaysia Jun 18, 2018

080 | Khai Shing, a former contestant on The Amazing Race, and blogger at ALABA+MA+LAYSIA, talks about balancing her pursuit of FI while finding ways to travel, worldwide, at discount prices.

Did Khai start with global travel, or with The Amazing Race?
Took about 3 months from applying to The Amazing Race with her twin brother, to being selected for the show - traveling all over China.
Khai grew up in Malaysia, and plans to return there for retirement, once she achieves FI.
How did Khai and her brother set themselves up to be selected from their video application?
What was the highlight of The Amazing Race for Khai?
Is it easier to achieve FI living in Malaysia versus living in the US?
When Khai calculates her FI number, does she base her living expenses off US expenses, or the expected cost of living in Malaysia?
Why does Khai use 35x as her multiplier for calculating a FI number?
How long is Khai’s FI path?
How does world travel fit into Khai’s lifestyle and financial plan during the next 8 years of her path?
How and when did Khai and her husband embrace the FI mentality?
How does budgeting and saving work for Khai’s family?
How do Khai and her husband manage travel with family and work?
How does Khai travel the world for $1,600?
A layover is less than 24 hours, but a stop over a has much more relaxed time frame.
United Airlines had an “excursionist” perk - a free stopover in a city within the same region: Excursionist Perks.
Where will Khai go next?
What perks still exist with Alaska Air?
What does Khai like to see and do when she travels to a new country?
Why does Khai like to document her trips on her blog?
What are Khai’s favorite experiences from her travels?
Khai met her husband during an exchange program to the US.
What advice does Khai have with regard to keeping life balanced?
Gratitude: “when we focus on appreciating and being content with what we have in life, it helps us to focus on what's truly important.”
“The fact that we can even dream about FI, and a good chance to make it a reality is a great privilege that we should be thankful for.”

Links:

MadFIentist

The Lifetime Table

For more, go to http://ChooseFI.com/080

079R | Personal Brand Jun 15, 2018

079R | Highlights of Monday’s episode with Tim & Amy Rutherford, discussion about healthcare, additional podcast recommendations, and voicemails from the ChooseFI community.

For more information, visit the show notes at http://ChooseFI.com/079R

079 | Embracing Retirement | Amy and Tim Rutherford Jun 11, 2018

079 | Tim & Amy Rutherford talk about early retirement, living with lower expenses and a busier schedule of fun, free activities, and what life changes they made to get there.

How did Amy and Tim meet and what were their spending habits at the time?
What did “frugal” look like for Amy and Tim initially?
With enough money in the bank, cutting their spending gave them an opportunity to retire almost as soon as they became aware of financial independence.
Managing spending is equally as important as replacing income when it comes to reaching financial independence.
Optimizing life is one of the most enjoyable things Amy & Tim ever did.
What factors did Tim & Amy consider prior to leaving the workforce?
- Physical health
- Mental health
How did a chart help Amy get excited about saving?
“What’s tracked and measured can be improved.”
There are fun, free activities in every part of the world.
How do Tim & Amy fill up their days now that they’re retired?
- Walking
- Inviting friends for dinner
- Finding local activities
Who are Tim & Amy’s “tribe” and how do they find them in new cities?
What does it look like for Tim & Amy to be house sitters?
- They watch houses and pets, for free, with a place to stay for free.
How much are Tim & Amy spending now, and how did they get there from $115k?
Tim & Amy are actually living below their current budget – they aren’t missing out on things they wish they weren’t.
“I want to walk the world while I still can.”
How do Tim & Amy describe their retirement?
Would Tim & Amy consider selling their house and traveling full time?
How would people get started with house sitting?
- House Sitting Magazine
- House Sitting World
Tim & Amy buy experiences instead of things.

For the links to resources mentioned in this episode, go to http://ChooseFI.com/079

078R | College Hacking Toolbox Jun 08, 2018

078R | Lots going on in this episode with a recap of Episode 78 with Travis Hornsby about Student Loan Debt Repayment Options.

But also, Brad sold his house and Jonathan has become a “rockstar” at selling things on Craigslist.

For more information, visit the show notes at http://ChooseFI.com/078R

078 | Student Loan Debt Repayment | Travis Hornsby Jun 04, 2018

078 | Travis Hornsby, founder of StudentLoanPlanner.com, talks early retirement, traveling Europe, and developing a passion for helping people crawl out of student loan debt.

What you'll hear on today's show:

Why did Travis attempt retirement at 25?
If you’re unhappy before reaching FI, will you be happy afterward?
Where did Travis’ frugal tendencies come from?
How did Travis get paid to go to college?
Do many universities offer full scholarships, and where should students find that information?
Does attending an Ivy League university make a difference?
Travis retired with $230,000 saved, with a plan to spend just 20k a year.
Did Travis have a long-term plan for his retirement?
Living expenses in the United States are high relative to many other places in the world if you’re an adventurous person.
Why did Travis’ job performance improve after he decided to quit his job?
If you’re on the path to FI but haven’t made it yet: develop a product or service that you’re passionate about and give yourself a year or two of buffer during which you don’t depend on income from your venture.
How did Travis commit himself to helping people with student loan debt, having never been in debt himself?
How much research did Travis have to do in order to ensure his student loan spreadsheets were accurate?
Why didn’t Travis’ father-in-law give his initial blessing to Travis marrying his daughter?
How did the Student Loan business grow?
If you have less than 100k of student debt, your best option is likely to refinance for the lowest possible interest rate and pay it back as quickly as possible?
If you owe less than double your salary and you’re not working at a not-for-profit or for the government, you should probably refinance.
If owe more than twice your income with federal loans, there are loan forgiveness options, depending on your type of work.
Is loan forgiveness guaranteed, and who can qualify?
Adjustment to loan forgiveness policies will impact students taking loans beginning in July 2019.
How do Travis’ suggestions change if someone has private loans?
Federal loans provide the most flexibility for repayment or forgiveness.
Two recommended choices:
- Pay back loans as aggressively as possible
- Pay minimums, maximize forgiveness

Resources mentioned:

Student Loan Planner

Travis@studentloanplanner.com

Physician on Fire

Mr. Money Mustache: From Zero to Hero

For more information, visit the show notes at http://ChooseFI.com/078

77R | Side Hustle Coaching Series Part 2 | Alan & Tallis Jun 01, 2018

077R | An second part to the conversation between ChooseFi community member Tallis, who teaches dance classes in retirement facilities, and Pop-Up Business School founder Alan Donegan, to help get Tallis’ side hustle off the ground.

Precursors to this episode: Episode 30 and Episode 56.
Tallis gives an update on her side hustle to-do list.
Client feedback: the questions you ask impact the results you’ll get.
What is the best way to sell Tallis’ dance classes to the retirement facilities.
Tallis continues to wonder how to best monetize her service?
Tallis hopes to facilitate workshops to train dance-class teachers.
Alan and Tallis previously discussed securing sponsorship, potentially from pharmaceutical companies.
Currently, Tallis’ dance class is endorsed (and paid for) by the American Parkinson's Disease Association, so classes are free for participants.
Could Tallis collect a fee from participants?
Most important considerations right now: how is going to pay, and how much to charge?
Different payment models can impact clients’ commitment to the classes.
Training an organization to facilitate its own courses will pay significantly more than providing courses directly to individuals.
How can Tallis decide on a price for her workshops?
People equate cost to value: if you charge too little, they’ll think the product isn’t valuable.
Alan recommending contacting potential clients (retirement communities) that are well outside her target geographical location in order to practice her pitch and get feedback on potential pricing.
Pricing has a lot to do with confidence.
Successful business models have repeatability.
Marketing is rarely starting from the ground up: find other businesses in a similar space, or businesses that are doing something that you think would be really effective the space you’re targeting and start there.
Pitch tip: don’t allow your voice pitch to go up when giving your price. Use a statement tone that sounds confident – even from beginning to end of your sentence.
What’s up next: get feedback from local contact about other offerings.
Go big! Don’t offer your service to just a few potential clients.
Expect that it’ll take 1-5 months to get the program from start to point of sale.
The only way to know if your business will be successful is to ask people to buy; before that moment, feedback is hypothetical.
Tallis is part of the Des Moines ChooseFI local group – contact her there.

077 | Advanced Travel Rewards From 3rd Generation FI | Marla Taner May 28, 2018

077 | Experienced travel hacker and world traveler Marla Taner shares story of reaching financial independence, and her best tips for getting to Hawaii, Costa Rica and the Caribbean with minimal expenses, using credit cards points and air miles.

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Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

076R | Race or Journey? May 25, 2018

076R | Brad and Jonathan brainstorm ways to implement local adventure into their own lives and the lives of the ChooseFI community. Also, achat about high school reunions, local libraries, and a few clarifications about 401k contributions.

Jonathan's 26-year-old sister just hit an 85% savings rate.
Living at home can be super helpful to the recent college graduate, or young person entering the workforce.
Getting to $100k net worth is the hardest part: after that, compounded interest starts working for you.
Brad signed up his daughter for www.code.org, a website that teaches coding paired with Minecraft.
Review of Monday’s episode with Mrs. Adventure Rich.
Getting the right mindset is the most important part of getting on the path to financial independence.
How does Brad feel about not having a FI number or date?
Is the pursuit of financial independence a race or a journey?
What was positive about the way Mrs. Adventure Rich’s coworker introduced her to FI.
How has Mrs. AR lowered the barrier of entry for local adventures?
How can local ChooseFI groups apply these ideas to exploring their own cities?
How does the idea of exploring your own city connect with the idea of intentionally creating memorable moments, as introduced by Chris in ChooseFI episode 71.
Adventure is anything that makes you feel like, “Hey, this is really living.”
Have we traded adventure for convenience?
How can someone plan for those things that truly bring value to their life?
Check out ChooseFI episode 37, with Scott, talking about rolling out the red carpet for the valuable things in your life.
Follow up from Robert, from The College Investor: how much student loan debt has the ChooseFI community paid off?
Voicemail from Suzanne: in addition to physical books, her local library often provides access to online newspapers, to online language programs, STEM programs for students, as well as actual after-school programs for students from the public schools.
Voicemail from the Peerless Money Mentor : the local library in Baton Rouge, LA, provides some access to Treehouse coding courses.
How would Brad or Jonathan describe their lives at a high school reunion?
Once you have all your financial needs taken care of, what do you want to do? What's your purpose?
Email from Danny: how do employer contributions impact a 401k?
Employer matched contributions do not count toward the $18,500 yearly limit for your 401k.
There are some additional ways to maximize full contributions to your 401k, up to $55k a year.

Additional links:

The Reluctant Frugalist

076 | Planned Spontaneity | Mrs Adventure Rich May 21, 2018

076 | Mrs. Adventure Rich talks about making the choice to live an adventurous life, her family’s pursuit of financial independence, and finding a balance between maximizing financial opportunities and living a happy, fulfilling, high quality of life.

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

——————-

There are a lot more details over at http://ChooseFI.com/076

075R | Mainstream Adoption May 18, 2018

075R | “Personal finance is becoming financial independence.” Financial independence doesn’t necessarily mean retiring early; it means allocating your resources in the way you see fit.

This is just a taste of what we discuss in this recap from Monday's interview with Brian Feroldi from The Motley Fool.

Jonathan talks about blowing his budget on breakfast at the cold bar in Wegman’s, while Brad thinks that grocery shopping at Wegman’s is the same cost as Walmart.
Brad talks about meeting strangers who also in the FI community.
Brad and Jonathan wonder if financial independence is on the edge of mainstream adoption?
“Personal finance is becoming financial independence.”
Financial independence doesn’t necessarily mean retiring early; it means allocating your resources in the way you see fit.
Review of Monday’s episode with Brian Feroldi, about individual stock investment.
Do Brad and Jonathan own individual stocks?
What are the challenges to getting started with individual stocks?
Are individual stocks better as a hobby?
What are the strengths of the way Brian described investing in individual stocks?
A comment from Ray, in the ChooseFI community, that individual stocks requires too much individual management.
Cody wonders whether the current bull market might be playing in favor of individual investors, without having yet felt the consequence of the inherent risk?
How does Jackie, another ChooseFI community member, evaluate investment opportunities, and how did she get comfortable making investment decisions?
Tim reiterates the value of the Motley Fool, and the recommendations they make.
Frank, another community member, is concerned about a new investor’s learning curve: the time and money it takes to learn enough about individual investing to find success.
Is it possible to recognize large-scale Enron-type fraud by looking at investment research?
If you hold stocks from companies in similar fields, would it be better to simply hold a sector index stock?
Mr. 1500, Karl, worries about long-term investing with individual stocks.
Knowing when to sell individual stocks is an almost impossible task.
How are Brad and Brian getting their children started with investing?
How much did the ChooseFI community respond to the Treehouse scholarship proposal?
How can ChooseFI potentially connect students to mentors?

For more information, visit the show notes at http://ChooseFI.com/075R

075 | The Unfair Advantage of the Individual Investor | Brian Feroldi May 14, 2018

075 | Brian Feroldi talks through the advantages and disadvantages of individual investing, the realistic expectations for performance, and his strategies for beating Wall Street.

Professional money managers operate under different parameters and mindsets than an individual investor
Stockbrokers must make decisions based on short-term returns
What other disadvantages do professional money managers face, in contrast to individual investors?
How do professional money managers truly spend their time and earn their money?

...and more at https://ChooseFI.com/075

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Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

074R | ChooseFI Scholarship May 11, 2018

074R | An update the community on recent activities, discussion about the opportunity cost of college and potential alternatives, a ChooseFI scholarship announcement, and a few voicemails from the ChooseFI community.

Brad recaps his trip to the Berkshire Hathaway shareholders meeting in Omaha, and a visit with the ChooseFI local group in Omaha
Jonathan shares how he recently cut his grocery costs by nearly $700

...and more can be found at http://ChooseFI.com/074R

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

074 | Ryan Carson | Learn to Code | Treehouse May 07, 2018

074 | Ryan Carson’s tech-education company, Treehouse, teaches computer coding as a trade skill, giving students an opportunity to enter the work force, or change careers in nine months, at a fraction of the cost of a four-year degree.

Ryan considers coding a trade skill, rather than profession that requires a four-year degree.
Ryan founded Treehouse to help people avoid student debt, get a job sooner and start saving for their 401k sooner.
There will be 1.4 million new jobs in tech, and only 400,000 will be filled by college graduates.
A trade job is composed of acquired skills, or “stackable skills”, like a mechanic or electrician.
Will the future be primarily trade jobs?
How is Treehouse different from other coding schools?
How does apprenticeship work in the tech industry?
What is TalentPath, and how does it help develop young coders?
For a skilled job, such as coding, landing a job is more dependent on a portfolio than a degree.
How does apprenticeship impact a person’s retirement savings, compared to earning a college degree?
Are there any degrees that are more valuable to a new professional than a year of on-the-job experience?
An apprentice has four more years of experience than a college graduate.
How can companies create talent, rather than hire talent, in order to compete with big tech companies like Apple, Facebook, Google, etc.?
How do employers measure a coder’s skill?
What development language is most in demand?
Trying out a school – traditional four-year university, or trade school, or treehouse – is important. How does TreeHouse allow students to do that?
Ryan started a company that facilitated large-file sending, but ultimately decided to pursue business that he felt contributed more on a human level.
TreeHouse originated from a desire to make coding education available and financially accessible to more people.
Students can trial for free. Basic treehouse course is $25 a month. Full coding school is $200 a month.
Success in life is mostly related to the ability to keep going when something is hard.
Most people are going to quit something because their internal “why” isn’t strong enough.
Coding is hard; it’s like going to the gym. Pursuing coding will require a certain amount of grit – but once you find your “why”, the grit comes.

Links to resources:

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Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

073R | How to Make Money Online May 04, 2018

073 | How do you make money online? We discuss the 7 most common ways to make money online, plus a review of Monday's interview with Jamila Souffrant from Journey To Launch.

We dive deep into making money with:

Membership sites
Digital courses
Create a product or service
Advertising
Sponsorships
Listener/Reader supported
Affiliate marketing
...and (BONUS) grow your brand and watch what opens up to you.

For more information, visit the show notes at http://ChooseFI.com/073R

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

073 | Jamila Souffrant | Fail Forward Apr 30, 2018

073 | Jamila Souffrant tells us about college internships, buying real estate right out of college, a few failed business ventures, and her decision to pursue FI, starting by saving $85,000 in the first year.

We talk to Jamila about:

How Jamila and her husband saved $85,000 in 2016
As the child of an immigrant single-mother, how did Jamila’s childhood experiences impact her college and early professional career?
Jamila shares what wealth means to her now
Failing Forward: the idea that progress is made, even if when things don’t see to have worked out

...and more at https://ChooseFI.com/073

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

072R | The Five Most Important Financial Conversations you need to have with your Child Apr 27, 2018

072R | Lively discussion about cryptocurrencies as investments, review of last week’s MidAtlantic Camp FI, and several exciting contributions and questions from the ChooseFI community.

What you'll hear in today's roundup:

Brad’s brother is visiting from Santiago, Chile – how is he managing his path to financial independence as an international teacher?
Review of Monday’s episode discussing Bitcoin with Myles Wakeham
What are drawbacks of cryptocurrency?
Is Bitcoin a good investment, or is it just a gamble?
How much energy is expended in the global mining of Bitcoin?
Michelle, from the ChooseFi community, wonders if Bitcoin’s apparently lax regulations (compared to companies like PayPal) opens it up to be used for terrorism and other illegal activities?
William suggests to Jonathan that regulation of Bitcoin is nearly inevitable, exposing investors to potentially difficult scenarios in regards to both taxes, and simply converting money back into tangible currency.
Brad and Jonathan attended the MidAtlantic CampFI event last week.
Tickets for SouthWest and South region CampFIs are still available here: CampFI
Steve tells listeners how he nearly eliminated a $1,900 tax bill by contributing to his Health Savings Account, prior to the April 17 deadline.
Brad talks about Camel Camel Camel, an Amazon product price tracker.
Brad is shocked about how much prices fluctuate on Amazon.com.
From Kelly: What 5 bullet points would ChooseFi give to college-bound students?
- Save at least 50% of your income (avoid large housing and auto payments).
- Consider “opportunity costs”: Every dollar you earn in your teens and 20s is worth more than later in life.
- Long-term, low-cost investing: ride the market through decades.
- Your career is a tool to get you to financial independence, but don’t just rely on your career as a sole source of income.
- Think about life a little bit differently: think at things through the lens of FI
Voicemail from Jim listing two careers that provide a great path to financial independence
- Firefighting – government pension, two 24-hr shifts a week
- Emergency room nurse – takes local “travel” assignments for double pay with 3 shifts a week
Jonathan is excited about the Giant Ocean Clean Up Machine, which will soon set sail to begin collecting plastic from the ocean, and is expected to collect 5,000kgs per month.

Links from things mentioned in the show:

It’s Like Summer Camp for Money Nerds: My CampFI Review

The Revolutionary Giant Ocean Cleanup Machine Is About To Set Sail

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

072 | Bitcoin| What Am I Missing? | Myles Wakeham Apr 23, 2018

072 | Bitcoin, should you Buy it? Myles Wakeham tells us how he discovered Bitcoin, how and why cryptocurrencies have to value, and gives us a nuanced perspective of where cryptocurrency might go in the future.

How did Myles, a software developer, come to invest in Bitcoin?

Myles spent years figuring ways to pay his Bangladeshi software developer, until mid 2011, when his contractor discovered Bitcoin as a more effective method of payment.

There's much more to this story - and to learn about cryptocurrencies, so check out the extensive list of notes at http://ChooseFI.com/072

071R | The Real Value of Soft Skills Apr 20, 2018

071R | Brad and Jonathan compare their college experiences to Chris Hutchins’ from the Monday episode, they discuss the importance of owning your own FI decisions, and we get updates from several members of the ChooseFI community.

Brad considers starting a blog for his daughter as second-generation FI.
Review of Chris Hutchins’ episode last Monday.
Brad compares his experience of packing meals ahead for vacation to Chris’ grandparents growing up.
What is value of cultivating relationships, and how did Brad find success in that?
What would Jonathan do differently if he was going to redo college?
How can students optimize the expense of college?
What was the benefit of Jonathan attending community college for two years prior to completing his degree at Virginia Tech?
Take an inventory of your all your skills, to market yourself for future opportunities.
Chris got his early start(s) because he made a significant effort to stand out among his peers. How can you stand out when looking for opportunities?
How do Brad and Jonathan explain their somewhat abnormal financial choices, in pursuit of financial independence?
Don’t be ashamed of your decisions – you need to feel comfortable with your choices.
Scott, a writer at Simply Finance, emails to say that listening to the ChooseFI podcast helped him clarify his beliefs and decisions about personal finance.
What is the worldview that matches up with pursuit of financial independence?
How are Brad and Jonathan processing Chris’ idea of creating memorable moments?
What problems did Chris seek to solve with his Grove financial planning business?
Jared, blogger at Fifth Wheel Physical Therapy, introduced Jonathan to M1 Finance.
What is M1 Finance, and what does it offer its customers?
M1 Finance allows customers to purchase fractional shares, and at a certain point offers loans backed by your own investments.
Voicemail from Tim, who is chipping away at his student debt, working toward his family’s FI number, and shares a little about his investment habits.
People get to “enough” long before they get to “rich”.
Another voicemail from a 29-year-old military man named Luke, who asked for house-hacking ideas a few months back via the ChooseFI Facebook, and reports back now that he opted to live in a renovated, vintage camper trailer.
An encouraging review from Arthur, who is making life changes in pursuit of FI.

Links:

Bigger Pockets

Scott’s Blog: Simpli [FI] nances

Fifth Wheel Physical Therapist

M1 Finance

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

071 | Silicon Valley FI | Chris Hutchins | Grove Apr 16, 2018

071 | Chris Hutchins, founder/CEO of Grove, a new, optimized financial planning company based in San Francisco, talks about how a life and career of entrepreneurship led him to the FI community, and his current business venture. And, how his new company meets the needs of the average person better than a traditional financial planner.

What you'll hear in this episode:

Is Chris a risk taker or financial conservative?
How did Chris find his way into the financial planning and optimization world?
Was Chris an entrepreneur growing up?
Chris got his career started through relationships built in college – how can building relationships help open doors?
Passion for entrepreneurship led Chris to make a move from New York to Silicon Valley.
Although most people in the Silicon Valley have tech-related qualifications, Chris found his foothold in business development.
How did Chris land his first job in the Silicon Valley?
What steps did Chris take to earn an income after he was laid off in 2008?
Did Chris’ wife buy into his ideas of financial optimization, and how has that developed within their relationship?
What are the drawbacks or negative sides of frugal and financial optimization in a high-cost environment?
How does Chris create a “memorable moment” each month?
Chris found himself as a source of financial consultation for his friends, and his current business idea grew from there.
The world of financial planning, in its current state, is focused on the already wealthy, and the exchange of information between planners and customers is both inefficient and confusing.
How does Grove change the process of financial planning, and how does the software help Grove work more efficiently?
Grove costs $600 a year – significantly less than a traditional financial planner.
What services does Grove provide its customers?
Financial goals are really just sums of money that someone wants to set aside, no matter the purpose.
Why should someone in the FI community consider using Grove’s services?
How do Grove advisors function a bit like personal trainers?
On a personal level, how is Grove a different venture for Chris, different from some of his previous companies?
Would Chris take an offer to buy Grove?

Resources mentioned in this episode:

070R | Left Behind Apr 13, 2018

070R | Updates from Brad and Jonathan, review of Vickie Robin’s episode, discussion of how ChooseFI aims to handle politics, and more updates from the ChooseFI community.

Highlights:

Brad is moving houses, making good community a priority in his family’s life
CampFi MidAtlantic this weekend is Virginia this weekend, but there’s two more this year: Aug. 3-6 in Joshua Tree, Calif., Sept 7-10 in Little Rock, Ark. More info here: CampFi
Jonathan started Skinny Waste, Fat Wallet. First episode is up on YouTube at www.choosefi.tv
Review of Vickie Robin’s episode

...and more can be found at https://ChooseFI.com/070R

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

070 |Your Money or Your Life | Vicki Robin Apr 09, 2018

070 | Author and FI pioneer Vicki Robin discusses the cultural development of overconsumption, how much is enough, and what else, besides good investments, contributes to successful financial independence?

Vicki’s story began when she invested in long-term bonds at a young age, achieving modest financial independence very quickly
Vicki and her partner, Joe Dominguez, hosted seminars about financial independence beginning in the 1980s, donating the proceeds.
What is the difference between making a living, and making a “dime”?
How did the culture of over-consumption develop during the past century?
Once the average person spends 20 years preparing for adulthood, and another third of your life sleeping, how much time do we really have for living?
What is the idea of the Real Hourly Wage, and how could it impact the way we spend money?
Why might we need to be “deprogrammed” from consumption?
What is the Fulfillment Curve and what is the difference between a “cheap thrill” and real satisfaction?
How does consumerism develop throughout life, and does it stem from dissatisfaction?
How much is enough?
Once people have “enough”, happiness actually comes from giving, not getting.
How is Real Hourly Wage calculated?
What needs and identities are neglected when we overspend our hours and consciousness on our jobs?
How do people confuse work, jobs, and income?
Finding passive income helps to separate jobs from income.
What does Vicki enjoy about finding community with the world of FI?
Community is currency – money isn’t the only element of becoming independent.
How do meaningful relationships developing into situations of Mutual Aid, and how does that impact a person’s living costs?
As a leader in the FI community for about 30 years, what does Vicki think it will take to create lasting, cultural changes?
In order to change the way the world consumes, personal change is necessary, but not sufficient.
How does universal health care impact FI in the US?
Will FI become mainstream?
Talking about our relationship with money in a first step toward creating lasting change
Sharing: Half the cost and twice the fun.

Links to things mentioned in the show:

Book on Amazon: Your Money or Your Life

Book on Amazon: Dying for a Paycheck

Website: Millennial Money

069R | How to Start a Blog Apr 06, 2018

069R | We discuss why and how of starting a blog or website.

What you’ll hear on today’s show:

Review of Monday’s episode
How Michelle lives her lifestyle by choice
Why it’s a great idea to start a blog
The key when creating content
Why now is the best time to get started
How affiliate marketing works
The 4 things you need to start your blog
The total cost of starting up
Why it takes years to be successful
How building this skill set opens doors
iTunes and book giveaway

Links from the show:

Hosting platforms: Bigscoots, Siteground
Themes: Generate Press, Elementor
Email list providers: Mailchimp, ConvertKit
ChooseFI Youtube Channel

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

069 | Make $100K a Month Blogging | Michelle from Making Sense of Cents Apr 02, 2018

069 | Michelle has a very successful blog, Making Sense of Cents. She shares her lifestyle as a digital nomad and how she currently manages not just her blog, but her whole life living full-time in an RV.

What you’ll hear on today’s show:

Interview with Michelle from Making Sense of Cents
Michelle’s backstory
The success of her personal finance blog
How long it took for her blog to take off
How she got involved in the community
When she first started making money and how
Why she feels she attracts an audience
Her secret sauce to blogging
Her content strategy
The different inflection points along her blogging journey
Different blogging goals
What inspired her to become a digital nomad
Tips for people who want to get started with RVing
How she deals with her work life balance
Using Pinterest as a marketing vehicle
The different social media platforms she’s tried out
Her personal FI journey
Her course: Make Sense of Affiliate Marketing
Hotseat questions

Links from the show:

Michelle’s blog: Making Sense of Cents
App: Gasbuddy
Heath and Alyssa
RV Mobile Internet
Michelle’s course: Make Sense of Affiliate Marketing
Think Save Retire
Cait Flanders
Our Next Life
Financial.com
Why Would You Make $100,000+ a Month and Live in an RV?

——————-

Thank you for being a part of the ChooseFI community! If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

068R | 2 Worlds Collide Mar 30, 2018

068R | The next steps after Dave Ramsey’s Peace University, the importance of being present and food budget hacks.

What you’ll hear on today’s show:

Review of Monday’s episode
Brad’s life improvement thanks to FI
How to use Dave Ramsey’s lessons
Question from Chris about Dave Ramsey
What the next steps after the Peace University look like
Why and how credit cards can be useful
Jill talks about being nervous going back to credit cards
Michelle says the episode 68 is great to send to Dave Ramsey fans
The great advantages of working on a budget as a couple
Comment from Nick about paying off a mortgage
How FI is not about deprivation
The importance of being present
Voicemail from Louisa on a food budget hack
The video series on different food hacks
Voicemail from Ashley on her frugal win of the year
College hack on graduate assistantships
An article on the dangers of robo advisers
Voicemail from Jesse about optimizing cashbacks
iTunes and book giveaway

Links from the show:

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

068 | Financial Peace Graduates | What Next? | Andy Hill Mar 26, 2018

068 | Bringing your spouse on with FI, the benefits of paying off your mortgage early and how to follow Dave Ramsey’s steps

Highlights from the show include:

Andy’s blog and podcast
How he brought his wife on board with FI
The monthly budget party
Benefits of paying off a mortgage early
Following Dave Ramsey’s steps

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

067R | Finding Your Superpower Mar 23, 2018

067R | Getting comfortable with being uncomfortable, hacks to save money on everyday electronics and using donor advised funds to optimize tax payments.

What you’ll hear on today’s show:

Jonathan optimizing his house insurance
Comment from Katie on using diamonds on engagement rings
Examples of velvet ropes
The importance of getting comfortable with being uncomfortable
Sara shares a DIY success
Voicemail from Daniel about saving money on everyday electronics
Jaclyn share’s her success from a salary decrease
Voicemail from Steven on using donor advised funds to avoid capital gains tax
Alan saves money by timing the cash flows
Kevin talks about creating a better version of health insurance
iTunes review and book giveaway

Links from the show:

Book: Predictably Irrational
How we make meaningful and tax efficient charitable donations by The Frugalwoods
The donor advised fund: A smarter way to give by Physician on FIRE

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

067 | Raptitude and Free to Pursue Mar 19, 2018

067 | David and Helene talk about consumerism, getting out of one’s comfort zone and the importance of simplicity.

What you’ll hear on today’s show:

Discussion with David and Helene
How consumerism makes us buy more
Controlling impulses
How Helene constantly gets out of her comfort zone
Mental hacks for self control
Hedonic adaptation
Complexity vs simplicity
David’s thoughts after blogging for 9 years
The importance of focusing on what lights you up
Hotseat questions

Links from the show:

David’s blog: Raptitude
Helene’s blog: Free to Pursue
Helene’s blog post: Diamonds - Nothing but a Brilliant Illusion
JL Collins
David blog posts:
- The Art of the Hard Part
- Go Deeper not Wider
The Frugal Fringe
Humans are not Broken
Seth Godin
10 Reasons You Should Never Get a Job
Happy Money by Elizabeth Dunn
David on Twitter
Helene on Twitter

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

066R | Letting Go of the Emergency Fund Mar 16, 2018

066R | Understanding emergency funds, investing in your house and some college and library hacks.

What you’ll hear on today’s show:

Review of Monday’s episode
Different scenarios for using emergency funds
Where to put your emergency fund
Jennifer asks a question about needing the fund in 2-3 years
The different options to optimize your emergency fund
Voicemail from Paul on whether a house is an investment
Voicemail from Melissa on Mrs Frugalwoods’ journey with make-up
Voicemail from Captain DIY on college hacking with trade schools
Chris pays off $100,000 in debt
Jessie has a great library hack
iTunes review and book giveaway

Links from the show:

ChooseFI events
Paul’s podcast series: Your Home is NOT an Investment! Unless...
Captain DIY articles
ChooseFI debt month

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

066 | The Emergency Fund...Is it a Bad Idea? | Big ERN The Reveal Mar 12, 2018

066 | Big Ern reveals his identity, explains the different risks when retiring and why a home is a good investment.

Highlights from the show include:

Big Ern’s identity reveal
His blog on retirement
The anxieties of retiring early
Emergency funds
The benefits of home ownership

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

065R | Don't Waste It Mar 09, 2018

065R | College hacks, a great credit card debt hack and the importance of not wasting your privileges.

What you’ll hear in today’s show:

Voicemail from Chris about replacing broken items
Review of Monday’s episode with Mrs Frugalwoods
Why you shouldn’t waste your advantages
Voicemail from Steve about educational programs
The student debt loan movement happening in March
Voicemail from Noah about a college hack
Voicemail from Millionaire Educator on another college hack
Nicholas’ hack on optimizing credit card debt
Voicemail from Kelly about tax liability vs withholding
Apple Podcasts review and book giveaway

Links from the show

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

065 | Meet the Frugalwoods | Achieving FI Through Simple Living Mar 05, 2018

065 | Mrs Frugalwoods talks on her book and blog, frugality as a lifestyle and the great benefits of being frugal.

Highlights from the show include:

Mrs Frugalwoods’ book and blog
Her relationship with money
Changing her lifestyle to frugality
The benefits of living frugal
The amazing influence of frugality on her family

For more information, visit the show notes at http://ChooseFI.com/065

064R | Board games | The Resurgence Mar 02, 2018

064R | Chautauqua plans, board game recommendations and a discussion on optimizing travel rewards

Highlights from the show include:

Warren Buffett’s Annual Letter to Shareholders takeaways
Chautauqua plans
Board game recommendations
Travel rewards discussion
Crowdsourcing geo-arbitrage

——————-

For more information, visit the show notes at http://ChooseFI.com/064R

064 | Chautauqua | Oh The Places We Will Go Feb 26, 2018

064 | Chautauqua organizers join us on a call to share what the event is about, the great community that attend Chautauqua, and plans for its future.

Highlights from the show include:

How Chautauqua got started
The structure of the event and what a typical day looks like
The amazing community
Examples of the exceptional people who attend
What the future plans look like

For more information, visit the show notes at http://ChooseFI.com/064

063R | Create Your Own Luck Feb 23, 2018

063R | How to create your own luck, the glidepath to success and some life lessons from Brad.

Highlights from the show include:

What luck and opportunity really mean
Having high expectations from life
Brad’s definition of creating luck
Life lessons from Brad to his daughters

For more information, visit the show notes at http://ChooseFI.com/063R

063 | Scott Trench | Set For Life Feb 19, 2018

063 | An interview with Scott Trench from Bigger Pockets on the creation of good luck, his background and journey to FI and using house hacks to reach wealth.

This episode covers:

1) Scott’s book and background

2) His definition of luck

3) The stages of wealth creation with real estate

4) Becoming a life long learner

5) The core message of FI and the community

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

062R | Change The World Feb 16, 2018

062R | We review Monday’s episode with Travis on the Playing with FIRE documentary, a voicemail about the new tax law and a discussion about tracking business expenses.

On today’s show we cover:

Documentary Playing with FIRE
Some great ways to practice gratitude with children
How film is a great way to market an idea
How the community of FI can change the world
Review of Monday’s episode with Travis
How Scott and Travis met
Voicemail from Scott on scrutinizing his own choices and how he’s grateful to have the FI community
Voicemail from Terry on starting up a local FI group in his town
Jonathan asks Brad how to track business expenses
Detailed voicemail from Shane on the new tax law
iTunes reviews

Links from the show:

Buy nothing Facebook Groups
Playing with FIRE documentary
Episode 37 with Scott
Episode 62 with Travis
Chautauqua tickets
To start up a local group email: feedback@choosefi.com
The ChooseFI local groups
Shane Mason

For more information, visit the show notes at http://ChooseFI.com/062R

062 | Manifest Destiny of FI | Travis Shakespeare Feb 12, 2018

062 | Travis Shakespeare is creating the Playing with FIRE documentary.

He talks about discovering FI, how FI has the power to change the world, and how one misinterpretation caused him to reach FI much sooner than he should have.

On today’s show we cover:

Interview with Travis Shakespeare
His approach to creating the Playing with FIRE documentary
What drew him to the media industry
The power of story
How he wants to the documentary to create a call to action
How he discovered FI
The FI community as a subculture and how it’s like an experiment
Why the documentary will get FI closer to a mainstream audience
How FI has the power to change the world
How Travis came about creating the documentary
Hotseat questions

Links from the show:

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

061R | Bandwidth Feb 09, 2018

061R | We recap Monday’s episode with Cory Mascara about mindfulness with FI, a voicemail about a medical tourism hack and a method to teach your kids money management at a young age.

This episode covers:

An episode soon to come with Danielle and Laura
Review of Monday’s episode
The importance of controlling only what you can control
A voicemail about second generation FIRE
A voicemail about a medical tourism hack

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

061 | Mindfulness | Cory Muscara Feb 05, 2018

061 | Mindfulness Coach Cory Muscara shares his background as a monk, how mindfulness links with FI and the process of meditation.

This episode covers:

Cory’s background meditating for 6 months 
How he got through with it and the lessons learnt 
How he discovered FI and how it links to mindfulness 
Figuring out what comes after FI 
How people can get started with meditation

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

060R | HealthCare Vs Health Insurance Feb 02, 2018

060R | We roundup Monday’s episode about medical tourism with a discussion on more hacks, having more power over your job and the importance of the talent stack.

This episode covers:

Jonathan’s new morning routine
The impact of medical tourism and how we can use it
The talent stack
Voicemails on life hacks and the power of the FI community

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

060 | Medical Tourism | Myles Wakeham Jan 29, 2018

060 | Myles Wakeham shares the little-known advantages of medical tourism, how he covers his medical bills and his personal journey to FI.

This episode covers:

Myles’ personal journey to FI
How he discovered medical tourism
The huge benefits of traveling abroad for medical treatment
His investments in Bitcoin
How he plans for adverse events

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

059R | Challenge Yourself | Leverage the Power of the Hive Mind Jan 26, 2018

059R | A review of Vincent Pugliese's interview, the satisfaction of DIY projects, and voicemails about financial coaching and international teaching.

On today’s show we cover:

Doing more ChooseFI Richmond meetups
The limiting beliefs of not wanting to learn
The satisfaction that comes from DIY
The importance of a legacy binder
A review of Monday’s episode
How Vincent is all about relationships
How his outlook of life completely changed with two inflection points
Why FI not only improves yourself but also your family
What living on the other side of FI looks like
Why the range of choices at FI keep you busy
The Skinny Waist Fat Wallet Challenge
Voicemail from Kelsa about the ChooseFi community and how she helps people with financial coaching
Voicemail from Nicholas and Jack about creating a partnership to buy rental properties
Voicemail from Rosemarie on her secret life hack as an international teacher
Announcements
Apple Podcasts review and book giveaway

Links from the show

ChooseFI local groups
Episode 09: Travel Rewards - Sweet Redemption
Fidsafe
Mutual Assurance
Todoist App
Episode 044: Brandon Pierce - Into the Wind
ChooseFI Facebook group
Kelsa’s podcast: The Saver and The Spender
Juan from Finance Clever
The Carson Podcast
Coach Carson

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

059 | Freelance to Freedom Vincent Pugliese Jan 22, 2018

059 | Vincent Pugliese shares his journey to reaching FI after changing his mindset towards life and starting a business.

This episode covers:

Vincent’s backstory
How he changed his thought process
How his resilience got him opportunities
The journey of starting his business
The importance of patience and persistence
How he reached FI
Why he homeschools his kids and what he teaches them

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

058R | Dark Side of Value Jan 19, 2018

058R | A review of the CampFI episode as well as a discussion on pensions and some thoughts on the value of CFPs.

This episode covers:

The community of CampFI
 Frugal wins and fails
 Voicemail about pensions
 How Grumpus communicates with his audience 
The value of CFPs

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

058 | Annual CFP Roundtable 2017 | Kyle Mast and Danny Kenny Jan 15, 2018

058 | A roundtable discussion with two CFPs, Kyle Mast and Danny Kenny, on what financial planning looks like in practice, the importance of talking to a CFP and managing different types of risk.

On today’s episode we cover:

Roundtable Q&A with two Certified Financial Planners
Kyle and Danny’s backstory
How they learned about FI
Why you should use the services of a CFP
How they act as an educator and therapist between spouses
What financial planning looks like in practice
The different CFP models
Why everyone should talk to a CFP
How to find a CFP
Why it is important that your CFP is a fiduciary and how to make sure
The changes with the new tax bill
The steps between the accumulation and drawdown phase
Biggest mistakes clients make
How to get both spouses on the same page
The importance of keeping records
How to deal with people who panic
Risk management outside of investments
Why it’s worth getting long term disability insurance
When should someone consider index funds
Importance of mixing US and international investments
Hotseat questions

Links from the show:

CPF Board
Napfa
XY Planning Network
Becoming Minimalist
The Secret to Achieving your Dreams
Danny’s info
- LinkedIn
- SBSB Company
Kyle’s info
- Clarity Financial
- Letters to Randon

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

057R | CampFi Roundtable 2017 Jan 12, 2018

057R | A roundtable discussion at CampFI including talks on the military, the flexibility of the FI plan and reaching FI before your partner.

On today’s episode we cover:

Everyone’s at a different FI stage in the community
Doug Nordman talks about the military and FI
How Doug manages his time
Natalie talks about the importance of keeping the FI plan flexible
JD Roth’s 2018 challenge and his view on the FI community
The huge wealth of knowledge and feeling of being in a tribe at Camp FI
The factor of a successful individual: resilience
Cody explains how to we could teach FI to teens
John’s dilemma on reaching FI before his wife
JD Roth explains how he manages being the only one in FI as a couple
The power of making your own job by threatening to quit
How Camp FI and the community help deal with irrational fears
How the tribe inspires people to spread the message

Links from the show:

For more information, visit the show notes at https://choosefi.com/057R

057 | The Golden Albatross | Grumpus Maximus Jan 08, 2018

057 | Grumpus Maximus shares his military background, his blog about understanding pensions, and his path to FI.

In this episode we cover

Interview with Grumpus Maximus about pensions and the military
Where the name Grumpus Maximus comes from
The Golden Albatross
Grumpus Maximus’ backstory
How he discovered the FI movement
How he wanted to quit the military but would then lose all the benefits
His relationship with Mrs Grumpus about money
How to manage your finances as a couple
What FI looks like now
How Grumpus got through the mental breakdown
His top resources for learning about FI
How to understand the pension
How the retirement system is changing for the younger generation
Grumpus presented FI to his colleagues in the military
Hot Seat questions

Links from the show

056R | Choose FI Nation Jan 05, 2018

056R | We review Monday’s "Side Hustle Coaching Series Part 1" with some talk on the workings behind ChooseFI, as well as several voicemails on travel and career hacking.

In today’s episode we cover:

Review of Monday’s episode
How these coaching calls are like Reality Internet
Taking those lessons and applying them to your personal life
How the ChooseFI business works
The process of scaling a business
Yolanda’s Facebook comment on not buying stuff she doesn’t need
How the community has great role models that motivate others
Calculating your net worth
Brad’s frugal hack and huge frugal win
Voicemail from Peerless Money Mentor on using HSA funds to hit the minimal spend limits
Travel hacking with the Southwest Companion Pass
Voicemail from Hillary about getting a degree in Finance for a career path to FI
Comment from Claudia about her business model for the classes she teaches
Voicemail from Scott about his hack when packing a bag for travel
iTunes review and book giveaway

Links from the show:

Monday’s episode: Popup Business Part 1
Clothingshoponline.com
Liberty HealthShare
Peerless Money Mentor: How I failed at investing my HSA funds
Episode 9: How to Travel the World for Free
SouthWest Companion Pass
Freshbooks
ChooseFI Travel Hacks
ChooseFI Card Ratings

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

056 | Popup Business Part 1 | Alan Donegan Jan 01, 2018

056 | A slightly different episode as it consists of a coaching call between Alan Donegan from the PopUp Business school and Tallis, who wishes to grow her business and make it profitable.

In this episode we cover:

• First episode the year: coaching call • Call between Alan Donegan and Tallis on her new business idea • Alan will walk her through ideas to grow her business • Tallis’ business: dance classes for people with Parkinson’s disease • Reasons why dance classes work • Defining who are the customers • Defining who would fund the business • Planning out Tallis’ business model • Alan’s advice to find funding using examples • How to use reports as a pitch for funding • Alan’s tips: finding social value, building an email list, scaling the system • How to show that the business idea works • The importance in adding value to people who fund the business • Where to start with PR • The branding process • The importance of having a website • How ChooseFI will check in every so often • Why and how Talis will start the business frugally • The importance of being very clear who your customer is and how you can help them • How FI helps us become entrepreneurs 

Alan’s key questions:

• Who’s the customer? • Who’s going to fund your business? • What proof do you have that your business works? • What makes your business different to other similar ones? • Don’t sell workshops to people without money • Sell to people who have the same desire to fix the problem as you • How can you give back to the institution/company funding you? • Use a report/survey as data to support your business • What social good does your business achieve? • How could you measure whether the idea works? • Build credibility by involving other people’s stories • Build a list of contacts of your possible customers • How will you brand your business? • How can you minimize the cost? • Are you clear on who your customer is and how you’re helping them? 

Links from the show:

• Episode 30: The Unspoken Lever of FI • Alan Donegan from the PopUp Business School 

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

055R | End of Year Review 2017 Dec 29, 2017

055R | A review of ChooseFI’s 2017 on the great progress of the community, several voicemails on FI successes and plans for 2018

This episode covers:

• How far the ChooseFI community has come • Eric’s great successes on his path to FI • How everyone in the community is helping each other out • The idea of building the community offline • Colby’s college hack to graduating debt free • How FI is about living a life of intention • Huge thank you to everyone __________________

Thank you for being a part of the ChooseFI community! :)

If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

055 | Live from Fincon 2017 Dallas Tx Dec 25, 2017

055 | Live from Fincon 2017 in Dallas Texas, it's ChooseFI!

Hey there everyone,

We recorded a special minisode that we wanted to share with you today.

For those of you that found us this year and have been following us on this journey over the last 12 months. Thank you :)

We recorded this at the #Amazing FINCON in Dallas that we attended at the end of October, the conference was an epic experience and they gave us the opportunity to record a short 20 minute episode using a VW Bug (in the featured image for this episode).

It was a cool experience all the way around and we thought you might get a kick out of hearing it.

Important

We are collecting your feedback for an end of the year episode. If you found the FI community through ChooseFI or you have been in the FI community but this year you have finally taken action. We would love to share your progress with the larger FI community.

If you want to share the progress that you have made over the last 12 months leave us a voicemail by the end of monday or early tuesday morning and we will play it on the show. To leave us a voicemail go to our home page at choosefi.com and click on the voicemail button https://www.choosefi.com/voicemail.

The FIRE is spreading my friends and we will see you next time as we continue to go down the road less traveled!

054R | And the Guest Host is... Dec 22, 2017

Fritz from The Retirement Manifesto joins Jonathan to cover the topic of risk tolerance and capacity, Jonathan taking action to make ChooseFI happen, voicemails about college hacking, and ESI Money taking over Rockstar Finance.

This episode covers:

Review of Monday’s episode with Fritz
The financial love letter
How ChooseFI is now happening in real time
The different risk tolerances in the FIRE community
Sam from the Facebook group: Jonathan’s risk by quitting his job
How the risk capacity varies from person to person
Why Jonathan has a high risk capacity
The more you start doing what you love, the more opportunities you get
Dylan and Kimberly ask Fritz a question about the drone and prepping for emergencies
Voicemail from Accidental FIRE about Fritz living in a cabin
Richmond’s asks for advice for college graduates
Jessie’s college hack on getting a graduate degree
Ben asking about the power of clep testing
Francis’ career hack as a sales rep
Monday’s big event: J Money handing over the Rockstar Finance reins to ESI Money
Felisa’s voicemail on why not to buy and hold company stock
The end of year checklist and how Christine was able to cut taxes
iTunes review and book giveaway

Links from the show

The Retirement Manifesto
Legacy Binders by J Money
Episode 43: Drawdown strategy
Am I a Prepper? No, just prepared by Fritz
CLEP Testing Facebook Thread
ESI Money
Career advice, Career results and Millionaire Interviews by ESI Money
Rockstar Finance
Episode 18: Capital Gains, Losses and the Roth Conversion Ladder

——————-

Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards

Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place)

As Jonathan would say, "The FIRE is spreading my friends!"

054 | Fully Funded Lifestyle Change Dec 18, 2017

054 | Jonathan has a BIG announcement. We also discuss the power dynamics behind FI and the financial transition of quitting a job. This episode covers: Jonathan announces quitting his job Why Jonathan is in a good situation to make this decision The position of power in being FI The financial steps of transitioning out of a job Why you should deal with FU money responsibly

——————- Thank you for being a part of the ChooseFI community! 🙂 If you want to support us, here are some easy ways:

1) Leave an iTunes review: http://www.choosefi.com/itunes

2) Use our page to sign up for travel credit cards Note: We may receive a commission if you are approved for cards on this page

3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place) As Jonathan would say, "The FIRE is spreading my friends!"

053R | End of Year Checklist Dec 15, 2017

053R | We discuss the importance of building trust and creating a tribe as well as how to use your talent stack for business. In today’s episode we cover: Another side hustle: narrating books Review of Monday’s episode with Bobby from Millennial Money Man How blogging is a way to give back to the community Why you just need true fans to be successful Having a good audience starts with adding value and building trust How the key to making money blogging is solving your audience’s problem Why having a tribe is essential for success How Brad’s limiting belief affected him Jonathan will write an article on Chipotle as an example to solving a problem How using your talent stack will help you online as well as offline How travel rewards are a pillar of FI Feedback from Mindy with the idea of an end of year checklist Facebook thread on ways to optimize tax payments and planning Voicemail from Chris about small life hacks for post FI people Voicemail from Lindsay about generating a second income stream J & A ask a question about distributing savings between real estate and retirement accounts and Coach Carson weighs in. iTunes review and book giveaway Links from the show: Monday’s episode: Do You Want to be Rich? A Thousand True fans with Kevin Kelly Tax Caster: Income tax calculator SmartAsset: Calculating taxes in each state How to avoid Underpayment Penalties SkillShare: Online classes Facebook post on End of Year To-do List Bigger Pockets Podcast Coach Carson’s Real Estate Course

053 | Millennial Money Man | Do you want to be rich? Dec 11, 2017

053 | This episode was an interview with Bobby from Millennial Money Man on attacking debt, becoming a full-time blogger, methods to teach finance in schools and how to scale side hustles.

In today’s episode we cover: Bobby’s story starting as a high school music director Him quitting his job to be a full-time blogger How he paid off his student loans His mentor teaching him the basics of managing money

The lightbulb moment which brought him to start Millennial Money Man Bobby’s rule on talking about money with friends and family

How he hasn’t changed even though he has more money The FI lifestyle Being a valuist Questioning the traditional narrative that everyone has to go to college

At which age should kids start learning about personal finance

How the world would change if everyone knew more about finance Bobby’s method to get kids interested in finance Bobby’s initial idea to do teaching seminars in schools

How he decided to quit his job Getting started with side hustles Advice for new bloggers: using your blog as a portfolio Scaling your blog/side-hustle

052R | Bring It | We Are Just Getting Started Dec 08, 2017

052R | We review Monday’s episode featuring Todd Tresidder discussing the different ways to reach FI through different asset classes, goals for 2018 and how to invest in yourself to create a happier life. What we cover: Recap of Monday’s episode with Todd: our most commented podcast How Todd makes us rethink FI and the way his mind works Why things are not as simple as the FI community make it out to be What other assets there are apart from index funds The 2 ways of getting into the entrepreneur game How FI is not a lottery ticket, the work to be put in. Why starting a business does not mean reaching FI How to choose which asset class is your path to FI How Brad’s bad experience in real estate makes him nervous about starting again 2018 goals: taking the next step with real estate The importance of not being dogmatic and broadening horizons Feedback from Trent on real estate, stocks and bonds How real estate can be a good plan for retirement Big Ern’s thoughts on Monday’s episode Active asset allocation: can it work for FI? Why investing in yourself will always make you win Christian’s voicemail on his 2018 goals The 80/20 analysis: why reaching level 2 understanding doesn’t have to be necessary How we’re now learning more about FI with our audience, not just teaching A voicemail from Jason about his big change: FIPE (Financial Independence Partial Retirement) iTunes review and book giveaway Links from the show: Monday’s episode: FIRE State of the Union Coach Carson’s episode: House Hacking Guide Mr Money Mustache Millennial Money Man Coach Carson’s new investing course: Real Estate Start School Sign up to our email list to send feedback Big Ern’s website: Early Retirement Now The Choose FI t-shirts Subscribe on iTunes ------------------- Thank you for being a part of the ChooseFI community! :) If you want to support us, here are some easy ways: 1) Leave an iTunes review: http://www.choosefi.com/itunes 2) Use our page to sign up for travel credit cards Note: We may receive a commission if you are approved for cards on this page 3) Most importantly, find your friends, coworkers, and family members who may be open to this message and tell them about the podcast! (Episode 21 is a great starting place) As Jonathan would say, "The FIRE is spreading my friends!"

052 | FIRE State of the Union | Todd Tresidder | Risk Management Dec 04, 2017

052 | Todd Tresidder from Financial Mentor comes on the show to share his perspective on the traditional way FI is taught ( FIRE State of the Union) and where it could be improved. We discuss the unique characteristics of all three asset classes and the advantages and disadvantages of each. Create a framework for your wealth plan and understand the importance of risk management.

In Today’s Podcast we cover: An in-depth conversation with Todd Tresidder from the Financial Mentor on the State of the FIRE Union The math behind financial independence and how traditional FI-thought is about lowering expenses and investing in low-cost passive index funds Todd believes there’s more to the situation than commonly believed Todd does not want to optimize relentlessly based on price

What is Todd’s definition of Fat FIRE? There are multiple paths to FI such as pursuing the business and real estate asset classes to get you to FI quicker in Todd’s opinion Where does Risk Management come into play? Risk management also needs to be discussed in the FI community A nuanced, dynamic, “Level 2” understanding Finding the right plan for different people and different situations

The point of FI is happiness What Todd values: Experiences not stuff, and buying conveniences How Todd disconnects when he is on vacation with his family Todd has focused on all three asset classes in his life and background info on his history Todd is always focused on risk vs. reward at different points in time Todd’s on the ground view of the housing bubble as an apartment owner Paper assets do not lead to a “predictable” return

As an investor you always want to look for the “obvious thing nobody else is looking at.” Todd’s discussion of inflation Todd doesn’t predict the future, but he manages risk Manage the downside and risk management.

Buffett quote on not losing money What situation would it make sense for someone to invest in index funds, real estate, business, etc.? Everyone needs their own plan for wealth building The business asset class – inventing equity out of ‘thin air’

The downside characteristics of each of the three asset classes

051R | Be Coachable Dec 01, 2017

051R | In this podcast we do a recap of episode 51 with Mrs Money Monster discussing the importance of getting past limiting beliefs as well as how to use the community to your benefit and take action in pursuing FI. In Today’s Podcast we cover: Recap of Monday’s episode with Mrs Money Monster. The importance of getting past those limiting beliefs Why we should learn to embrace the growth mindset, to always be willing to learn The value of having mentors Why FI is acknowledging that I am more than the sum of my stuff Having more control over your finances means making retirement optional Choose FI local groups are growing, making the Camp FI and FI Festival possible Voicemail from Lori about educational IRAs answered by Ed Mills from the Millionaire Educator Voicemail from Michelle about her journey to FI. All about taking action and keep working towards your goals. Matthew’s post from the Facebook Choose FI group: how one person changed his life by introducing him to FI Voicemail from Haidi about her preparing for retirement. By choosing to be half retired she will always continue learning. How to work out the wonderful problem of having so much choice when it comes to financial freedom. Voicemail from Lance after attending Alan’s Popup Business School and who wants to give back to the community. Teaser of Monday’s episode: Challenging our beliefs iTunes review and Book Giveaway Links from the show: The Choose FI T-shirts Our Facebook Group All our Choose FI groups About the FI Festival Ed Mills from The Millionaire Educator Radical Personal Finance Episode 106: A Comprehensive Guide to the Ultimate Education Account House Hacking with Coach Carson Bright Future Scholarship Episode 30 with Alan: Starting a business without going into debt Contribute to our show by sending us an email

051 | Mad Money Monster | A Roller Coaster Path to FI Nov 27, 2017

051 | In today's podcast we discuss the Roller Coaster Path to FI with Lisa from Mad Money Monster, including a new term she coined: F.I.O.R

In Today’s Podcast we cover: A conversation with Lisa from Mad Money Monster on the ‘Roller Coaster Path to FI’ Lisa grew up in a trailer, but in a great school district on the ‘right side of the tracks’ She only recently started telling people she grew up in a trailer as it impacted her self esteem She graduated from high school and didn’t plan to go to college as she didn’t think she was “smart enough” One meeting with an engineer at her first job let her to community college where she “secretly” applied The limiting beliefs and lack of a mentor behind her not even contemplating college

How her friend’s parents told her to not even start college as she “wasn’t going to finish” Lisa’s belief that she is coachable as a major life talent She graduated with a scientific degree from a four year university and had $25,000 of student loan debt Her employer paid for 100% of her master’s degree She then started saving significantly into her 401k, etc., but got into a bad relationship with a big spender She was still saving into her 401k, but her significant other’s bad habits rubbed off on her They spent $60,000 on a pool in their backyard and had friends over every weekend She had “cyclical credit card debt” that she paid off and then racked up again and then kept cycling What was holding her back from leaving the relationship? She didn’t want to move “backwards” in her life How she left the relationship and unchained herself financially

This was a defining character moment for her and let her believe she could do anything She then bought a property at the height of the real estate bubble in 2007 and moved her parents out of the trailer and into this home Though she could have lived “with her parents” at her house, she decided to move out into an apartment and stopped contributing to her retirement accounts How meeting Mr. Mad Money Monster was what put her on the path to Financial Independence They put an offer on a house they couldn’t comfortably afford and after the inspection came back negatively, they actually backed out and changed course They quickly found the FI community after that inflection point They paid off all their debt and maxed out retirement accounts Their savings rate is between 50% and 70% and they are well on their way to Financial Independence Financial Independence Optional Retirement

050R | Impact | The Stealth Wealth Community Nov 24, 2017

050R | The Impact of FI, A New FI Curriculum being piloted in a university, and holiday hacks just in time for Christmas. In today’s Friday Roundup we talk a bit about Thanksgiving and how to work on being thankful for all we have (yes it’s about your family). We also look back on our previous episode with Mr Groovy about moving out of an expensive living area to reach FI faster and the value of a local FI community (the FIRE really is spreading). We received some really inspiring messages which we share on today’s episode to show you the power FI has to transform an entire life. And of course, we finished off with some great Christmas hacks for the holidays! What we cover: 1. The Importance of Community There are ChooseFI communities all over the world now (62 and counting!) and it’s an enormous network. This means more and more people have communities with similar mindsets and goals just at their doorsteps. Imagine the opportunities when visiting another city and making contact with those other FI communities? The huge amount of knowledge shared? Our goal is to have these communities in every single city, so we can all help each other out to reach FI. If you feel there isn’t enough of a community in your own city, reach out to us on Facebook to become an admin of the Facebook page. There is a team in each area to help you out and we share the best practices to support the local groups 2. Circle Back to the Ongoing Buy vs Rent Debate Through the feedback voicemail from Charles we revisit the episode on buying vs renting and the fact that it doesn’t cover many of the aspects of home ownership. It was a good episode, but there was no counterpoint. Whether you want to buy or rent a house really depends on your situation and takes into account many different lifestyle factors. The most important is to look at it from an objective point of view: don’t just buy a house because that’s what you’ve been told all your life, buy it because it works for your situation. Do the math and analyze the situation. In honor of this huge and important debate, we pledge to do another proper episode where we have a proper sit down, do the math and have an in depth discussion. 3. The Impact of FI Thanks to everyone for sending those inspiring and in-depth voicemails in. Wendy, our first voicemailer, explains that FI is also about removing the parts that make you unhappy, removing the alligators and working towards what will improve your life and your future. Cassandra shares her goal to pay off $260,000 in debt and reach FI! This journey has changed her outlook and perspective on finance and entrepreneurship Phil rediscovered a zest for life by grabbing hold of Financial Independence he shares his 9 year plan to reach FI and what he plans on doing after FI Laurie shares her lightbulb moment, and how this podcast lifted the mental fog that kept her from appreciating the soundness of her husband's financial plan This truly goes to show the HUGE impact reaching Financial Independence can have over your life. We need to spread this message and we need to take action now. Start small. Start this week. And in 10 years you will have reached a state of independence you did not know was possible. This episode will inspire you to keep working towards FI and to build a community of like-minded individuals. One of our stated goals is to see a FI curriculum at the K-12 and collegiate level and Zack is piloting the first ever college level course at the University of Iowa Links Episode 50: Domestic GeoArbitrage Facebook Group: ChooseFI ChooseFI: Local Groups Episode 16: House Hacking with Coach Carson Episode 48: The Happy Philosopher Episode 9: Travel Hacks

050 | Domestic GeoArbitrage | Freedom is Groovy Nov 20, 2017

050 | In this podcast we discuss domestic geographic arbitrage with Mr. Groovy from Freedom is Groovy. In Today’s Podcast we cover: A conversation with Mr. Groovy from Freedom is Groovy to discuss domestic geographic arbitrage How Brad made a similar decision to Mr. Groovy to move from Long Island to a lower cost of living area How Mr. Groovy was a “financial moron” until he was in his 40s until Mrs. Groovy found Dave Ramsey What did their financial lives look like before finding Dave Ramsey and the concept of an emergency fund How creating a budget and putting it on paper was a game changer for them

What changes did they make after creating a budget? Their debt situation: They had about $30,000 in consumer debt How they created a “transition fund” to help them move off of Long Island to a lower cost of living area They managed to pay off debt and save $80,000 in cash for this transition fund by 2008 Their families were supportive of their move off of Long Island The peculiarities of living on Long Island and getting off the island How Mr. Groovy’s cost of living shaped up on Long Island and how the property tax burden is significant there

What other costs are smaller when moving out of a high cost of living area besides mortgage and property taxes? How the Groovy family bought a $70,000 condo in Long Beach in 1997 and sold it for $340,000 in 2006 They decided to move to North Carolina and happened upon Charlotte where they ultimately purchased They bought a condo for $88,000 in cash in Charlotte and banked nearly $250,000 from the sale of their home Their dollar cost averaging strategy to enter the stock market

How Mr. Money Mustache’s article The Shockingly Simple Math Behind Early Retirement change their outlook on life In 2014 they were basically at the 25x expenses definition of Financial Independence Even though the housing situation helped them significantly, they still would have hit FI by moving to a lower cost of living area just because of lowered expenses

Takeaways and advice from the geographic arbitrage decision How Mr. Groovy’s family wound up following him to Charlotte How Brad’s brother did both US and international geographic arbitrage Did Mr. Groovy and Brad have “freak out moments” after making the move?

049R | FI Festival Nov 17, 2017

049R | In the Friday Roundup we discuss our big takeaway from Episode 49: The Aggregation of Marginal Gains. Plus, upcoming plans for the ChooseFI website, a FI Festival and local meetups. In Today’s Podcast we cover: A review of Episode 49 with Alan Donegan and Barney from The Escape Artist The growth of the FI community throughout the US and now the world Jonathan just returned from his 2 week trip to South Africa with his family How did Jonathan fare with his use of electronics on his trip? Jonathan used travel rewards points to book his flights for free and he stayed with family so his entire trip was free Brad’s upcoming travel for summer 2018 to Europe where he used travel rewards points and then his trip to Santiago, Chile for 2019 The power of the Aggregation of Marginal Gains and how important it is for the FI journey How small examples can make a huge difference over time We were voted the #1 most popular Personal Finance Podcast at Rockstar Finance The benefits of fasting and why Jonathan does multi-day fasts The spreading of the FI message throughout the UK and how we’ve seen a significant number of people in our ChooseFI community The important of local groups and how we’re going to do everything we can to facilitate local ChooseFI groups throughout the US How we can all benefit from local meetup groups of like-minded people How the FIRE really is spreading and how we want to help grow the community A future FI Festival as a large-scale FI meetup event The Hall of FI idea that Jonathan wants to see as a featured component of a FI Festival People connect with stories and that’s what makes a successful blog and podcast We are looking for writers to tell their stories at the ChooseFI website as full contributors to the site Announcement: Joel from FI 180 is our first ChooseFI blogger Voicemail from Joel announcing that he left his job! Upcoming episodes on ChooseFI Itunes reviews and book giveaways Links from the show: PopUp Business School The Escape Artist The Aggregation of Marginal Gains Rockstar Finance: The Most Popular Financial Podcasts Winning Personal Finance Local ChooseFI Facebook groups Playing With FIRE documentary

049 | Alan Donegan & The Escape Artist | The Aggregation of Marginal Gains Nov 13, 2017

049| We discuss The UK Path to FI with Barney of The Escape Artist and Alan Donegan of PopUp Business School, plus much more in the way of life optimization hacks from both Alan and Barney. In Today’s Podcast we cover: An interview with Barney from The Escape Artist and Alan Donegan from PopUp Business School Voicemail from Sarah from the UK with questions about reaching FI outside the US Barney started the website after he put his notice in at work once he reached FI How Barney found the financial independence community Barney’s story on what his financial upbringing was like and how his parents had financial issues because of a large mortgage payment How the ‘keeping up with the Jones’s’ is alive and well in the UK Alan’s family doesn’t understand why they don’t spend more money and why they don’t work in the traditional sense Is there a FI community in the UK? There is a London Facebook group, but not a thriving community in the UK The different options of choosing a job you love versus one that pays a lot of money and you don’t necessary enjoy Creativity and how Barney “underestimated what was possible” for him when he had the time It’s a lot easier to be creative both when you have a “safety harness” but also if you “burn the boats” Debt is a form of handcuffs that keeps you in your current life The differences between the US and the UK: Starting with housing Property ownership is a significant part of the culture in the UK Barney’s thoughts on what he would have done differently with real estate had he started today Seeing a business opportunity in Barney’s idea to live in someone else’s home Health care in the UK and how it is more favorable for those pursuing FI Investing options in the UK and how it differs from the US Discussion of taxation on retirement funds and marginal tax brackets Differences in the cultural understanding of pursuing personal freedom through financial independence The program on FI on tv in the UK that Barney appeared on and the negative reaction and press Alan and Barney’s advice for those pursuing FI in the UK [skipto time=1:05:00]skip to[/skipto] Hot Seat Questions How incremental improvements can make a big difference in life, sports and financial independence Reading books as Barney’s favorite life hack Focus on self-improvement and doing something different and tackling fears Links from the show: The Escape Artist PopUp Business School Alan on Twitter Monevator blog in the UK Mr. Money Mustache JL Collins NH Halifax (for your ISA in the UK) The Share Centre (ISA in the UK) James Altucher An Interview With The Man on The Escape Artist Are Diamonds Really a Girl’s Best Friend on The Escape Artist The Aggregation of Marginal Gains on The Escape Artist This Coach Improved Every Tiny Thing by 1 Percent and Here’s What Happened Life Changing Books List on The Escape Artist FITV: The Top 10 TV Shows of Financial Independence Financial Independence and the Zombie Apocalypse Books Mentioned in the Show: Your Money or Your Life The Millionaire Next Door Invest in Yourself Walden

048R | The Roadmap to FI Nov 10, 2017

048R | In this podcast we recap Episode 48 with Jeff from The Happy Philosopher plus a life hack update from Brad and a question on how to present the FI concept to others. In Today’s Podcast we cover: Recap of Episode 48 with Jeff from The Happy Philosopher Jonathan and Brad’s recap of the Fincon conference How Brad and Jonathan brainstormed the future of ChooseFI at Fincon How the FI community is growing significantly at Fincon and how people were coming up to us saying they were listening How much value we can get from FI-centric events going forward, such as Camp FI How taking action is essential with the pursuit of happiness Happiness through subtraction and the process and mindset necessary Removing news and television from your life as well as sports How Jeff cultivated happiness in his life by “adding kittens” Finding the little moments that add value to your life How important gratitude is in life and how Jeff introduced that to us Decluttering and how it impacts Brad psychologically Jonathan’s experiment with his three closets of clothes and how little he actually wears Karen’s feedback on how to document your donations for clothing and such How essential it is keep organized and how you should do it along the way Brad’s life hack using unroll.me to organize all his subscription emails Email from Paul who is facing a challenge to introduce FI to his children Jonathan’s thoughts on how to present FI to someone else The information we have available in our ChooseFI Vault on how to present FI to others Email from Jennifer on a Bloomberg article that shows how even if you invested at the worst time in 2007 that your money would have doubled since then Itunes review and book giveaway Links from the show: The Happy Philosopher Fincon Conference JK Wedding Dance on Youtube How to Be The Happiest Person in the Room Camel Camel Camel Unroll.me The Shockingly Simple Math Behind Early Retirement How to Go From Middle Class to Kickass Bloomberg article: You Just Doubled Your Money If You Invested at the 2007 Market Peak

048 | The Happy Philosopher | The Happiest Man in the Room Nov 06, 2017

048 | Jeff from The Happy Philosopher joins us on the show to discuss the pursuit of happiness including how he reached a burn out point in his job as a radiologist and how his focus on happiness helped him find a path forward. In Today’s Podcast we cover: A discussion with Jeff from The Happy Philosopher An introduction to Jeff’s background story Jeff found himself burned out about four years into his full-time profession and he was stressed out and anxious and just not happy He reached a breaking point where he discussed with his wife his plan for five more years of work He had shortened his “prison sentence” but hadn’t made his “cell any more comfortable” (we discussed suicide in the episode and Jeff asked that we include a phone number for the National Suicide Prevention Lifeline) He couldn’t wait five years to be happy – he had to experiment now to find that happiness Was there something about his job that led him to this breaking point or was it that he hadn’t found what made him happy? Early Retirement Extreme was mind-blowing for him intellectually and led him to FI How medical professionals can feel “trapped” in their job because of sunk costs Did Jeff experience lifestyle inflation once he became a full-time physician? What did Jeff’s path out of burnout look like? How Jeff’s consumption of news led to much of his stress What else has Jeff cut out of his life? Happiness through subtraction Decluttering and getting rid of the negatives in your life Cutting down on commitments that aren’t necessary in our jobs and lives How Jeff pursued a job sharing part-time work during his peak earning years The Marginal Utility of Money and how your spending impacts your happiness The concept of trading your time for money How does Jeff approach how to spend money in his own life? The concept of utility versus value The importance of gratitude and how happiness is a skill Make a conscious decision to place a space between stimulus and response Hot Seat Questions Jeff suggests you experiment with cutting out alcohol entirely from your life for a set period of time as an experiment (Jeff also wanted us to mention: "Anyone who is a heavy drinker should probably consult with a doctor or someone familiar with alcoholism and alcohol withdrawal before quitting cold turkey.") Links from the show: The Happy Philosopher Early Retirement Extreme Mr. Money Mustache Happiness Through Subtraction at Mad Fientist Alligators and Kittens at The Happy Philosopher The Power of No at The Happy Philosopher How Understanding the Marginal Utility of Money Will Make Your Happier at The Happy Philosopher How to Be The Happiest Person in the Room at 1500 Days 7 Ways to Be Insufferable on Facebook at Wait But Why Books Mentioned in the Show: 13 Things Mentally Strong People Don’t Do The Life-Changing Magic of Tidying Up by Marie Kondo Your Money or Your Life

047R |The Rule of 72 Nov 03, 2017

047R | In today's podcast we recap Episode 47 with Bryce and Kristy from Millennial Revolution including talk of home ownership and world travel, but a reader case study and voicemail. In Today’s Podcast we cover: A recap of our main takeaways from Episode 47 with Kristy and Bryce from Millennial Revolution How Brad explained the concept of compound interest to his daughter Anna and it was a lightbulb moment How Brad’s daughter immediately took action and invested her money in Vanguard index funds Brad’s moment where he found the concept of compound interest as a 19 year old Calling for tips on how other parents have introduced financial skills to their kids How your house is not a great investment and for people in the FI community it isn’t “your biggest investment” Your home may be a terrible investment but it doesn’t mean it’s a terrible decision Home appreciation seems “magical” to people but it actually represents well below the 8% return benchmark we use as a guide Brad’s example of a $300,000 house and the expected future value How Bryce and Kristy have these amazing hacks to travel for little money Their entire lives cost $30,000 for a full year Time averaging in low and high cost of living areas A reader case study that was sent in to Bryce and Kristy on the rental property they have that’s underwater and how they should move forward Voicemail from ChooseFI community member Jack on finding FI and making amazing changes up to a 58% savings rate How everyone can pursue FI and it isn’t limited to certain incomes, professions, etc. Itunes review and book giveaways Links from the show: Millennial Revolution Why Your House is a Terrible Investment Friday Reader Case Study: My Mortgage is Underwater. Am I Screwed?

047 | The Cult of Home Ownership & Crushing Geoarbitrage | Millennial Revolution Oct 30, 2017

047 | Today we have Kristy and Bryce from Millennial Revolution on the podcast to discuss home ownership, international geographic arbitrage and much more... In Today’s Podcast we cover: A discussion with Kristy and Bryce from Millennial Revolution They initially were contemplating buying a house and were shocked by the process This is what led them to finding the Financial Independence community Home ownership seemed like a “cult” to them What did their financial life look like before finding financial independence and how did they save so much money previously? Who might be naturally included to FI and how everyone can be open to it FI opens up creativity that you otherwise wouldn’t have the time for Voicemail from David from Canada How difficult it is societally to not purchase a house You need to do the math behind home ownership and don’t succumb to the ‘fear of missing out’ All the other costs that are involved in home ownership that eat into your paper gains A house is not an investment, it’s a place to live The power of compounding and the Rule of 72 How would someone do the math to compare renting versus buying? The 1% rule Introducing leverage into the scenario of buying a home What do they invest in? Low-cost index funds How often they rebalance their portfolio and how they came up with their 60/40 split It is less expensive for them to travel the world than live in Toronto Their annual spending their first year of travel was $40,000 but they were able to cut that to roughly $30,000 in year 2 How they believe everyone could live the same lifestyle if they were willing to break their mental block with owning a home How would they recommend people get started with international travel and geo arbitrage? Budget airlines and bus companies help them travel throughout Europe for a fraction of the expected costs What do they do with lodging when first visiting a city? The ‘secret’ location they’ve found in London to stay for a fraction of the cost How nobody else in the world worries about health costs like Americans do How much could you reasonably spend for a year of living in Thailand The little enclaves of expats that exist throughout the world where they’ve found to live for less Their summarized advice for David from Canada Hot Seat Questions They actually have a financial advisor, but they don’t outsource their knowledge to someone else Links from the show: Millennial Revolution JL Collins NH Mr. Money Mustache Would We Be Richer if We Had Bought a House at Millennial Revolution Afford Anything Airbnb Why Your House is a Terrible Investment at JL Collins NH

046R | Selectively Hardcore Oct 27, 2017

046R | In today's podcast we discuss our takeaways from Episode 46 with Ms. ONL from Our Next Life plus community feedback and voicemails and a discussion of travel rewards. In Today’s Podcast we cover: A recap of Episode 46 with Tanja from Our Next Life Brad and Jonathan are on their way to Fincon – the annual financial bloggers conference Jonathan’s upcoming trip to South Africa with his family using travel rewards points Tanja’s reveal of her identity after being anonymous for the entirety of the blog’s life What do you want out of life and how are you going to approach that question in the leadup to FI? The ‘internet retirement police’ and people making money in early retirement ‘We are some of the luckiest people in human history’ as Tanja described The safety Mr. and Mrs. ONL have built into their FI plan The different stories and plans our various guests have and how there is no ‘one size fits all’ plan for Financial Independence How they are selectively hardcore about certain things like their heating bill Corrections and feedback from episodes 43 and 43R Updates on Mega Backdoor Roth options including feedback from William Brad’s feedback on Keith from The Wealthy Accountant’s thoughts on the Mega Backdoor Roth and the Roth IRA conversion ladder going away Discussion of Roth versus traditional IRA and marginal tax brackets plus info on the Earned Income Tax Credit Email from Giselle from our ChooseFI community and her question about spending now versus the future and frugality versus enjoyment Brad and Jonathan’s response to Giselle about how we view the path to FI as a positive and gives us more control over our lives Giselle’s question about using travel rewards points for a 2 week trip to Europe and when to get started and how to avoid issues with mileage expiration Voicemail from community member Joel listing all the incredible changes he has made since finding the ChooseFI podcast Itunes review and book giveaway Links from the show: Our Next Life Get Rich Slowly The Wealthy Accountant The Frugal Professor Frugalwoods

046 | Our Next Life | The Reveal | Are you Ready for Early Retirement? Oct 23, 2017

046 | In today's podcast we have a wide-ranging conversation with Ms. ONL from Our Next Life on her decision to stop being anonymous on the blog to what their journey looked like to FI plus what they expect life to be like after FI and much more. In Today’s Podcast we cover: A financial independence discussion with Ms. ONL from Our Next Life The big reveal: Their names are Tanja and Mark What does it feel like for them to come out behind the veil of anonymity? Why have they been so strict about remaining anonymous?

How do they view the concept of early retirement? How they can pursue the aspects of their jobs that they still enjoy How is early retirement different than working for yourself?

One of the best parts of early retirement is that you can try so many different things Their friends and family are extremely supportive of their early retirement plans Finding their ‘why’ behind early retirement

A discussion of how silly the notion of being “bored” in early retirement truly is The Endless Winter: Following the snow to ski for an entire winter How they try to save money on their heating costs

How difficult the transition could be from working to not working and to mentally prepare yourself in advance for life after retirement How to mentally prepare yourself for future situations with “disaster drills”

The value of finding progress in difficult things in life The questions you need to consider when pondering early retirement:

How will you support yourself or your family without a job? They do not plan to tap their tax deferred items before 59.5 How they projected the amount they need to reach Financial Independence
What is your backup plan for dealing with financial emergencies? The value of insurance and especially umbrella insurance
How will you get healthcare? How your income impacts your health care subsidies and the consideration of FI strategies
How will you keep your body and mind healthy? What will a day look like for them in retirement? The importance of community in maintaining a healthy balanced life

045R | The Journal Oct 20, 2017

045R | In this podcast we discuss our takeaways from Episode 45 with JD Roth of Get Rich Slowly, including the big news that he just purchased GRS back, as well as our frugal wins of the week and the elegance of simplicity. In Today’s Podcast we cover: A review of Episode 45 with JD Roth from Get Rich Slowly and Money Boss Jonathan’s frugal win of the week on purchasing a new stove/oven What is the utility of Jonathan’s new oven over a standard oven? Jonathan’s insourcing to install the oven himself Brad’s frugal win of the week: Laura stained the deck on the back of the house JD’s big news of buying back Get Rich Slowly How JD’s story helped change the world for so many people and how much impact he has had on potentially millions of people JD’s impact on Brad’s life with travel rewards What a unique point in time to be able to start a blog for so little money and the positive impacts you can experience The power of the blog is in the story of the blogger and that individual’s personality JD’s concept of the internal locus of control and how you can direct your life Don’t complain about the forces that are impacting your life – take control JD’s concept of having to do the work and that there are no shortcuts How strategy and cost-benefit analysis factors into your actions and goals What’s not worth putting the work in for? This is as important strategy-wise as picking what you do want to spend your time on Investment strategies of VTSAX versus other options, and Brad’s thoughts on the cost-benefit analysis of spending time trying to beat the market Part of the strategy is determining where to put your time and effort in life and investing It’s all about taking action in investing and life and how it separates successful vs. unsuccessful people The elegance of simplicity in getting people to take action A future roundtable with people of different opinions on investing Voicemail from Melissa on how she “channeled her inner Laura” in saving time and money on cooking Laura’s tips on how to cook more efficiently Jonathan’s experiment with his first vegetarian meal Itunes reviews and book giveaway Links from the show: Get Rich Slowly Money Boss DIYtoFI.blog Early Retirement Now FI180 Sign up for CampFI tickets Budget Bytes recipe: Slow Cooker Coconut Curry Lentils Books Mentioned in the Show: The One Thing Tools of Titans

045 | JD Roth | Get Rich Slowly | Breaking News | Full Circle Oct 16, 2017

045 | Today we discuss JD Roth's backstory behind his financial journey, Get Rich Slowly and Money Boss, plus JD's philosophy AND a very special announcement...

In Today’s Podcast we cover: A discussion with JD Roth from Money Boss and Get Rich Slowly How JD impacted Brad’s life and put him on the trajectory to becoming a travel rewards expert JD’s backstory and how he found the personal finance community JD started Get Rich Slowly to document his process to clawing out of $35,000 worth of consumer debt and becoming financially literate and successful

JD started his ‘credit card habit’ in college Any actionable tips the audience could take away from JD earning a scholarship to college? JD focuses on being self-directed with an ‘internal locus of control’ JD started a blog before the word blog even existed and started his first webpage in 1994 and his first web journal in 1997

JD’s plan to get out of debt in 3 years and the article he wrote called ‘Get Rich Slowly’ April 2006 was when Get Rich Slowly started JD was looking for a ‘magic bullet’ but quickly realized he needed to put in the effort and spend less money Dave Ramsey’s Debt Snowball and how it helped JD succeed psychologically

JD as an ‘accidental personal finance expert’ and how that journey progressed The audience and community around Get Rich Slowly helped make it a great site and inclusive JD’s frustration with the thought that there’s a “right” way to go about things in the personal finance world

Action is the number one thing that separates successful people according to JD

The methodology behind financial independence according to JD: The Six Stages of Financial Freedom Your level of control increases as you progress down the path towards financial independence When JD personally progressed through the six stages

How does JD spend his days and what is his philosophy? How JD sold his comic book collection and made $28,000 which funded their RV trip JD’s insight on the future of the financial independence movement Hot Seat Questions JD’s big announcement about

044R | The One Way Ticket Oct 13, 2017

044R | Today we discuss our takeaways from Episode 44 with Brandon Pearce from Pearce on Earth plus feedback from the community and our thoughts on international travel with our families. In Today’s Podcast we cover: A discussion of Episode 44 with Brandon Pearce from Pearce on Earth Jonathan’s frugal win of the week by having a potluck dinner and a movie in the backyard for his friends and neighbors Jonathan is on a 3-day fast and his explanation The importance of mentally anchoring when undertaking something difficult Jonathan wanted to prove to himself that he could do it and to help with his impulse control Brandon realized early that you don’t have security as a 9-5 employee The power in your life shifts when you start saving money and that margin increases with each paycheck The concept of ‘burn the boats’ in motivating you to success Jonathan’s thoughts on safety vs. burn the boats How your business can take over your life if you let it, so you need a work-life balance Where are the pain points in your life and how can you make them better? Brandon’s lightbulb moment when you have that first sale They knew there was more to life that they could experience outside their ‘bubble of life’ by travelling the world Jonathan’s story of visiting an international food store in Richmond Looking for areas of fear and discomfort in life and leaning into them Finding community both abroad and here in the United States Brad’s thoughts on taking an international trip with his own family and what is potentially holding them back Brad tracking his time and will report back with his progress next week The value of telling other people about goals you intend to hit and how it keeps you motivated Also, the value of telling a ‘story about yourself’ and how that will keep you motivated to do what fits that story Voicemail from Vicky about getting out of their 9-5 lives and pursuing slow travel with their two kids plus how they used 120,000 miles to get 4 one-way tickets to Europe for only $20 The “one way journey” of life Feedback from Andrew on the episodes Different types of learning opportunities for your children Voicemail from Kevin how he explained FI to the HR department at his company and how motivated it made him to keep going down this path Itunes review of the week and book giveaway Links from the show: Pearce on Earth Music Teacher’s Helper You Need a Budget Money Metagame Impact Theory Nomad Together Podcast Books Mentioned in the Show: Tools of Titans

044 | Brandon Pearce | Into the Wind Oct 09, 2017

044 | Today we discuss how Brandon Pearce went from a call center job to being a full time entrepreneur, traveling the world with his wife and children and how he started the Family Adventure Summit. In Today’s Podcast we cover: Episode 44 with Brandon Pearce, who was recommended to us by Andrew from the ChooseFI community

Discussion of geo arbitrage, starting your own business and designing your future all wrapped up in one person Brandon realizing that you have no control over your future as a regular employee and it started him thinking about getting moving with his own business His software for organizing piano lessons was what led to his business How he got his first sale and realized this could be a successful business How Brandon considered making this a full-time venture and that inflection point where he took the leap

Did Brandon contemplate not going full time with his software or was this a slam dunk decision? The value of hiring from inside your own community to find someone who is passionate and knowledgeable

How Brandon wouldn’t be happier or more fulfilled with more ‘stuff’ Was the plan for this to be a ‘lifestyle business’ originally? They replaced a focus on stuff with a focus on growth, travel and service Their six week “test trip” to Panama as a family Looking at life through your children’s eyes

How difficult it was to replicate this experience in the United States Travel as one of the biggest catalysts for growth How liberating it was to not have any of their stuff on the trip to Panama Their first long-term trip was to Costa Rica and they were there for 1.5 years where their daughter was born

How do you find a community when travelling abroad?

Their current location in San Miguel de Allende in Mexico and how close the community is there

Schooling types: Homeschooling, world schooling and un-schooling and an explanation They follow an interest-led learning approach with their children to inspire the love of learning What do you tell someone who is afraid to take the leap to family travel?

Slow travel has the ability to be transformative and immersive Questions about safety and health care in foreign countries A discussion of health care in the countries Brandon has lived in and how inexpensive it is

Brandon’s time tracking experiment The 1st annual Family Adventure Summit Documentary: Into the Wind about families travelling the world Hot Seat Questions

043R | Mega Backdoor Roth | Should I Ever Consider Using the Roth? Oct 06, 2017

043R | In this podcast we discuss our takeaways from Episode 43 with Fritz from the Retirement Manifesto plus an in-depth discussion of the Roth IRA conversion and Mega Backdoor Roth, and taxable income scenarios for retirement contributions. In Today’s Podcast we cover: Our big takeaways from Episode 43 with Fritz from Retirement Manifesto Brad as a ‘Mystery Reader’ for his daughter’s class plus their trip to Natural Bridge State Park and a FI lesson for his daughters How to tackle drawdown strategies and how that opened our eyes The concept of balance that Fritz brought up in Episode 43 How we each have a different path to Financial Independence and we have to find what we each value and how much safety we require How important the math is, but also how the personal side is an important part of the equation Jonathan’s decision to pay off his student loans early and how this may not have been optimal mathematically, but was the “right” decision for him Feedback from the audience on the episode, but specific points from Danny Questions surrounding inflation on your safe withdrawal rate and early retirement Feedback from the audience about delaying social security The distinction between the Roth IRA conversion and the Mega Backdoor Roth IRA The tax issues surrounding the Roth IRA conversion Practical Application of the Mega Backdoor Roth Vishal and Brad share the nuances of trying to navigate the Mega Backdoor Roth: They need to allow for after-tax contributions and in-service distributions/withdrawals Explanation of the Mega Backdoor Roth Email from Zac about the value of using pre-tax or post-tax retirement contributions when you’re already in a low tax bracket Where is the line where we’d consider putting into a pre-tax or post-tax retirement account? A scenario of someone with a $25,000 income and where they’d fall in the tax brackets and how to lower that A scenario of an individual with a $60,000 gross income and what they should consider with their retirement contributions How would Brad and Jonathan choose if they were in this situation? Itunes reviews and book giveaways The Vault is live Click Here for Access Links from the show: Retirement Manifesto FI by 40 Millionaire Educator Mega Backdoor Roth article by the Mad Fientist Post from Vishal from Everything about Education about Mega Backdoor Roth The Wealthy Accountant Books Mentioned in the Show: Hiking to Waterfalls in Virginia

043 | Drawdown Strategy | The Retirement Manifesto Oct 01, 2017

043 | In this podcast we have a far-ranging conversation with Fritz from the Retirement Manifesto about retirement drawdown strategies, his 'buckets' system, and his upcoming retirement.

In Today’s Podcast we cover: Retirement drawdown strategies with Fritz from Retirement Manifesto How Fritz focuses on what life is about after retirement such as how you’re going to spend your time Fritz is 9 months away from retirement himself

A background on his story in corporate America and his path to FI and early retirement The difference in perspectives between retirement dates and savings rates between the FI community and the population at large What would Fritz’s path have looked like if he found the FI community decades earlier

Fritz stayed with the same company for 32 years and has a traditional pension Where did his interest in retirement spreadsheets and the blog come from? How writing a blog helps develop and formalize your own thoughts and plans What to consider when building your own retirement drawdown strategy

The Three Bucket Strategy for retirement drawdowns and how Fritz separates his own holdings by these buckets What a simplification strategy looks like and how to avoid taxation with this simplification How you can create a net neutral taxable position by specifically identifying losses and gains to sell when trying to simplify How Fritz plans to use Roth conversions while he is in a zero-income position for a 2 year period and pay $0 in tax on the conversions

Explanation of the Mega Backdoor Roth and how Fritz is utilizing it The equity to bond split that Fritz uses plus how to consider asset allocation and risk Why does Fritz use a 60/40 Stock to Bon split when he has a pension and social security coming?

Why Fritz believes you shouldn’t take more risk than you have to Fritz’s thoughts on delaying a pension and social security to get a guaranteed return A hypothetical early retiree example and how Fritz would think through this example and advise them

The uncertainty of health care in early retirement How they can track their annual spending by putting money into “Bucket 1” What annual tasks do they do with a ‘year in review’? The variable approach to withdrawal rates and flexibility

The value of protecting your Roth accounts to let them grow as long as possible Life insurance policy discussion The flexibility to take fun seasonal jobs if you wanted an adventure Health Insurance and long-term care insurance discussion

042R | Perfect Utilization Sep 29, 2017

042R | In today's Friday Roundup we discuss Episode 42 with JW from The Green Swan, plus various discussions about community and feedback from the audience. In Today’s Podcast we cover: A discussion of Episode 42 with JW from The Green Swan Scott Rieckens and his crew from the documentary Playing With FIRE were in Richmond this week filming our podcast, lives and a Richmond FI get together The importance of community in the Financial Independence world and the volunteers we’ve received to be ‘community leaders’ for Choose FI meetups How we’re going to setup Slack for the Choose FI community and we need someone to help organize it The future Choose FI Vault that will be a digital locker for useful files for the community The decision JW made to buy a business with his brothers and how unconventional that is How you need to consider all possibilities when going into business with anyone Brad and Jonathan didn’t have the discussion of all future possibilities and didn’t put together an operating agreement, but are now going to do so thanks to JW’s advice Feedback from Lucas on the Green Swan episode about not relating to a high dollar value acquisition A question from Lucas on how this differs from buying an individual stock and if they had an unfair advantage by being CPAs and MBAs We all have a unique path to FI You need to see how different investment and business opportunities fit into your life and with your own risk profile Calculation based on getting a return of 8% versus 16% over a 15-year period How hustle can be as or more important than any skills or certifications you have How putting skills from various areas together will help you succeed dramatically in life Different ways to improve a business from Jonathan if you’re a lifelong learner Announcement of the next Camp FI in Williamsburg, Virginia in April 2018 “Collect skills not stuff” motto from Jonathan and how he wants to explore a “Maker space” for a community of learners The sharing possibilities of having pooled resources with neighbors or communities The new Mr. Money Mustache World Headquarters for people with the FI and entrepreneurial mindset Buy Nothing Project and how it relates to “the alley will provide” Travel Rewards update on changes to card opening options Itunes reviews of the week Links from the show: The Green Swan Playing With FIRE Slack ChooseFI Vault Camp FI mid-Atlantic in Williamsburg, VA from April 13-April 16 2018 Mr. Money Mustache Buy Nothing Project

042 | The Green Swan | Why Start a Business, When You Can Buy One? Sep 25, 2017

042 | In Episode 42 we have a wide ranging discussion with JW from The Green Swan about his FI path, going into business with family, buying an existing business and much more.

In Today’s Podcast we cover: A discussion with JW from The Green Swan about financial independence and busing buying and ownership How JW got involved in the FIRE community A discussion of life insurance and how much someone in the FI community really needs to think about

They were already on a path to financial independence even before finding the FI community online How JW approached college with the mindset of graduating early JW’s dad passed many of the tips and tricks of the FI community to him in his teens JW’s relationship with his older brother made a big difference in his FI journey and they long talked about buying a business

The concepts discussed in the book Rich Dad, Poor Dad and how it could help you get multiple streams of income JW and his brothers were saving for many years in anticipation of buying a business How they researched the options of buying a business How they could step in and grow the business they intended to purchase What did they do to fix the culture in the business and reassure their employees about the future of the business How did they know they could add value to this or any other company? How they structured their legal entity to optimize most efficiently

They are investigating purchasing a similar business to expand their business What does the path look like for each of the four brothers and how have they navigated the sibling dynamic? They entered the business with ‘eyes wide open’ to the potential to damage their family relationships

They built an operating agreement with all potential future possibilities so they could navigate future issues. It was important that they did this from the outset The unexpected joys and crazy things that happen when you own a small business with many employees and JW’s examples How are they funding a future potential acquisition? How do these businesses impact JW’s financial independence number?

He is calculating his FI number without even considering the income or equity in the businesses Hot Seat Questions Favorite life hack is listening to podcasts and audio books at 2x speed He wishes he would have done ‘house hacking’ like his father did when he was younger

041R | Extreme Ownership Sep 22, 2017

In this Friday Roundup we discuss Episode 41 with Paige and Sam on extreme frugality, radical insourcing and the high cost of living path to FI plus a voicemail from Big Ern and members of our community. In Today’s Podcast we cover: The discussion of Episode 41 with Paige and Sam about reaching early retirement through extreme frugality and radical insourcing in a high cost of living city like Los Angeles Jonathan’s story about visiting his childhood library and trying to find old computer games Book recommendations from the ChooseFI Facebook group The list of obstacles that could have stopped Paige from reaching financial independence, but she overcame anyway It’s easy to make excuses, but your journey almost invariably will be easier than Paige’s The aspects of high cost of living that would be universal to other people: Defraying the costs of housing by sharing an apartment “The alley will provide” as a perfect quote for ChooseFI and a way to think about not buying new items Making a fun game out of buying “new” items (new to you) at a garage sale The important of collecting skills instead of stuff plus a list of random skills you can pick up Don’t be complacent with the knowledge and skills you have. Always look to learn. There are so many free ways to get entertainment in a big city A big takeaway was that Sam’s parents cut the friction and helped him get started investing The hardest part is to take action, so helping other family members can help their lives dramatically. Jonathan thinks about this with his siblings Don’t let the perceived complexity of task overwhelm you and cause you to not take action. Just break it down into steps and take action. Andrew shared how he and his wife break down the ChooseFI podcast every Monday where they discuss with their kids in a fun way How Brad setup a Vanguard investment account for his kids in 2017 Are there tax implications for investing for your children? Discussion of Paige and Sam’s housing situation Paige’s “mistake” that was right for her You have many levers to potentially pull and not everyone needs to make the same choices, but you need to not make excuses Cutting expenses is the low hanging fruit of the path to FI. Changing your income is not as immediate Buying used takes the mental anguish out of purchasing and perfection Jonathan’s life hack for purchasing at Amazon: Camel Camel Camel Case study for how to use Camel Camel Camel Don’s call that he officially reached financial independence! Call from our in-house expert Big Ern about how to mitigate sequence of returns risk Winner of the side-hustle competition: Tallis who is providing dance classes to those with Parkinson’s Disease Call from Dave about the business he created Itunes review book winner Links from the show: Classic Reload video games Freecycle Frugalwoods Camel Camel Camel Early Retirement Now Case Study in Part 11 of the Safe Withdrawal Series The Stock Series at JL Collins NH PopUp Business School Books Mentioned in the Show: The Lies of Locke Lamora Tools of Titans by Tim Ferriss

041 | The High Cost of Living Path to FI Sep 18, 2017

041 | In today's podcast we discuss the High Cost of Living Path to FI with ChooseFI community members Paige and Sam who live in Los Angeles and have been pursuing FI in a HCOL with sub-$50,000 per year jobs. I

n Today’s Podcast we cover: Episode 41: A conversation with Paige and Sam about pursuing Financial Independence in a high cost of living area on a lower income Paige pushed back on our limiting belief that you “can’t” achieve financial independence on a low income in a high cost of living area Sam introduced Paige to MMM but Paige ran with it from there Paige’s back story Paige had a negative net worth in her mid-40s Since Paige has earned and lived in the $30,000 range she is used to that and now that she’s making more she can save that difference Paige intends to hit early retirement in 2025 and has a 50% savings rate She uses her Roth IRA as an “emergency fund” since she can withdraw the contributions at any time tax and penalty free Sam’s story behind retiring “early and often”

He did not have student loans and also his parents modeled investing for him well before he was earning income himself Sam’s parents always put gifts and other money into his investing account instead of giving it to him to spend Sam is technically at his FI number, but he does still continue to work Sam’s history of his apartment renting in Los Angeles and sharing apartments with roommates to lower the costs (over a 20+ year period) Sam has never made more than $50,000 in a year Having to be slightly more intense to reach FI in a low cost of living area.

The best way being to live with roommates and not having a car payment They don’t buy new items – the “alley provides” and they can find free stuff on the street or at Goodwill, etc. They are very deliberate and intentional about saving money on food and groceries Limiting beliefs on why people like Paige and Sam couldn’t retire early and pursue financial independence and why they rejected them The big three items they can control: Housing, Transportation and Food

There are so many free activities in a big city, so it is easy to keep a nearly $0 entertainment budget in a city They are not minimalists at all, but they just don’t buy new things. Sam is an extreme DIY-er and picks How did Sam become a DIY-er?

You don’t have to agonize over decisions when you aren’t trying to maximize or perfect each buying decision How they approached their home buying decision differently with the mindset of people who can fix essentially anything Buy a house that is just bad enough that the flippers don’t want it – per Paige What is the long-term play for their new house? Do they intend to buy other homes to fix and sell? Extreme ownership of your decisions and knowing what you want Paige’s plan for early retirement and how to make it to 65 and social security where she’ll get a ‘big raise’ Hot Seat questions

040R | The Power of the Reset Button Sep 15, 2017

040R | In today's Friday Roundup we discuss our takeaways from Episode 40 with Noah and Becky from Money Metagame, plus voicemails from the ChooseFI community and our in-house expert Keith from the Wealthy Accountant. In Today’s Podcast we cover: Discussion of Episode 40 with Noah and Becky from Money Metagame about the Gap Year Jonathan took action and followed Geoff’s advice to start culling his closet and decluttering his life Jonathan is struggling with how to categorize and track his donations For tax purposes you definitely do want to track your noncash donations It’s always easier to track things along the way as opposed to doing it all at the end of the year How is Jonathan mentally approaching the process of decluttering his life? How Brad would approach cleaning out closets by making a game out of it Noah and Becky found FI at a young age and incredibly have not made any major financial mistakes in their lives You have more and more power in your life as you go along your FI path and reach your Milestones of FI. It isn’t an all or nothing thing. Becky realized she was getting burned out and was able to make a decision to leave her job based on a position of strength Becky and Noah have no fear moving forward and that is incredibly inspiring You don’t have to maximize every dollar but can focus on what brings you happiness How a ChooseFI app would add value to the community and an ask whether this would provide people value Announcement of the two finalists for the Startup Business Competition with Alan Donegan: Rachel and Tallis Discussion of the phrase ‘Side Hustle’ and how Brad hasn’t liked that phrase Voicemail from Alex with a question for Keith from the Wealth Accountant on retirement plans available to self-employed individuals Response voicemail from Keith from the Wealthy Accountant Life hack from Noah from Money Metagame on how to save on movie tickets Voicemail from Nicholas about the positive changes he’s made in his life in the last 5+ weeks since he found ChooseFI Discussion about the value you receive from cards on an ongoing basis Itunes review for the winner of the book drawing Links from the show: Money Metagame Sell My Comic Books website ESI Money Frugal Professor PopUp Business School The Wealthy Accountant Advance Screenings for movie tickets The Points Guy: How Closing a Credit Card Impacts Your FICO Score

040 | Take a Gap Year | Money Metagame Sep 11, 2017

040 | Today we have Noah and Becky from Money Metagame on the podcast to discuss their story, their upcoming 'Gap Year' of travel plus an incredible college hack they used to get full-tuition scholarships. In Today’s Podcast we cover: A discussion with Noah and Becky from Money Metagame Noah and Becky’s history behind their path to FI Travel Rewards was what initially got them into the world of Financial Independence How Noah introduced this idea to Becky originally Becky was originally hesitant but after seeing some stress in their lives became more open to it How the personal finance and financial independence sub-Reddits became Noah’s go-to sources for information The story behind the name Money Metagame How Noah and Becky both got full-tuition scholarships to Purdue University through the Evans Scholars program How they found out about this program to get these college scholarships The background on how others can benefit from this scholarship opportunity What was the thought process behind them buying a house in Seattle upon moving there? The mortgage on their house was actually less than what they were paying in rent What was the process behind them getting rid of PMI (Private Mortgage Insurance) on their home? After they found the concept of FI they started maxing out their 401ks, HSAs and Roth-IRAs, plus regular brokerage accounts Their savings rate went from 6% in 2014 to 58% in 2015 after finding FI. It has since gone up from there

Becky wasn’t happy in her job and that gave them the push to quit their jobs and take a ‘Gap Year’ to travel around the United States They are past “Half FI” on the list of FI Milestones What do they plan to do with their home in Seattle? What did the conversation look like when they told their family and friends? Could Becky dial back certain aspects of the nursing profession and only focus on the parts of the job she loves? Noah’s decision to leave his particular company and job What do they have to consider when embarking on a trip like this?

There is room for FI optimization since they’ll have minimal income in 2018 How does the interplay work between realizing “income” through capital gains and getting subsidized health care What does their trip look like in general and what are their plans for the actual travel? They will be focusing on lower level redemption hotels through Hyatt, Starwood and IHG How will they get their mail while on the road? What scares them about this trip and experience? This was all possible because they found FI Information on their honeymoon to Fiji as their best travel rewards win Does it make sense to use miles for business class or first class? Hot Seat Question

039R | Cruise Control Sep 08, 2017

039R | In today's podcast we discuss Episode 39 with Gwen from Fiery Millennials, plus a 'Cruise Control Path to FI' case study example and voicemails from our community members. In Today’s Podcast we cover: The Friday Roundup after Episode 39 with Gwen from Fiery Millennials A whole new FI world for Brad and Laura after their youngest daughter went to kindergarten They have the opportunity to live more of a FI lifestyle and have to now figure out what that looks like Second Generation FI and examples of Brad’s kids exhibiting their behaviors ChooseFI is an opportunity for Brad and Jonathan to share these stories with their kids and also document their FI paths Gwen’s lightbulb moment she had during college and how that changed her trajectory How intelligent Gwen was with her college decision and pursuing a full scholarship Brad should have focused his own college search on places where he could have gotten a full merit scholarship The concept of the ‘cruise control path to FI’ Second Generation FI Case study example of how savings would work maxing out their 401k from 22 to 32 The value of compounding over decades The importance of starting to save early and the concept of time as a Pillar of FI The ability to put money into your kid’s Roth IRAs even if they are under 18. We need to do more research on this to document what’s allowed Example of putting $5,500 into a Roth IRA for a five year stretch from 13 to 18 and what it would be worth at age 60 Jonathan’s example of contributing to a 401k from 32 to 60 You have to get started and take action today, even if you’ve made the “wrong” decisions in the past Gwen’s desire to build up the FI community is incredibly impressive Announcement of the last three finalists for the PopUp Business School competition with Alan Donegan Voicemails from the three finalists Voicemail from Justin about the career path of an air traffic controller as a path to FI making significant money without a college degree Itunes book giveaways Links from the show: Fiery Millennials Go Curry Cracker The Wealthy Accountant PopUp Business School USAJobs.gov

039 | Millennial path to FI | Fiery Millennial Sep 04, 2017

039 | In today's podcast we have a conversation with Gwen from Fiery Millennials about her millennial path to FI plus some hacks that she used to save on college and increase her savings rate. In Today’s Podcast we cover: Our guest on Episode 39 is Gwen from Fiery Millennials Was Gwen from the generation that grew up with electronics from day 1? A background on Gwen’s story saving money when she was younger.

She saved 50% of her income Gwen pursued dual enrollment classes and entered college with 23 college credits Gwen did the research with the college first to determine what credits would count Brad’s example of programs that exist in Virginia and likely other states where you can attend a community college and transfer to a state university Gwen joined the Air Force in the Air National Guard to pay for college, but actually got a merit scholarship from her college Gwen still has 8 semesters of free college remaining for the future due to these dual scholarships

How did Gwen find the concept of Financial Independence? Finding FI helped Gwen keep on the path and be conscious of her consumerism and save more Gwen’s search for an internship via job hiring boards or job fairs What’s the difference between searching on the job board and the job fairs? How to look professional and make a positive impression at a job fair

Your FI path is dramatically easier when you do things right from the beginning Gwen was maxing out her retirement contributions How you can be on cruise control if you do the right things the first 10-15 years of your career Gwen had a roommate when she got out of college so she was only paying $450 per month in rent Gwen pursued rental real estate after attending the Chautauqua She landed on the idea of ‘house hacking’ for her rental property She bought a triplex and the rental from the 2 other units more than pays for her rent, so she is paying $0 out of pocket for living expenses

Gwen feels she may have rushed into buying a property since she bought the second property she looked at Gwen is maxing out her 401k, HSA and Roth IRA and then additional savings go towards future down payments Gwen’s savings rate should be around 80%, but extraordinary expenses on her rental home bring it down around 50% Gwen still has her car from college and she intends to hold it for years to come What are Gwen’s plans for the future? Hot seat questions

038R | Firewalker Sep 01, 2017

038R | In today's podcast we discuss Episode 38 The Why of FI plus we announce three of the finalists for the business building competition with Alan Donegan of PopUp Business School and a voicemail from community member Geoff. In Today’s Podcast we cover: Discussion of Episode 38 on the Why of FI Jonathan’s Frugal Win of the Week at Costco by saving on protein bars Jonathan’s nutrition goals and the underlying concepts of simplicity and removing decision fatigue How unusual it is that the FI community is outside the mainstream by saving money whereas the norm is spending every dollar you have The elevator pitch for Financial Independence Brad believes the psychology behind the Why of FI is more important than the actual numbers Numbers will always be a focus as is saving money, but the psychology is essential How has Jonathan’s focus changed since the beginning of his FI journey and since the beginning of ChooseFI Jonathan has latched onto the ideas of simplicity and happiness The new concept of the FireWalker, as coined by our community member Cody Has Jonathan shifted from being a spender fundamentally? How has the journey impacted Brad? Brad’s thought about community and connection matter more than he even thought The connections that are made possible due to the ChooseFI community Local community meetups and our request for community leaders throughout the country and world Everything is connected with FI as a life optimization strategy Voicemail from Geoff about sequence of return risk and working towards a minimalist lifestyle and how to optimize life What do you have control over? Focus on that Cutting expenses and getting your lifestyle creep under control The 4% rule explained Geoff’s plans for different scenarios and his budgets Geographic arbitrage for moving to low cost of living area Think in advance for different situations you may face in the future Competition with Alan Donegan from PopUp Business School: We play 3 of the finalists that were picked by our panel Giveaway winner for the free Camp ticket in Florida in January Book giveaways Vote for the Plutus Awards to support the many bloggers who are active members of our community Links from the show: Impact Theory Quest Nutrition Retirement Manifesto JL Collins Stock Series The Shockingly Simple Math Behind Early Retirement Dominick Quartuccio PopUp Business School FI 180 Vote for the Plutus Awards

038 | The Why of FI Aug 28, 2017

038 | In today's podcast we discuss one of our most important topics: The Why of FI. Why we pursue this path, why we think it's a life 'superpower' and how it can help you escape the hamster wheel of life decades earlier than most people could ever dream.

In Today’s Podcast we cover: Discussion of the Why of FI as an introduction to the concept of Financial Independence and why we’ve chosen this path and this community Jonathan’s explanation of the “hamster wheel” and what the normal ‘American dream’ looks like and why this will keep you chained to this treadmill for decades to come This is not a pursuit of freedom, but a pursuit of “stuff” You’re working full-time to afford these things that you can’t use because you’re working all the time

The important thing to focus on is what makes you happy Time is your most important resource This is not about liking or hating your job. This is about freedom and taking the power back in your life The concept of drifting and Jonathan’s questions that can help you highlight this feeling in your life

It is so hard for most people to find a way out of this life because they don’t have the time, energy or resources to figure a way out. But FI is the path out! FI is a truly optimistic message where everyone can make a difference going forward in their lives Instead of buying stuff, we’re looking to buy our magic ‘perpetual money making machine’ We try to keep our savings rate as high as possible and investing in low cost index funds

This is not a get rich quick scheme. You need to learn what you don’t know to get on the path to Financial Independence FI is about math and your savings rate FI is not about deprivation through frugality, but about making smart choices and optimizing things in life

How Brad saves a significant amount of money by being smart about a handful of things like house, car, cell phone, cable and food Jonathan is a ‘reluctant frugalist’ but he has seen the value in pursuing FI FI gives you the power to choose what you do with your time and if you intend to work going forward

You can start tomorrow to save money and pursue this path Now you can focus on what you actually want to do with your time in the future Most people’s lives would collapse within 3 months if they lost their jobs, but pursuing FI changes that entirely and gives you power to choose what you do You also have flexibility that would have been previously impossible

037R | Slow Travel Aug 25, 2017

037R | Today we discuss Episode 37 with Scott Rieckens, the filmmaker behind the FI documentary Playing with FIRE, plus emails and voicemails from the community and a discussion of reaching FI in a high cost of living area.

The great American Eclipse and our viewing Brad’s vacation and how they spent $0 on hotels for 16 nights The value of slow travel and why it makes vacation dramatically better.

Vacation doesn’t have to be stressful How expectations management is so crucial to life and on vacation Time is such a crucial tool Scott’s slow travel with his family and the yearlong adventure they are on visiting family and friends while filming the documentary There should be creativity and excitement in your future and your decisions The list of things that made Scott’s wife happy on a weekly basis and how this was an inspired decision by Scott

Sell your value first and then grow your network. How Scott did a masterful job at this by creating a network and even leaning on our network How Brad connected instantly with Scott and wanted to help him

This documentary can help take the concept of FI to the mainstream Email from Paige on limiting beliefs and how it isn’t “impossible” to live in a high cost of living area for under $50,000 per year Paige thinks that you may need to be a “little more intense” to hit FI on a low income, but that it is certainly possible and it is all about savings rate

How we all have limiting beliefs that we need to work through to “think about a problem a little bit differently” Brad’s decision to leave Long Island, and how that helped the path to FI. But could they have been more intense and stayed and still reached FI?

You can be on the path to FI moving forward no matter where you’ve been or what “bad” decisions you’ve made in the past There’s no perfect person or situation for FI – just try to be a little better going forward to make positive changes Email from Art Vandelay and how they love the show and have made a lot of positive changes since listening.

Should we stop the FIRE from spreading? We need local leaders for ChooseFI local meetups so please reach out to us

Voicemail from James about his successful trip from Nashville to Europe using travel rewards points

Voicemail from Rachel about how to hack your TSP to save money on your student loans

037 | Playing With FIRE | Documentary | Scott Rieckens Aug 21, 2017

037 | In today's podcast we speak with Scott Rieckens, the creative force behind the upcoming FI documentary called 'Playing With Fire' and we learn about his FI journey and this exciting project. In Today’s Podcast we cover:

A discussion with Scott Rieckens, the creative force behind the upcoming FI documentary ‘Playing With Fire’ we’ve discussed on previous episodes Scott is devoting the next year of his life to create this documentary about the FI community Scott’s background story and how he found FI How they were on the ‘hamster wheel’ just working to pay for the lifestyle they were living The importance of a side hustle or entrepreneurship Scott consumes a lot of media, including podcasts and found the Tim Ferriss show especially valuable Lifestyle creep in their living arrangements in Coronado How Scott found Mr. Money Mustache and the FI community through the Tim Ferriss podcast Living a life of happiness while pursuing Financial Independence

You don’t need $10 million (or a similar amount) to retire early How Scott enjoyed the positive nature of the FI community How Scott presented the FI concept to his wife and the thought of ‘why isn’t everyone doing this?’ How Scott framed FI to his wife with the focus on happiness Looking at expenses in the framework of a 10-year timeline Scott’s wife’s list of the things that make her happy on a weekly basis Considering moving out of Coronado and California generally:

Geographic arbitrage How your entire life costs less when you leave a high cost of living area How they approached the decision to move out of Coronado and what that process looked like How moving allowed Scott to take a year of his life to create the FI documentary Playing With Fire Scott’s wife was not only on board with the decision, but she wanted to travel in a camper and go on an adventure Pursuits that matter to them that they now can pursue on the journey to FI

The timeline behind Scott’s FI journey and decision to create the FI documentary Scott’s surprise that no FI documentary already existed and his start approaching us at ChooseFI to discuss the project How the idea of FI can be life-changing for so many people How this documentary can help spread the message of FI

How he decided to call the documentary ‘Playing With Fire’ Hot seat questions Scott’s biggest financial mistake was taking on too much student loan debt Scott would have ‘house hacked’ to buy property in his college town if he could do it all over again

036R | The Country Club of FI Aug 18, 2017

036R | In Today’s Podcast we cover: Discussion of the community aspect of Episode 36 with JL Collins There is a yearning and desire for community meetups with other members of the Financial Independence community

The spread of these community meetups and longer Chautauqua and Camp events throughout the world The ever growing FI community in the Richmond, VA area where Jonathan and Brad live How much money could we all save if we had like-minded people in our communities?

Discussion of Millennial Revolution’s article The Five Types of People You’ll Meet on Your Way to FI Spreading the concept of FI with people who may be predisposed to it who are already in your life

The new MMM Headquarters in Longmont, CO that Pete just opened and the value of that community Voicemail from Chris from our community on how he has saved over $146,000 since listening to ChooseFI a few months ago just by making small changes in his life Voicemail from Aaron in San Diego on VTSAX and potentially diversifying with other index funds for small and mid-cap funds Hard L’s comment on the Vanguard Wellington fund and why he thinks it compares favorably to VTSAX and Jonathan’s response to this actively managed fund and why we don’t necessarily recommend it Voicemail from Tinian from Life Outside the Box on using a daily journal each morning to set his intentions for the day and to express gratefulness How to support ChooseFI Travel Rewards voicemail from Marilyn on how travel rewards helped her imagine possibilities for her future Explanation of the show notes for the ChooseFI podcast Frugal Win of the Week from Gwen from Fiery Millennials Frugal win of the week from Sara Itunes Reviews of the Week and book winners Links from the show: The Five Types of People You’ll Meet on Your Way to FI at Millennial Revolution Introducing the MMM World Headquarters Building Life Outside the Box.me Marilyn’s episode on Radical Personal Finance Marilyn’s Infant Dental Center Fiery Millennials Zenni Optical Books Mentioned in the Show: The Five Minute Journal

036 | Community, Chatauqua & AMA with JL Collins Aug 14, 2017

036 | In today's podcast with Jim Collins from The Simple Path to Wealth and JL Collins NH, we discuss the Chautauquas, in-person events plus an 'Ask Me Anything' series of questions from our ChooseFI community. In Today’s Podcast we cover: Part 3 with JL Collins from JLCollinsNH, the Simple Path to Wealth and Stock Series fame Jim’s discussion of Alan from PopUp Business School and how the UK Chautauqua came to be The value of in-person events like Camp Mustache and the Chautauquas Ask Me Anything segment with Jim with questions from our audience and private Facebook group Question from Amber from our Facebook group about the value of annuities, reverse mortgages and fixed income items Jim only recommends investing in stocks and bonds. The goals that Jonathan spoke of in the question can be balanced by allocating different percentages to stocks and bonds Jim believes annuities and reverse mortgages are laden with fees that make them poor investment vehicles Annuities pay a guaranteed income which appeals to many people, but since you are buying them from an insurance company you are buying this contract and you will never see your principal ever again. That is the annuity contract The insurance company is betting on your death essentially based on actuarial tables for the annuity

Question from Emily on international equity allocation Jim doesn’t see the need to hold international funds because VTSAX contains a significant international allocation with US multinationals, the expense ratios are higher and there is more risk because of lack of transparency in emerging economies

Question from Jeff on when to move from 100% equities to holding some bonds

Question from community member Brad on how to mechanically rebalance your funds Jim does his rebalancing within his IRAs so there is no taxable event He rebalances approximately once per year

Question from David on being too aggressive and Japan’s prior decades performance Jim believes what Japan is going through is a “Black Swan” event and this is theoretically possible this will happen to the US

Questions from Felisa on Jim’s thoughts on inflation Some inflation is normal and to be expected, but runaway inflation is extraordinarily scary

Question from Matt on why Jim is in a different bond fund than he recommends on his site The Key to the Simple Path to Wealth is buying and holding for the long term You always need to approach your life and FI journey with an open mind and be willing to be flexible and change as the facts change Simplicity and flexibility

035R | The 4% Rule Aug 11, 2017

035R | In today's podcast we discuss our takeaways from Episode 35 with Big Ern from Early Retirement Now, plus paying off mortgages and student loans early and frugal wins of the week from the community. In Today’s Podcast we cover: The Friday Roundup after Episode 35 with Big Ern from Early Retirement Now This episode was long awaited, but was necessary to wait for until we provided the background of FI for the audience Ern’s information made us both feel more hopeful for the future of FI and sequence of returns risk Both ‘savers’ and ‘early retirees’ can’t both simultaneously win with the sequence of returns risk Savings rate is the most important part of living a FI lifestyle and succeeding with long-term savings The concern with sequence of returns risk is only when you see a prolonged and significant drop in the markets. To the tune of 5+ years and 20%+ drop Question from the audience to Big Ern about inflation being included in the safe withdrawal rate and Ern’s response Ern does indeed take inflation into account when he performs his calculations How does preserving your capital factor into “success” when looking at your FI plan? How does inflation factor into it? Your personal look at what constitutes success – it always depends on “facts on the ground” for your personal situation Should you pay off your mortgage early? How sequence of return risk factors into this decision The math suggests you should always invest the money and not pay off your mortgage early However, there is a great psychological allure to paying off your mortgage What would have happened if Jonathan had invested his money in VTSAX instead of paying off his student loans? Dollar cost averaging versus lump sum investing Input from Danny from our Facebook group on flexibility and early retirement The value of mentally rehearsing what would happen in a downturn to avoid selling at the bottom How are people taking action in our ChooseFI Facebook community this week to improve their lives in one simple way Travel Rewards voicemail from Andrew about his successful trip to Argentina How to win with travel rewards: flexibility with your dates of travel, plus planning far enough in advance, being ready to pull the trigger when you find availability and then looking at all your options when booking with UR points Frugal win of the week from Ashley: 300,000 miles on her Toyota in 18 years! The value of finding a trustworthy mechanic ChooseFI meetups are popping up across the country Itunes reviews of the week Links from the show: Early Retirement Now JL Collins NH Dominick Quartuccio (link for the book Design Your Future)

035 | Sequence of Return Risk | Early Retirement Now Aug 07, 2017

035 | In today's conversation with Big Ern from Early Retirement Now we discuss safe withdrawal rates, sequence of returns risk and much more.

In Today’s Podcast we cover: A wide ranging discussion with Big ERN from Early Retirement Now on sequence of return risk and safe withdrawal rates

This is Big Ern’s first podcast! And a thank you to him for helping with Paul’s case study Ern’s thoughts on social security Ern’s origin story and his thoughts on early retirement He had a student loan that he invested since he went to college for free. So he ended up with a positive net worth after graduation Why do we need to be concerned with sequence of return risk?

Ern says that sequence of returns risk is the “reason why people run out of money in retirement” from getting unlucky with low returns in the first 5-10 years What are “real returns”? Adjusted for inflation

The years to worry about having poor returns are the first 5 to 10 years and it has to be prolonged and significant Hypothetical example of the 4% rule and what Ern thinks about it

Resources to game out your chances of success Example of sequence of returns risk for an early retiree who is withdrawing money from the portfolio How sequence of return risk impacts the saver and buy-and-hold investor If you’re a saver during downturns, you benefit significantly

Buy and hold investors should not be impacted as long as they didn’t sell during the downturn Talking through the ‘stubborn’ 4% withdrawals and the impact on success of early retirement. Ern’s look at the real-world ramifications of a market drop and withdrawals ‘If you’re unlucky, you can get screwed twice by sequence of return risk’ example

How to alleviate sequence of return risk Mortgaging your future contributions by buying on margin and front-loading Spreading out your contributions to the equities market over years lowers your sequence of returns risk Ern’s thoughts on front-loading and a description of his investments

Thoughts on Bogle’s prediction that 4% returns can be expected in the near future The “4% rule of thumb” What worries Ern about someone retiring early in the next 10 years? What do you do if you inherit $100,000? Ern’s thoughts on 30x expenses saved up and what his safest safe withdrawal rate would be

034R | What’s Your Risk Tolerance? Aug 04, 2017

034R | In today's podcast we discuss our thoughts on Part 2 of the Stock Series conversation with JL Collins, risk tolerance, doomsday scenarios and rebalancing.

In Today’s Podcast we cover: The Friday Roundup and the episode Part 2 of our discussion with JL Collins from The Simple Path to Wealth and JLCollinsNH

What do you do when there’s a large crash in the stock market? Big takeaway from Jim’s episode You can’t sell at the bottom, so you need to steel yourself mentally beforehand

If you’re starting investing, one of the best thing that can happen to you is a market crash You can’t time the market There are doomsday scenarios, but since they are so rare it is silly to plan for the absolute worst case and ignore the other 99.9% likelihood

Follow the math when making the best decision with the information at hand Question from Kevin about when to “take all your chips off the table” That event would have to be extraordinary and destructive for our country and economy

Spend less than you earn and invest in broad based index funds Feedback from Nancy on asset allocation and comfort with volatility and her belief that you shouldn’t take a lot of risk if you don’t need to Jonathan’s example of rebalancing and a hypothetical $1,000,000 portfolio and a 50% market crash

Equities will return significantly higher than bonds over the long term. Bonds do “smooth the ride” but lower long-term returns You want to rebalance in accounts like IRAs, 401ks that won’t trigger a taxable event Brad’s example of his parents investing strategy Over the long term which option is truly riskier?

Investing in stocks and facing volatility or lowering your expected return by investing in cash or bonds The 4% rule is based on getting a return while pulling out money each year, so you can’t just stick it in cash and expect the money to last forever

The power of the ‘perpetual money making machine’ to last forever

ChooseFI was mentioned on Forbes as one of three financial podcasts for people of all ages to listen to

We need panelists to select the finalists for the business building contest with Alan Donegan Lance on our Facebook group pulled the trigger on FI today – congrats!

What did Brad and Jonathan put into place this week as one life optimization? Jonathan’s salad hacks Jonathan is now saying “stimulus and response” out loud when finding something habitual in his life ChooseFI is not just limited to finances. It is a life optimization project Voicemail from Scott (Brad’s brother) Frugal wins of the weeks Itunes reviews of the week

034 | The Stock Series Part 2 | JL Collins Jul 31, 2017

034 | This podcast is Part 2 of the Stock Series discussion with JL Collins, author of The Simple Path to Wealth and the website JLCollinsNH; we discuss the Great Depression and the mindset you need to be a successful long-term investor, plus how to allocate between equities and bonds.

In Today’s Podcast we cover: Part 2 of the Stock Series conversation with Jim Collins If you have not yet listened to Part 1 you can listen to it here Be sure to check out the associated Friday Roundup here for Brad and Jonathan's take-aways

A discussion of what happened during the Great Depression and the Crash of 1929 A large portion of the crash was due to many people buying stock on margin Jim’s explanation of leverage and buying stocks on margin Jim’s Four Lessons to watch out for Making peace in your mind when a crash/correction happens. What caused it? Psychology or something legitimate?

Unless you believe the US economy has permanently collapsed, then “the market always goes up” over time according to Jim Jim says the best thing that can happen to a young investor is a market crash as you get to purchase stocks “on sale” for potentially years Savings rate is the most crucial aspect for the FI community since it allows you to continually invest in good markets and bad Bull markets and bear markets are a part of life.

We need to toughen up mentally to prepare for both Jim’s explanation of the 40 year period starting in 1975 showing the calamities that happened and yet how far the market increased Nobody knows what the next 40 years will hold, but we have a dynamic economy What stage of investment life are you in? It varies depending on your age Wealth building and wealth preservation stages and the discussion surrounding both When you’re in the wealth building stage you need to have your psychology correct: Keep pumping money into the market and take advantage of sales when the market goes down 100% equities in the wealth building stage per Jim When you stop working for money you are in the wealth preservation stage What percentage should you have in stocks and bonds in the wealth preservation stage

The more you have in bonds the smoother your ride will be, but the lower your return will be Your tolerance for volatility will determine your percentage in equities and bonds Would Jim ever consider going back to 100% equities? Mathematically you are always better off in stocks than bonds over the long-term

Even Jim contemplated selling during recent market plunges, so everyone is susceptible to this

033R |Highlighting the Hamster Wheel Jul 28, 2017

033R | In Today’s Podcast we cover: Unpacking Episode 33 with Dominick Quartuccio and our takeaways from the episode

Intentionality allows you to purchase your freedom, and we want to expand that intentionality beyond just personal finance

Our focus on living a happier, more content and optimized life The ultimate luxury is the ‘perpetual money making machine’ to provide time and focus on what matters in life

How Dominick spent $28,000 this year on personal development. Have you spent any time or money on your own personal development?

Spending on things that you value, and directing money and resources as such How to improve your life for $0 and learn and grow Brad’s challenge: Make one change in your life this week that will make your life better

Break some negative habit and disrupt it in your life this week Jonathan’s change this week: Eating carrots and salad without salad dressing Meditation and breathing.

Take one deep breath. Brad’s description of his meditation practice What gets you excited or nervous about life coming up in the near future? How are you expanding your horizons?

How Jonathan has learned by starting ChooseFI and how it has been the excitement in his life this past year Discussion surrounding guilt over not feeling content with your “perfect” life Limiting beliefs: Don’t let them hold you back and also go back and analyze the beliefs and stories you have been carrying with you your entire life

The value of making small changes over time to improve your health Jonathan’s search for better tea

Feedback from the audience on Episode 33 with Dominick

Frugal Wins of the Week: Holly saved money by not going to the movies and bought the game Outburst
Adlay fixed his air conditioner after watching videos on replacing a capacitor on YouTube
Quote from Paige how she only has control over her spending and savings rate
Discussion about contest with Alan Donegan on building a business Voicemail from Jessica with new segment we’re calling “Highlighting the Hamster Wheel”
Voicemail from Royce who used our voiceover guy for his side hustle contest submission
Voicemail from Thomas about a side hustle to teach English to Chinese students Itunes reviews

033 | Design Your Future | Dominick Quartuccio Jul 24, 2017

033 | In today's podcast we speak with Dominick Quartuccio from DominickQ.com and the author of the book Design Your Life about disrupting your behaviors and 'creating a future you can't wait to live into.'

In Today’s Podcast we cover: Our guest is Dominick Quartuccio the author of Design Your Future who is here to talk about ‘designing a future you can’t wait to live into’ This is a very personal episode for Brad, as Dom is a close friend and the person Brad goes to for advice and motivation FI is focused on freedom and that is what Dominick focuses on, but with an emphasis on energy People in Dominick’s world were asking questions about ‘where to go from here’, even though they seemingly have everything

Community is such an essential aspect of life We all need to be intentional and not drift through life Dominick’s explanation of the term ‘drift’ as defined by Napoleon Hill and what happens if you live an unintentional life How to know if you’re drifting in life? Are you reacting based on fear? Progress is an essential aspect of being a human

What is on your life horizon that gets you ‘excited like a kid on Christmas morning’? How beliefs impact how you live your life and how Dom’s belief held him back from leaving his corporate job Systemic spending. How Dom’s gym impacts his entire system An awakening: Most are unintentional, but Dominick advises looking for intentional awakenings

Disrupting: How to disrupt your behaviors, stories, etc. Possible disruptions would be to abstain from a behavior for a period of time (“no Netflix for 60 days”, etc.) ‘The space between a stimulus and the response’ How to interrupt your normal response after a standard stimulus How 95% of your thoughts, feelings, behaviors, etc. fall below your conscious thinking

How the 5% of conscious thought can impact and change the 95% of habits, behaviors and become habitual How to design the future you can’t wait to live into Writing your own eulogy to focus on the ‘celebration of life’ How long do you want to live? What do you want to experience in life?

What did you leave behind – what lives on beyond you? Shifting your focus to realize you have ‘ultimate authority’ over your life Dominick’s Eulogy A 90 day action plan to set a defined goal to help design your future

The value of small changes and process improvements over time What happens to your energy when working through a 90 day plan and tips to sustain the plan How to curate an internal state that makes you stronger Hot Seat Questions Meditation is Dom’s favorite life hack Dom’s biggest financial mistake: spending too much money launching his business

032R | The Checkpoints of FI Jul 21, 2017

032R | In today's Friday Roundup we discuss Episode 32 with Joel from FI 180 on the 'Milestones of FI', plus a life hack voicemail from Noah and Frugal Wins of the Week from our Facebook community.

In Today’s Podcast we cover: The Friday Roundup after the Milestones of FI episode with Joel from FI 180 We’re having a FI get together in Richmond and hope to expand beyond Richmond

The gamification aspect of personal finance and the milestones When your ‘financial freedom clock’ starts and discussion of where certain types of debt plays into the calculation Financial freedom clock equals positive net worth and all junk debt is paid off Milestone two is when you have a $100,000 net worth (when Personal Capital starts calling you for a personal consultation)

The next milestone is ‘FU Money’ and there is discussion on where this fits into the continuum as the concept is nebulous

Should there be a milestone before $100k net worth and FU money? Adding in ‘checkpoints’ along the way on the journey to FI in addition to milestones Milestone four is ‘Half FI’ which means you have 12.5x your annual expenses saved up

Milestone five is ‘Lean FI’ which means you have enough to cover all your core expenses for life (not including your discretionary expenses) The discussion surrounding the math and psychology of paying off your mortgage or not paying it off The next milestone is the “crossover point” where your investments earned more than you did from working in a given month

The many catchphrases of Brad and Jonathan Milestone 7 is Flex FI, followed by Financial Independence as Milestone 8 and Milestone 9 is Fat FI The power of the concept of Flex FI and how you have an 82% chance of succeeding even at this milestone

The conversation surrounding where Brad is on the path to Financial Independence and where the side hustle factors into the calculation Our ask that the community helps us refine the milestones and checkpoints

How Joel’s FI journey and drawdown strategies can be a case study going forward Voicemail from Noah from Money Metagame on hacks to save on utilities

Take action and make the calls to compare prices on auto insurance, utilities, etc. Frugal win of the week from Michelle about unclaimed property Frugal win of the week from Vicki about Magical Iced Coffee Input from Don and Scott about buying cards and gift giving

Focus on our discussion about gift giving from a prior episode and the Five Love Languages

032 | The Milestones of FI Jul 17, 2017

032 | In today's podcast we discuss the Milestones of FI with Joel from FI 180; this is a new look at the path to FI and the milestones along the way. In Today’s Podcast we cover: The ‘Milestones of FI’ with Joel from FI 180 We welcome Joel as our first repeat guest on Choose FI The Milestones of FI as a ‘master’s degree’ journey after Dave Ramsey’s baby steps Joel plans to be fully FI in January 2018 Joel is completely debt free and is shooting for $25,000 per year in other spending FI creates a “magic money making machine” that spits out yearly ‘checks’ (the 4% rule) FI is the ultimate luxury purchase to save for this ‘magic money making machine’ The Dave Ramsey Baby Steps explained To get started on the Milestones of FI: Debt Free and/or $1 of positive net worth First FI Milestone: $100,000 net worth when you first start getting calls from Personal Capital to setup a phone consultation 2nd FI Milestone: ‘FU Money’ set; 2-3 years of yearly expenses saved up 1st and 2nd milestone can be similar depending on your yearly spending The 3rd milestone is ‘Half FI’ which puts you halfway to FI in total spending, but actually more than that in terms of time on your FI path The path to FI is not linear and Joel explains Milestone #4 is ‘Lean FI’ which means you have enough money to stop working forever if you cut out the discretionary aspects of your budget (about 30% of Joel’s budget) Lean FI is an ‘emergency fund that would last forever’ as it covers your housing, food and other essentials Lean FI is perfect for people with a side hustle to do it with no risk The ‘crossover point’ could be another Milestone of FI. This is where your portfolio increase is more than the income you’re earning from your job The next milestone is ‘Flex FI’: This is a ‘5% rule’ or 20x your annual spending in your total net worth Flex FI is only viable for people who can build flexibility into their lives from year to year depending on the market returns, etc. FI is not one milestone but a smooth continuum towards this goal Flex FI has an 82% chance of success according to the Trinity Study (75% stocks, 25% bonds) Financial Independence is the 7th 25x your annual spending. All the work you do after you reach FI is completely optional. Now you can do what you want with your time. When you reach FI you can pick and choose what you want to do at work and in life The 8th milestone is ‘Fat FI’: This is 30x your annual spending which is the “closest thing to a sure thing” you can get in life Where is Brad in milestone continuum? Where is Jonathan? What does Alexis and Joel’s milestone celebration look like? Links from the show: The Milestones of FI at FI180.com Mad Fientist’s FI Laboratory cFireSim Early Retirement Now Fiery Millennials Personal Capital (affiliate link) Slowly Sipping Coffee

031R | FI Documentary? Jul 14, 2017

031R | In today's Friday Roundup we discuss travel rewards, flipping holidays upside down, buying presents, the upcoming FI Documentary and much more.

Submit your applications for the contest to win a one-on-one business coaching relationship with Alan Donegan from PopUp Business School

Brad’s slow travel vacation through New York State this August How we’ll publish episodes while on vacation and living a FI lifestyle

Discussion of Episode 31 on travel rewards What to do with your strategy after Chase cards Clarification of Brad’s past and future travel rewards strategy Noah’s feedback about an alternate option for staying under the Chase 5/24 rule Feedback from the audience:

Pastor FI on how he switches Mother’s Day and Father’s Day

Feedback from Frank on not doing things on holidays or other busy times. Don’t wait in line “with the lemmings” If you’re busy all the time, you need to come up with strategies to make your life better

How Jonathan feels that buying cards for holidays are a terrible waste of money

Brad and Laura don’t exchange presents for any holidays/birthdays/etc. Jonathan’s spending habits for presents for his friends and family

How essential the concept of progress is in the pursuit of FI and the pursuit of happiness

Voicemail from Scott Rieckens on how he’s starting a documentary about the FI community How we can grow the FI movement through this documentary and by spreading the word We’re going to have Scott on the podcast and he’s going to tell us about his Kickstarter campaign for the documentary

Question from Bonnie about tax implications in early retirement Response from Keith from the Wealthy Accountant Follow up from

Brad on action he took to sell his comic book collection Email from

David how he wants to hire Jonathan’s wife Dani to do an audio book version of the book he intends to publish

Frugal wins of the week from our community Can you share items with your neighbors and save money?

031 | Travel Rewards What Comes After Chase | Teach Me How To Disney Jul 10, 2017

031 | In today's podcast we discuss Part 2 of our Travel Rewards series including what to do after you've focused on Chase credit cards plus whether you should focus on one trip or a general strategy.

In Today’s Podcast we cover: Part 2 of the travel rewards podcast series on where to go when you’re done with the Chase credit card options Does it make sense to go after cards for a particular trip like Walt Disney World or should you focus on Chase cards while you are under the “5/24 rule?” Brad and his wife Laura are both trying to get back under 5/24 and waiting to open up cards

If you are doing this with a spouse you can realistically open 10 Chase credit cards (5 each) What cards would you get from other banks such as American Express, Citibank, Barclaycard and Capital One? American Express has a one bonus per card per lifetime rule Amex has a transferable points program called Membership Rewards that is a quality program (similar to Chase Ultimate Rewards)

The transfer partners we like from Chase Why we like “fixed value” cards such as Arrival Plus and Venture To branch out beyond Chase cards or not? If you’re a member of the FI community it would be hard to ignore the Chase cards to focus on a specific trip like Disney

For people not aware of travel rewards, a “quick win” like booking the Disney Dolphin hotel is a great way to get huge value from your points Buying Disney tickets from Disney does not count as “travel” for credit cards, so you need to use Undercover Tourist (or aRes Travel for Disneyland)

Orlando International Airport is a huge hub for Southwest, which is our favorite airline rewards program Southwest does not limit award ticket availability – it is just based on cash price You have a lot of flexibility with Southwest Airlines miles Flexibility will help you succeed with travel rewards

030R | The Side Hustle “Unpacked” Jul 07, 2017

030R | In today's podcast we have the biggest announcement in the history of ChooseFI thanks to Alan from PopUp Business School, so be sure to listen and get your responses in ASAP.

Brad’s thoughts on not doing what everyone else is doing: July 4th, Valentine’s Day, Mother’s Day, etc.

Jonathan’s wife loved the episode with Alan and she is going to use these skills on a side hustle herself

You don’t need a lot of money to start a business – the big takeaway from the episode for Brad Bartering skills and maximizing unused resources were two takeaways for Jonathan’s wife

Mutual benefit from establishing relationships even when you can’t see where the value might come from Sell your value first and then create the product or service You won’t know if your product or service is legitimate until you actually make people buy. That’s the only real feedback Feedback from Luis on the ChooseFI private Facebook group on his wife’s side hustle

How Brad’s business history set him up for success, as he failed and learned along the way

How to find low-cost ways to attempt new businesses

The different mental approach when using a side hustle as a means to get to FI Brad’s personal approach to his side hustles and what would happen if they ‘went away’ Huge announcement of a competition: Alan will work with one winner one-on-one for 12-24 months to help them build their own side hustle business Submit your voicemail submission on our website and tell us why we should select you How this will impact the entire ChooseFI community We’ll bring in our other in-house experts on this project as well Small world stories of meeting other members of the FI community Email from Evan from Bellingar Estates Winery in Oregon What to think about mentally in good times and bad in the financial markets

030 | The Side Hustle | The Unspoken Lever of FI Jul 03, 2017

030 | In Today’s Podcast we cover: How Alan Donegan of PopUp Business School has turned starting businesses on its head similar to how FI has turned personal finance on its head and caused us to think differently

How starting a business is truly one of the ‘pillars of Financial Independence’ Brad and Jonathan started up their own business with ChooseFI based on similar principles to what Alan is teaching You need to know what you’re running to in FI and not just what you’re running from with your old job Alan’s FI journey and his goal to get to FI by the age of 40

How Alan was nearly scared off from starting a business by the course he took through the British government with Business Link Started up PopUp Business School with his business partner Simon Why Alan believes you don’t need any startup capital, business plans, etc. to start a business Story of a popup café/restaurant in London and how this person didn’t spend a dollar to get started

The value of networking and genuine human connection What stops you from starting a business? Money is the biggest issue. Confidence and scared that it will fail are two others and knowing what to do on a day-to-day basis

The value of learning with no risk 5 ways to start a business with no risk

#1: What can you get for free? Actionable steps: Search on Google “where can I get X for free”

#2: What can you borrow? Story of minivan rental business and how they borrowed the minivan and saved 99% of the original business plan amount The only way to truly test your business and get an honest response is if you ask for a sale and see if they buy

#5: Sell Your Value Before You Create It: Sell the idea first, get the money, then produce the content/product Story of Dennis selling lasagna and collecting the money first in order to purchase the ingredients

#3: Could you barter instead of using money? In order to feel comfortable asking for things, focus on relationships and giving value. We all have skills that others would value

#4: Sell stuff you already have Another option is to sell someone else’s stuff and split the profits! Brad’s idea for an online consignment store

How passion and helping others motivates you to work on your business How Alan’s business is helping those who most need the support and how people pay $0 to attend PopUp Business School Hot Seat Questions Favorite life hack: Geographic Arbitrage

029R | Valuist Jun 30, 2017

029R | In today's Friday Roundup we discuss our key takeaways from Episode 29: The Reluctant Frugalist vs. the Aspiring Minimalist, plus feedback from the audience as well as two of our in-house experts.

How Jonathan used travel rewards points to book two round-trip flights to South Africa to visit his wife’s family. Only 128,000 points! How to think through a travel rewards redemption and where to start

The essential nature of the psychology when considering financial independence

How to approach your spouse/significant other about FI and what to avoid – namely the word “retirement” What is Brad willing to spend significant money on? Email from Bo about a new term: A ‘Valuist’ and how this applies to Brad Feedback from our Facebook group from Christopher about a ‘false dichotomy’ Feedback from Jessica – there are no rules of being a minimalist, it’s a journey and a mindset Voicemail from Geoffrey about reducing stuff and choice with a cool challenge with your clothes How the KonMari method tidying has transformed lives How to have a conversation with friends and coworkers about FI when they know nothing about it The difficulties of talking about FI at work and how to navigate that Know your audience when discussing FI and figure out an approach that will resonate with people Update from in-house experts: Millionaire Educator released his 2017 Free Money tables Big Ern responds to Mark’s question on the pluses and minuses of ETFs and mutual funds and how to choose between the two New in-house expert: Noah from Money Metagame who will share life hacks Voicemail from Noah about how to save on purchases using discount gift cards as payment Voicemail from Marilyn challenging the ‘sacred cow’ of always buying used cars and how it can be a smarter decision to buy a less expensive new car that you plan to keep for a long time Can a car loan make sense if you have a lower interest rate? How to negotiate on purchases by mass emailing multiple competitors and Brad’s challenge to the audience Frugal wins of the week from our private Facebook group Book giveaway and iTunes review Links from the show: Decision Fatigue article at Wikipedia Headspace Mad Money Monster: Early Retirement Resistance - When Friends Push Back 1500 Days ESI Money Mr. Money Mustache Millionaire Educator’s 2017 Free Money! Tax tables Early Retirement Now Money Metagame Gift Card Wiki Books Mentioned in the Show: The Life Changing Magic of Tidying Up

029 | The Aspiring Minimalist vs the Reluctant Frugalist Jun 26, 2017

029 | In today's podcast we go through a discussion of the mindset differences between a 'reluctant frugalist' like Jonathan and an aspiring minimalist like Brad. In Today’s Podcast we cover: The reluctant frugalist (Jonathan) vs. the mindset of the aspiring minimalist (Brad)

How both these mindsets are valid and strong approaches to the concept of Financial Independence How do you talk to your spouse or significant other about financial independence? Voicemail from Royce about how he can get his wife on board with FI? You need to have a conversation with your significant other about what you want out of life and where you want to go as a team

The pursuit of FI can bring you closer together as it can make you wealthier and happier Jonathan’s story about FI and his wife plus a story of the ‘addictive nature’ of buying stuff How Jonathan changed his entire life with the pursuit of FI FI as the ultimate life hack

You need to see the other person’s motivation and incentives when trying to persuade them Being near or at FI transforms your relationships with your family and friends

How Brad aspires to be a minimalist and live in a hotel Excerpt from Physician on Fire’s article: Minimalism vs. Frugality Frugality and the scarcity mindset How people outside the FI community have to deal with a cash flow scarcity mentality

The differences between a minimalist and a frugal person How free your brain becomes when you remove the clutter from your rooms and your life How Brad’s daughters are different by nature regarding minimalism and clutter

Would you throw out all the items in your house that you haven’t used for some set period of time? 90 days? 1 year? The sharing economy has changed the value of ownership Jonathan’s board game obsession and the value he gets from buying things What a week in Jonathan’s FI future life looks like A minimalist buys one item that fulfills multiple purposes, but is quite expensive and high quality Brand names: Is there any value?

Can you actually find a break-even point on certain purchases? The wardrobe differences between minimalists and frugal people How your brain operates better when you don’t make as many decisions and avoid ‘decision fatigue’ A minimalist doesn’t want a lawn/yard whereas a frugal person enjoys doing it themselves

028R | Lending money to Family Jun 23, 2017

028R | In today's Friday Roundup we discuss tax-deferred accounts, the Roth IRA conversion ladder, frugal wins of the week, an 'expert answer' from the Millionaire Educator as well as the Hot Seat with community member Chad!

In Today’s Podcast we cover: The Friday Roundup after Episode 28 where we discussed the order of operations for savings as well as the available ‘buckets’

Brad’s discussion of his new health targets: CrossFit and Gracie Jiu-Jitsu and how he saves money through a Gracie Garage

Our preference is to fill your tax-deferred buckets as much as possible Message from Amy on the Facebook group on maxing out Roth IRAs

How the FI community thinks differently in regard to Roth IRAs and investing in general Explaining the Roth IRA conversion ladder

Voicemail from Stephen about the Roth IRA conversion ladder and how the calculation changes when you are making income in FI The essence is living a frugal lifestyle and everything else takes care of itself

Brad’s explanation of how to mentally approach having income in FI and even having a higher income than you anticipated Frugal wins of the week: Call from Eric from our Facebook group about how he saved big on his Chicago apartment The love for the InstantPot from the ChooseFI community Anne Marie raised the deductible on her insurance and saved money on her premiums;

Brad saved on car insurance with Geico Congrats to Eli on his new baby and the newest 529 account!

Question from Scott about 457s and pensions to help with early retirement and the expert answer from the Millionaire Educator

Voicemail from SaraEllen about how to save as a solo entrepreneur in the legal profession and by extension to other professionals as well How you can save on office space by using a coworking space

The Hot Seat with ChooseFI community member Chad How people in the FI community can consider giving back Favorite life hack: Using Swagbucks

The danger of cosigning on someone else’s loan If Jonathan loans someone money he mentally writes it off as never being paid back and that’s how he approaches the decision to loan money

Voicemail from Eron from San Diego on financial advisors and the potential benefits A fee only financial advisor would be the best option for most people (especially in the FI community)

028 | Order of Operations | The Buckets | The Roth IRA Jun 19, 2017

028 | In today's podcast we discuss the four different "buckets" available to savers plus an in-depth look at the Roth IRA and the 'Backdoor Roth.' In Today’s Podcast we cover: The order of operations for how you should approach the different “buckets” available to you both for retirement accounts and for your taxable savings Four basic ways for your retirement and investment funds to be taxed Best case is an account similar to the HSA which is not taxed when you put the money in nor when you pull it out

Option 2 is the Roth IRA which is taxed upfront but not when you pull the money out

Option 3 is a traditional IRA, 401k, etc. where it is not taxed when you contribute but is taxed when you withdraw

Option 4 is your regular savings/investment accounts We focus mostly on tax-deferred retirement accounts because that is the best way to lower your taxable income in the current year and reduce your tax liability.

Because of advanced FI concepts such as the ‘Roth IRA conversion ladder’ there is a chance you can pull this money out nearly tax free once you reach financial independence You want to max out your tax-deferred options The FI community looks at this problem differently than traditional financial planners and doesn’t focus on the Roth IRA generally Roth IRA makes sense if you are nearly certain that your tax rate will be higher in retirement than it currently is now (think children under 18)

The issue is this is unknowable at the time of contribution (unless you are at a 0% rate) You can pull out your Roth IRA contributions at any time tax and penalty free Flexibility of your bucket

#4 (taxable savings) is a big positive of that investing option over a Roth IRA The concept of a marginal tax bracket and an understanding of how your income is taxed Financial planners focus on the ‘tax diversity’ play of the Roth versus traditional retirement accounts Income limitations do exist for the Roth IRA

There are also contribution limitations yearly for these accounts How to reduce your Adjusted Gross Income on your tax return to qualify for a Roth IRA The Backdoor Roth IRA option for high income individuals

Discussion of the White Coat Investor article on the Backdoor Roth IRA and how you can convert your money from a nondeductible traditional IRA to a Roth IRA (the ‘backdoor’ Roth) Avoiding the pro-rata calculation How to contribute to the traditional IRA account as a nondeductible contribution and then convert it to a Roth

027R | Debunking the Value of the Mortgage Deduction Jun 16, 2017

027R | In today's podcast we highlight our takeaways from Episode 27 with Jay from Slowly Sipping Coffee, plus we discuss the 'Mount Rushmore' of FI and help debunk a lot of the misinformation surrounding the value of the mortgage interest deduction.

In Today’s Podcast we cover:

The Friday Roundup bringing in many aspects of our audience and community plus our thoughts on the Episode 27 with Jay from Slowly Sipping Coffee How to join the Choose FI Facebook group Looking at the great team of Mr. and Mrs. Slowly Sipping Coffee and how they gained flexibility and freedom How they made a game out of personal finance and that enabled them to save big on their credit card bills Just by being more conscious of their spending allowed them to save over 50% of their discretionary spending How ‘grazing’ by shopping at stores like Target can help fuel lifestyle inflation

It’s important how we spend our time. Batch processing with intentionality is a way to fix our inefficient use of time How Jonathan can come up with a system in his life to find a work/life balance between the ChooseFI site and podcast and his ‘real’ life Multitasking is not a real thing What does your life look like post-FI? And when do you start thinking about that life? The Mount Rushmore of Financial Independence: Who do we put on that list? Who would you as the community put on the Mount Rushmore of FI? What do you want to do with your time when you reach FI? Fully Funded Lifestyle Change as an alternative to “retirement for the sake of quitting work” Risk tolerance and cFiresim Article submitted by Luis on CNNMoney on a couple who achieved FI Hot Seat conversation on the Facebook group The power to spread the message beyond of FI beyond this community Message from Austin who is a former student of the Millionaire Educator Voicemail from Ed Mills from the Millionaire Educator on ways to get your children involved in saving money Voicemail from Juan from Finance Clever about the value (or lack thereof) of the mortgage interest deduction and only getting value from it if your itemized deductions are above the standard deduction Brad’s example of the benefit of itemized deductions Feedback from the audience from Grumpus Maximus about retirement calculators and one in particular from Darrow Kirkpatrick at CanIRetireYet.com Voicemail from Kris with incredible feedback about the action she took after hearing Noah’s voicemail about removing escrow accounts Voicemail from Steve about the importance of umbrella insurance policies plus feedback from Tiffany about the same More information from Ken about ESPPs and call options

027 | Slowly Sipping Coffee | FI vs Risk Tolerance Jun 12, 2017

027 | Today we welcome Jay from Slowly Sipping Coffee to the podcast to talk about his reluctant path to FI, the amazing Mrs. SSC and a Fully Funded Lifestyle Change. In Today’s Podcast we cover: Our interview with Jay from Slowly Sipping Coffee How they came up with the name of their blog and how they’d enjoy ‘slowly sipping coffee’ in a more relaxed and free Friday morning

The origin story of their Financial Independence journey: SSC googled and found Mr. Money Mustache SSC already had a spreadsheet where she tracked everything and believed they could retire at 45 before finding the concept of FI How Jay resisted the concept of financial independence because he thought living off $25,000 would be absolute deprivation

The Lightbulb Moment where Jay finally saw the light and started believing in the spreadsheet They set up challenges to cut credit card spending and they reduced spending just by being intentional Eating food at restaurants was a huge portion of their prior budget that they were able to cut Costco can be a great way to save money or it can be an expensive indulgence

How Mrs. SSC is the CFO of their household and the ‘best financial decision’ Jay has ever made How the possibility of layoffs made them consider their lifestyle and what that would look like in FFLC The psychological value of knowing they will ‘come out on top’ even if something bad does happen Have they spoken about Financial Independence and their blog in their real lives? How their friends, family and coworkers react to their FI plans Jay’s mentees and how he is trying to educate them on all things financial How to balance risk with a safe withdrawal rate – Mrs. SSC’s thought process as compared with Jay’s

How you can always keep working due to fear and wanting to pile on your nest egg, but Mrs. SSC’s rebuttal to that You can get to FI without having a six-figure salary Hot Seat questions Favorite life hack: Roasting his own coffee Biggest financial mistake: Cashing out a 401k for absolutely no reason

Advice to your younger self: Don’t spend more than you earn and don’t use student loans for additional expenses

026R | Case Study | Part 5 | Final Jun 09, 2017

026R | In today's podcast we discuss our takeaways from Episode 26 with Physician on FIRE plus some exciting developments in the Financial Independence world as well as feedback, questions and comments from the ChooseFI community. In Today’s Podcast we cover: The Friday Roundup after the Physician on FIRE interview from Episode 26 Information for the high income professionals and how it’s important to give details for that aspect of our audience Does the perfect answer exist for high income professionals pursuing FI? It might not be possible to defer enough money to get them out of that high marginal tax rate “A dollar saved is two dollars earned in the 50% tax bracket.” A brilliant quote from Physician on FIRE Everything comes down to living a frugal lifestyle “Doesn’t your spouse deserve a really great lifestyle?” asked the White Coat Investor. “Well yes, and she’ll have one, but she deserves my time.” Responds PoF. The fundamental flaw in the ‘retirement calculators’ that are published online for “normal people.” Your current income is not relevant when considering your retirement number. It is all about your expenses. For new physicians, you need to avoid the blowup in spending on cars and expensive homes when you get that first big paycheck You need to keep your fixed expenses down to a manageable level and you can splurge at the margins on other things Don’t fall into peer pressure to live an expensive lifestyle. Maybe move to a smaller town and practice geographic arbitrage in the US Brad’s own geographic arbitrage in his life moving from Long Island to Richmond, VA Optimized charitable giving with a ‘donor advised fund’ Discussion of the ‘backdoor Roth’ that Physician on Fire mentioned on the episode and the applicability for high income earners A new Camp Mustache event was announced for January 2018 and the tickets are available The ChooseFI private Facebook group is running and extremely vibrant and we’d love for you to join us Scott Rieckens contacted us about a documentary on the FI community that he is embarking on The FI community is on the verge of a breakthrough in the US Brad’s mom is listening to the podcast and had a frugal win of the week Feedback from PastorFI: College hack for student housing Discussing the call from Mark from Student Loan Freedom from Episode 25R about permanent life insurance Feedback from about Ken’s prior call about the ESPP from Olaf. He clarified the tax treatment on the purchase through the Employee Stock Purchase Plan Don’t let paying taxes get in the way of making a smart financial decision Noah from Money Metagame’s call about how to remove escrow to potentially save hundreds of dollars per year Part 5 of the case study with Paul including Paul’s feedback on his daughter’s college plans plus Paul’s summary of the case study Frugal Wins of the Week from the ChooseFI Community Itunes Reviews of the Week and Book Winners Links from the show: Physician on Fire Frugalwoods article on Donor Advised Funds Camp Mustache tickets Join our private Facebook group Scott Rieckens website Mr. Money Mustache on the Tim Ferriss podcast Student Loan Freedom KeepThrifty.com Money Metagame Mutual Assurance Society of Virginia ToDoIst Early Retirement Now Google Docs from Big Ern at Early Retirement Now: Google Doc master file for Safe Withdrawal Rates Big Ern's explanation on how to use this file Doc with Paul's case study numbers with Social Security Doc with Paul's case study numbers without Social Security Fiery Millennials

026 | Physician on FIRE | FI for Medical Professionals | Financial Freedom vs Financial Independence Jun 05, 2017

026 | Today we welcome the Physician on FIRE to the podcast to talk about his path to FI as well as tips and hacks for other high income and medical professionals to get on the path to Financial Independence.

In Today’s Podcast we cover: Our guest on the show today is Physician on Fire, who is here to tell us his story as well as some Financial Independence hacks for doctors and other high income individuals His message is for people with high incomes who aren’t looking to live an ultra-frugal lifestyle

What does a conversation look like with a fellow physician in person or on his blog? How difficult is it to delay gratification and not spend significantly when physicians get their “first big paycheck” after many years of not making much money

He recommends physicians paying down their student loan debt so it isn’t hanging over your head Physician on Fire’s own personal history and path towards Financial Independence

He took a “permanent” job at a hospital, which went out of business after 4 years when he lost his job He was financially independent on paper after about a decade of working as an anesthesiologist, but didn’t realize it until he read an article about Mr. Money Mustache How Brad and Physician on Fire each had moments early on in life where a compound interest calculation opened their eyes to the power of compounding over decades

What was Physician on Fire’s plan before he read that article about Mr. Money Mustache? He has a “bigger” FI number than many people, but he wants a margin of safety and wants to potentially spend more in early retirement than he spends now Could he potentially “retire” from medicine and still come back if he so desired?

Are there ways he could make his job better and focus on the aspects of the job that he enjoys? Dealing with high marginal tax brackets and working additional time How does FI impact his “real” life? His wife is excited about the FI lifestyle of living abroad and having more time with POF. Physicians who don’t live in the high cost of living areas on the coasts actually make more money and have lower cost of living Strategies for high income earners pursuing FI: lower your taxable income as much as possible with tax-deferred retirement and HSA accounts Backdoor Roth for high income earners.

You can do this for yourself and your spouse up to $5,500 each His distinction between financial independence and financial freedom and the plan to get there

How he is donating half the profits from the blog through a Donor Advised Fund Hot Seat questions Favorite life hack: Geographic Arbitrage Biggest financial mistake: Building their ‘dream home’ and losing $200,000 upon selling it

Advice for someone starting out in the medical profession: Be smart with the large expenses like housing and cars

025R | Case Study | Part 4 Jun 02, 2017

025R | In today's Friday Roundup we discuss Episode 25 with Keith from the Wealthy Accountant, Part 4 of the case study with Paul including a look at his line-by-line expenses, plus questions and feedback from the audience. In Today’s Podcast we cover: Friday Roundup after Episode 25 with Keith from The Wealthy Accountant The firehose of information that Keith unleashed was incredible! Feedback from the audience about Keith’s episode The value of an S-corp election for small businesses How to find a top tier accountant with passion for helping you When should you form an LLC when starting a side business and are there any benefits of doing so? Danielle’s feedback about our working of “taxable savings.” She used “post-tax savings” which we really like Dominic’s feedback about reinvesting dividends Careers that help you get to FI: Nursing and feedback from the audience on why this is such a positive career on the path to Financial Independence Announcing the ChooseFI private facebook group! Discussion of Camp Mustache Brad’s FI conversation in real life with his friend Justin about $2 per person per meal for dinners How to portion out dinners to save money Laura is going to share her recipes in the new private Facebook group Frugal wins of the week from Jake and Brad Mark Resnick from Student Loan Freedom: Voicemail with a hack on saving money on student loans Discussion of Mark’s voicemail and our request to get one audience member to work with Mark on student loan forgiveness programs Voicemail from Bryce on hacking college How Brad and Jonathan wish they had the knowledge Bryce passed along when they went to college How to start planning early to apply for these scholarships Case study update: Going through Paul’s expenses and analyzing them. What does his post-FI expenses look like? Paul’s expenses drop significantly in his post-FI life $23,000 of his $73,000 annual expenses were on vacations and this can drop significantly in a post-FI life by using travel rewards points and pursuing slow travel Looking at Paul’s actual expenses and what else is “fluff” on top Our update on future case studies: We can’t do these once per month. More likely 3-5 per year. Jason from Winning Williams is putting together a ‘crowdsourced FI plan’ excel sheet Travel rewards question on how to save on cruises. You can use a ‘fixed value’ card to offset cruise expense Itunes reviews of the week and book giveaway Links from the show: Wealthy Accountant Aubrey’s blog: moneyenergyfreedomlife.com Dominic’s link from Bogleheads on reinvesting dividends Emiko: Beetsandlilacs.com ChooseFI.com/Facebook to get access to our private Facebook group Winning Williams Money Metagame Seonwoo’s site: FIby40.com FI180 Popup Business School Dash Go Rapid Egg Cooker Student Loan Freedom

025 | The Wealthy Accountant May 29, 2017

025 | In today's podcast we have Keith from The Wealthy Accountant on the show to discuss tax optimization for individuals and small businesses with plenty of tax tips for your FI tool chest.

In Today’s Podcast we cover: Keith from the Wealthy Accountant presents his tax optimization strategies for individuals and small business owners Keith is the most knowledgeable accountant we have ever met.

We met him in Florida at Camp Mustache and his exuberance for tax optimization was infectious Keith became the official accountant of Mr. Money Mustache after a presentation at Camp Mustache in Seattle A discussion of how to save FICA taxes by being taxed as an S-Corporation instead of as a pass through entity such as an LLC Keith’s discussion of potential tax law change based on the President’s proposal

For people starting a business, where would Keith start? Business structure, getting kids and spouses involved, etc. Keith believes when you have business income over $50,000 that you should be an LLC taxed as an S-Corp Is there value for someone over the FICA cap in their ‘day job’ for their business to be treated as an S-Corp? Home office deductions vs. renting part of your home to your business entity and how to make it official with a formal contract

What Keith recommends for retirement savings and the rules you need to understand whether you are an employee or if you own a business Keith’s recommendation to speak with your HR department to max out your 401k if they only seemingly offer a certain percentage of your income

Tax optimization strategies for real estate investors including the tangible property rules and how to benefit from expensing items that would have otherwise needed to be depreciated Cost segregation studies and how that can save you money on depreciations Healthcare for small business owners and the lack of options

Discussion of Keith’s writing at The Wealthy Accountant. The goal was for people to “think like an accountant” and to live your life ‘right.’ He believes in saving half your income and investing in broad-based index funds. If you do those 2 things you’ll be successful

024R | How to Hack Your ESPP May 26, 2017

024R | In today's Friday Roundup we discuss Episode 24 with Joel and Alexis from FI180 as well as some expert voicemails from Chad Carson about real estate plus Ken talking about ESPP options. In Today’s Podcast we cover: Friday Roundup after Episode 24 with Joel and Alexis from FI 180 Camp Mustache tickets for January 2018 are available for sale, so come and join us! The letter Joel wrote to his younger self and the emotional value of it The sacrifice for living an opulent lifestyle is too great in our opinion as you have finite resources and have to make the best choices Joel and Alexis had a true choice and inflection point where they chose Financial Independence They looked at FI as a game and had fun trying to gain a quicker path to FI. It made them happier and brought them closer together The 72 hour no buying rule that Liz from Frugalwoods informed us about Brad’s new favorite card game: Monopoly Deal Feedback from the audience: Austin’s email about his path to FI with a career that didn’t require a Bachelor’s Degree. He is now earning 6-figures at 25 years of age Itunes review from Derek who is teaching his 5th grade students how to look at money, index fund investing and much more. Geri’s question about reinvesting dividends when you invest in mutual funds. You generally want to reinvest the dividends Question from John about investing in VTSAX in a “taxable” investment and what bucket to put it in? Our advice is to open a standard brokerage account and invest in VTSAX Index fund investing is the most tax efficient investing since there is low turnover and thus lower capital gains that would be taxed in the current year Email from Matt describing how he’s thinking more deeply by listening to our show and reading FI blogs ChooseFI mentions on other blogs FI hack from Ken on ESPPs and Jonathan’s response since he can benefit from it at his job and purchase his company stock at a 10% discount Follow up from our in-house expert on real estate: Chad Carson who gives us a background on how to evaluate the financials behind a rental real estate purchase Travel rewards question about how to review flight and alliance award options. Our thought is to look at traveling differently and build in flexibility and find saver award availability Travel rewards question about combining Chase Ultimate Rewards points Hot Seat intro music update Itunes reviews and The Simple Path to Wealth book giveaway Links from the show: FI 180 Monopoly Deal card game Winning Williams The Green Swan article: Never Pay Taxes Again Done by Forty article: Spending is Arbitrary Ken’s blog: TheOptionToSell.com Chad Carson’s articles: How to Run the Numbers for Rental Properties How to Travel & Invest in Real Estate - 10 Essential Tools of the Trade Award Hacker

024 | FI180 | Make a U-Turn and Choose FI May 22, 2017

024 | Today we have Joel and Alexis from FI180.com on the podcast.

They changed their financial lives dramatically, going from spending over $100,000 per year to having an 85% savings rate and on the path to FI in just a few short years. In Today’s Podcast we cover: Joel and Alexis from FI180.com tell their story of how they went from spending over $100,000 per year to having an 85% savings rate FI can only be a few steps away and this story is the perfect example

They bought new cars, a new house and didn’t track their spending at all In 2014 Alexis was in a terrible car accident and that led to the awakening that changed their financial lives. They took the $10,000 they received from the car and invested it in Vanguard

The costs (financial and health) and opportunity costs of a long commute Every month they tried to make one change to improve their finances Their savings rate was only 7% at their lowest and last year it went up to 85% (since lowered to about 75%-80% to add happiness) Joel’s brother is also on a path to FI now and is “racing” them to FI It isn’t a race though – it’s about enjoying the journey and finding happiness

Their happiness has increased after finding this path to FI. “Happiness is the goal” “We were using our spending as a way to try to numb the effects of a workday” They have learned how to cook at home and save money and eat better.

Previously were going out to eat twice per day! Line items from their ‘Our Savings Snowball’ article on what they were previously spending and what they are spending now The awakening when they chose to pursue FI after the car accident in 2014 There are certain things that are in your control and others that aren’t.

Focus on what is in your control Hot Seat Questions Favorite blogs: Mr. Money Mustache and The Wealthy Accountant Favorite life hack: Alexis was not allowed to go shopping without a list and couldn’t buy anything not on the list.

As well as not using a shopping cart or basket Food shopping game called the “$3 rule” where they tried to see how many “luxury items” they had over $3 at Aldi each week How to save big at Aldi on your food bill

023R | Case Study | Part 3 | Paul May 19, 2017

023R | In today's Friday Roundup we discuss career hacking with ESI Money, Big ERN's analysis of Paul's case study, plus hear our answers to an interesting question posed by audience member Jason about the value of frugality.

In Today’s Podcast we cover: Friday Roundup after Episode 23 with ESI from ESI Money Looking at compound interest on the earnings side of a career instead of just on the savings side ESI is now an author on Business Insider. Our question of how he made that connection What jumped out to us from the episode with ESI? Starting at a higher salary, managing the boss, etc. Commonalities of career paths for people pursuing FI and for Second Generation FIRE? Options for seasonal work (such as tax preparation) while pursuing FI Managing the boss: Telling your boss you want to be a high performer and how to quantify it How this sets you up to ‘win’ either in this current job or to land a better job elsewhere The power of networking for Choose FI and our growth Personal relationships matter, even in a digital and connected world Itunes review about us “mainlining the secret truth of the universe”

Our definition of FI being 25x your annual expenses. There is also the conversation of ‘safe withdrawal rates’ Big ERN’s feedback on Paul’s case study and his in-depth analysis of Paul’s early retirement plan ERN’s calculations plus his look at the real-world implication of social security on Paul’s plan Paul’s response to our question about his $70,000 per year of expenses. A full $23,000 is based on travel they took last year With “slow travel” and intentionality they can reduce the cost of their travel while actually traveling more Excluding travel their post-FI expenses are actually only $37,000 Many expenses are reduced once you reach financial independence and Paul has actually identified many of those reductions Feedback from the community: Jason posed a question to us about what we’re “missing out on” by pursuing FI and if the finer things in life are something we should pursue Brad thinks that pursuing FI is a ‘superpower’ that enables him to live a life he enjoys. And if that means “sacrificing” BMWs and Maine Lobster to get there, it is a trade he’s more than willing to make If money is no longer an issue, what changes then? That is the real question Responses from the community on Jason’s question and how they would spend their money College hacking article coming from Edmund Tee on Choose FI Frugal wins of the week from the community Life hack from Steve on life insurance Itunes reviews and winners of The Simple Path to Wealth Links from the show: ESI Money ESI’s article on Business Insider: I retired at 52 with a $3 million net worth — here are the 10 worst money mistakes anyone can make Early Retirement Now

023 | Career Hacking with ESI Money May 15, 2017

023 | ESI from ESI Money is on the podcast today talking about Career Hacking and how you can set yourself up to earn millions more over a working career with seven simple steps. In Today's Podcast We Cover: ESI from ESIMoney.com is here to discuss ways you can increase your earnings through Career Hacking ESI retired at 52 and reaching “financial independence” in his early 40s. He lives in Colorado, which is where many FI bloggers live

Your career is a multi-million dollar asset and it is important to focus on maximizing your earnings There are steps you can take to increase your lifetime earnings while in the same job Start with a higher beginning pay and how to get there Start with a career that has a higher opening pay; negotiate your starting salary; increase your pay through education/degrees How we can use this knowledge and apply it to our kids for ‘second generation fire’

How to get higher than 3% raises per year and how that can lead to millions of dollars of extra income through a career Seven actionable steps to earn more money on yearly raises and grow your career

Step 1: Perform as well as possible in your job Sit down with your boss and discuss expectations and make them quantifiable Document your success and keep your boss informed, which helps “manage your boss”

Step 2: Be likeable or ‘more likeable’ People like to reward and promote people they like, so be nice and considerate

Step 3: Networking is essential You need to help others as much as possible so they will be willing to help you in the future ESI’s actionable tips on how to use LinkedIn to create and foster a network of valuable connections. How ESI reached out to his network when he was looking for a new job and he landed a job in Colorado through the network

Step 4: Be more attractive Dress a little bit nicer and pay a little more attention to your appearance; “date your career”

Step 5: Continue learning and developing your skills How Warren Buffett believes public speaking increases your career value 50% Scott Adams’ ‘talent stack’ to create a valuable set of skills for your life and career Trying to get better at life skills a little bit at a time every day

Step 6: Manage Yourself Life skills you need to navigate life and your company politics, etc. Create a system to getting things done in life for personal motivation and drive Find yourself a mentor to guide you How ESI uses a system he learned early on in his career to manage himself How Brad and ESI both use ToDoIst to manage their lives

Step 7: Market Yourself How you can get huge pay increases when you move to a new job and how to find new options Hot Seat

022R | Inhouse Expert May 12, 2017

022R | In today's Friday Roundup we discuss the True Cost of Car Ownership, how to maximize your travel rewards points plus a big announcement on a new in-house 'expert' for ChooseFI! In Today’s Podcast we cover: Episode review of our podcast Episode 22 on The True Cost of Car Ownership Your best-case scenario is buying a 5 to 10 year old gas sipping car Even a low cost car is going to cost you at least $2,000 per year Your fixed structural expenses move the needle significantly on your path to FI, and the car is the easiest one to change.

Comment from Matt on how he introduced this to his algebra class on why buying a new car is a bad decision and what it amounts to when compounded Second generation Fire: Starting out right and not buying an expensive car (plus house hacking) will set people up for Financial Independence by 35

Question on Saverocity about living close or far from work and how that impacts your path to Financial Independence Is bicycling a pillar of FI or is it unrealistic for the vast majority of people and might even turn people off from pursuing FI? In a post-FI lifestyle, does bicycling make more sense? Comment from the audience on Cargo Bikes Voicemail from Rebecca on what to do with her car situation Our thought is that it makes sense for Rebecca’s life and financial situation to move towards the Honda Fit Our final thought on cars: Don’t buy a new car; buy a used car and drive it into the ground Choose FI is bringing on in-house experts on real estate, taxes, business building and all things number crunching Alan’s brainstorming ideas for helping the community build businesses

Should building a side hustle be a Pillar of FI?

Travel Rewards question from Noah: Should he cash in his miles & points and invest them in VTSAX or save them for future travel? Brad’s advice is to save them for future value where the value can be 2x-4x or more How the Millionaire Educator takes his rewards points to invest in an ESA fund Travel rewards question from Satya on travel to India using Chase

Ultimate Rewards points Feedback from the audience: Kevin’s follow up to Friday Roundup 18. He spoke with his wife and she just wants to spend more time with him where she gets his full attention Human connection is the most important aspect of happiness FI in the news: Our upcoming guest ESI from ESI Money was featured on the Washington Post FI in the News: Article that Brittinni sent in about net worth being the key to wealth, not income Frugal Wins of the week from the audience Aaron’s feedback about the true cost of car ownership and he teased us with how he sells boats for a profit Final word on Jonathan’s pullups

022 | The True Cost of Car Ownership May 08, 2017

022 | Do you know what your car is actually costing you each year? What about over an investing lifetime? In this episode of the ChooseFI Radio Podcast we cover the True Cost of Car Ownership and you'll be absolutely amazed at the numbers.

In Today’s Podcast we cover: ChooseFI: The Ultimate Guide to the True Cost of Car Ownership Your car payment is a terrible way to spend your hard earned money

We’ll present two different perspectives: Brad will show the long-term compounded cost of buying/leasing new cars continually versus holding a car for 15 years while Jonathan is going to present the yearly cost of your car Brad wanted to see what it was costing someone to constantly “manage their car payments” at a set number forever by buying/leasing new cars

This example is too conservative so a FI person would actually save even more money! In Brad’s example the FI person is buying a new car every 15 years.

They have payments for the first 5 years and $0 car payments the final 10 years. Person B is constantly paying $300 per month. This is a 45 year study, so Person A bought 3 new cars in the 45 year period At the end of the 45 year period, Person A’s savings compounded to be worth $742,000 versus Person B who was constantly paying $300 per month.

Takeaways: Don’t buy new cars and continue to drive your car as long as possible with no car payment! Most people can’t truly afford an expensive car and house even on a large salary. This is a true key to FI Astounding that $300 per month for 30 out of 45 years are ending up with $742,000 while most people don’t have anywhere near that much money after a lifetime of working and “saving.”

That also shows how little money most people are saving Jonathan’s bad track record with buying cars in his life

The True Cost of Car Ownership Calculator Jonathan’s example for yearly car cost compared a new car for $30,000, a 5 year old car for $15,000, and a 10 year old car for $5,000

Went through yearly depreciation calculation for Jonathan’s three examples Went through a calculation of annual opportunity cost of the year-by-year amount lost at 8% annual return if you would have invested based on these 3 examples Calculation of maintenance, insurance, taxes, inspections, etc.

Also calculate the cost of gas each year depending on the type of car The 20 year difference from having a used car versus a new car is almost $250,000 Jonathan’s determination is you should buy a ‘gas sipper’ that’s at least 5 or 10 years old

021R | Case Study | Paul | Part 2 May 05, 2017

021R | In today's episode of the Friday Roundup we review our discussion of the Pillars of Financial Independence, take questions and comments from the community and go in-depth on Paul's live case study. In Today’s Podcast we cover: Review of Episode 21, the Pillars of Financial Independence What areas of financial independence did we leave out of the episode? Might have under-discussed savings rate as a pillar of FI Choose FI as one of the ‘5 people you spend the most time with’ The value of $100 savings per month after 20 years or 40 years Can Jonathan really do 50 pullups? Comment from the audience: Charlotte mentioned Geographic Arbitrage as a pillar of financial independence Comment from the audience: Mary suggests that taxes are the largest line item in your budget, not housing like we mentioned Comment from Frank: He thinks we can do an entire episode on how to educate your children on money Comment from Matt: The expense ratio on Vanguard’s VTSAX fund was just lowered to 0.04% FIRE in the News: Anti-frugal event that Isaac showed us and Financial Panther’s list of best new podcasts The value of travel rewards for people in the FI community Frugal wins of the week from the audience: Andrew starting his own Gracie Garage, Tom’s list of incredible life changes, Cassie’s reduction in car insurance, Neal maximizing gift cards that were lying around the house, Tanner saving on free and used items, Heidi cutting cable Live case study from Paul – his responses to our questions from last week’s episode Paul’s response to “how much do your expenses cost you each year” Paul’s response to the question, “do you want to quit your job?” Paul’s response to “what does your post-FI life really look like?” Brad’s thought that the pursuit of FI is not about money – it’s what you value in life and finding happiness both in the journey and post-FI Frank’s question to Paul about what they have planned for his daughter’s college education Will $43,000 of savings be enough to fully fund a four year college education? Thoughts on college education and the value of that education Question to Paul about what is psychologically holding him back Question to Paul about his plans to include Social Security into his FI plan Question to Paul about the breakdown of his investment accounts between different ‘buckets’ Paul’s plan for a Roth-IRA conversion ladder Paige’s comment about the ‘Age of 55’ rule for distributions from your 401k if you are 55 or older after your separation from service Our follow up questions for Paul based on his case study Itunes reviews and book giveaways Links from the show: Money Confident Kids article: Parents are likely to pass down good and bad financial habits to their kids Article from Isaac: Fyre Festival: When a $12,000 luxury festival in paradise turns into chaos Financial Panther article: 9 Best New Personal Finance Podcasts Seonwoo’s article about FAFSA: How a Millionaire Retiree Could Get as Much Aid for College as Someone Who’s Broke

021 | The Pillars of FI May 01, 2017

021 | In this episode of the Choose FI Radio Podcast we focus on the essential Pillars of Financial Independence including index investing, affordable housing, the psychology of FI, tax optimization and more.

In Today’s Podcast we cover: ChooseFI Episode 21: The Pillars of Financial Independence While we intend to focus on the roughly 10 pillars of FI, we assuredly have missed some so we hope the audience sends us the ones we’ve missed Low-cost index fund investing is the way to go with investing in the stock market over decades and the best way to grow your wealth We love Vanguard and VTSAX but Schwab and Fidelity have similar funds with similar expense ratios

Even the Mad Fientist realized that he couldn’t out-research the market and stuck with index funds while he pursued tax optimization strategies to grow his wealth even faster Another sub-pillar is to not try to time the stock market. You will screw it up since you need to be right on the buying and selling side Affordable housing as a pillar of Financial Independence, since this is the largest line item in your budget Even if you live in a high cost of living area, you can still pursue FI. You just might need to think a little bit differently

Sometimes pursuing FI requires tough decisions Car ownership as a pillar of Financial Independence We do not believe in buying new cars – let someone else pay for the depreciation the first few years Look for fuel efficient cars that are inexpensive to repair Your food budget as a pillar of Financial Independence

You should focus on $2 per person per meal as a guideline for home cooked dinners Most pillars of FI come down to thinking a little bit differently and being a little bit smarter Jonathan lost 25 pounds during his 3 month challenge to lose weight before his son’s birth Tax Optimization as a pillar of Financial Independence

Max out your tax-deferred accounts is the advice for the FI community since you theoretically can take it out without paying taxes on it if you use the strategies we’ve previously described Hacking your college education as a pillar of Financial Independence Ways to save a significant amount of money on a college education Travel Rewards maximization as a pillar of Financial Independence Use rewards points to help travel the world for nearly free.

You must pay your cards off on time and in full every single month Cutting the cord on your cable subscription as a pillar of Financial Independence Intentionality and how you choose to spend your money is important when assessing FI Reducing your cell phone bill as a pillar of Financial Independence Making a small ‘hard choice’ to save big money and have an ‘easy life’

The 4% Safe Withdrawal Rate explained Philosophy as a pillar of Financial Independence Unconventional thinking – looking at a problem differently that can help you live the same lifestyle as everyone else while getting wealthy instead of living paycheck-to-paycheck Maximizing the rules: Knowing the rules of the game and planning in advance Planning and creating a framework for life makes everything easier Patience is what makes FI “incredibly difficult.” This is the simplest concept but it takes many years For every $100 you can cut from your budget each month, if you invest that money and earn an 8% return over 20 years it is worth $60,000.

Understand the math behind the decisions and know that even small decisions can earn you large results

020R | Introducing Our First CrowdSourced FI Plan & Case Study | Part 1 Apr 28, 2017

020R | In today's Friday Roundup we introduce our first crowd sourced case study from a listener and we have a challenge to you: Implement one life hack this week that will make your life easier and less stressful and send it to us at feedback@choosefi.com (or leave a voicemail on our homepage!) and we'll read it on next week's Friday roundup. In Today’s Podcast we cover: Our first Friday roundup after a non-guest episode which leaves lots of time for audience input, questions and voicemails We want the podcast to be ‘By FIRE for FIRE’ and make it truly crowdsourced Jonathan and Brad are living a normal middle class lifestyle, just smarter. We aren’t doing anything especially different – just optimizing Brad and his wife Laura had a conversation about what makes their spending different than their friends and neighbors While the fixed expenses are essential (home, cars, cell phones, cable, etc.) the discretionary expenses also make the difference between a non-FI mindset and one pursuing FI How Brad’s kids are not constantly ‘wanting’ new toys, to redecorate their rooms, etc. It wasn’t intentional on the parent’s part, so the thought is that they saw the lack of wanting modeled in the house Jonathan’s frugal win of the week: He superglued a broken lamp in his house and it is still working 1.5 years later! Upgrading your house not only wastes money, but it wastes a ton of valuable time searching for these items and getting it “perfect” Stressed lives and an ask of the audience: Implement one life hack this week that will make your life easier and let us know about it! It’s so easy to get bogged down in the details of life, business, etc. that you miss the truly essential items that could move the needle and make a difference Brad focuses on things he can get better at over a period of many years such as Brazilian jiu-jitsu and stretching/mobility “You are going to be the average of the 5 people you spend the most time with” and discussion surrounding it Feedback from Deidra: She recommended SBLI for life insurance after hearing our Episode 20 show Brad had a conversation with a friend of his this past weekend on FI and on his plan to retire in 16 years with a pension, fully paid off rental homes and his primary residence paid off, plus 401k and 457 balances Voicemail from Harrison: Info on an alternative to Vanguard and VTSAX. He recommends SWTSX which has a lower expense ratio and no minimum balance Voicemail from Paul: Part 1 of 3 as a live case study with his life Our questions for Paul for Part 2 of the case study Voicemail from Isaac with a question on travel rewards and how to deal with Chase’s 5/24 strategy Feedback from Nia – international perspective and info for UK listeners Itunes reviews and the 2 winners of The Simple Path to Wealth Where ChooseFI is going: Ideas from the audience and future episodes Links from the show: Todoist SBLI life insurance Mutual Assurance Society of Virginia UK Monevator Blog - How to Invest Books Mentioned in the Show: The One Thing by Gary Keller The Simple Path to Wealth by JL Collins

020 | Entry Level Middle Class Lifestyle | Intro to Insurance Apr 24, 2017

020 | The Entry Level Middle Class Lifestyle is a tool that you can use to supercharge your path to FI. Jonathan and Brad go through their expenses one line item at a time. Then they start the conversation about a FI approach to insurance, with an emphasis on life insurance

In Today’s Podcast we cover: What Jonathan and Brad’s lifestyle and budget look like. We go in-depth into our actual spending and budget line items What have we talked about previously? How to crush your food budget, how to get fit while being frugal, basics of investing, how to save 75% of your income, tax loss and tax gain harvesting, travel rewards and the unfair advantage for teachers. Housing prices and mortgages for Brad and Jonathan

Jonathan was looking for an older neighborhood with a generational shift going on with kids coming in Brad’s net cost per month is under $800 per month on his house in a great school district in the Richmond-metro area

How to maximize insurance: be sure to shop around and get quotes and don’t be complacent. Also determine realistically how much coverage you need and don’t just follow the advice of your agent. Increase your deductible as much as possible to save money.

Life insurance: Get term life insurance until you don’t need the insurance any longer (when you’re at Financial Independence). The insurance agent will always attempt you to buy whole life insurance; in the vast majority of cases term life is the best possible option. Once you’re at FI, you can self-insure since you don’t need the lump sum Car expenses: Jonathan mentioned the forthcoming ‘true cost of car ownership’ article Jonathan does currently have a car payment

Brad has not had a car payment on either car for well over 5 years Cell phones: Jonathan has Project FI and Brad has Republic Wireless By being smart about your cell phone you should easily be able to save $100 per month “Easy choices, hard life; hard choices, easy life” Cable bills and internet packages from Comcast and Verizon

Jonathan buys an internet-only package from Verizon What happens when you give up screen time entirely? Talk, play board games, etc. Gym memberships: Brad pays $20 a month for Crunch fitness. Jonathan does not have a membership any longer.

He paid $1,000 to build a top-notch home gym for a one-time cost Brad now does Brazilian Jiu Jitsu through Gracie University and the free Gracie Garages Take a step back and see what you can work on long-term to get better at life?

Keep track of your food and alcohol budget and it will help you cut down Where do we spend that might be “frivolous” but where we get a lot of value? Financial independence is not deprivation. It is about being intentional

019R | Index Investing | How to buy VTSAX Apr 21, 2017

019R | In our Friday roundup Jonathan and Brad discuss the highlights and takeaways from the Monday episode with JL Collins. Then the podcast is opened up and crowd sourced to the community. Find out the specific travel reward perks that are available for active duty military and how to get started with VTSAX if you don't have $10,000 to invest The Friday Roundup #8: Review of podcast with Jim Collins Jonathan’s baby was born! And he’s here recording the Friday Roundup two days later 2nd Generation FIRE and the impact on Jonathan with his new son The value of starting a child on the path to FIRE from the very beginning Index investing as one of the main ‘pillars of Financial Independence’ Jim’s Stock Series changed the trajectory of Brad’s investing life and will benefit him to the tune of millions of dollars in his lifetime There are no investing gurus out there who will help you outperform the market over decades when including fees into the calculation Jim is such a fantastic storyteller Fidelity study of the classes of investors who do the best: dead people and those who forgot they had accounts The best thing that can happen to someone who is young is for the market to drop while they are pumping money into the market. Index investing: Losers can only go down 100%, but winners can go up indefinitely. The index is self-cleansing Why stock picking contests promote the wrong behavior The stock market always go up over decades. You only lose money in the market when you try to “dance in and out of the market” Warren Buffett will invest in a Vanguard S&P 500 index fund Vanguard is growing faster than all of its 4,000 competitors combined (to the tune of 8.5x) Feedback Stitcher reviews – thank you for leaving them and letting us know they exist! Sharing ChooseFI with friends and family Feedback from Steve and Amy on the action they’ve taken since first listening to ChooseFI How police officers and firefighters can access their 401K’s without penalty Travel Rewards and Investing Questions Travel rewards question about travel in Europe for hotels and Ryanair from Anthony and Abby Question from Alyssa about different retirement account options and different investing options and how to get started for younger listeners who don’t have $10,000 to invest in VTSAX in one lump sum The standard advice doesn’t apply for people on the path to FI, so they should max out traditional IRAs and 401k instead of Roth-IRAs Links from the show: The Stock Series at JLCollinsNH.com ChooseFI podcast with JL Collins Vanguard is Growing Faster than Everyone Else Combined at the NY Times Neal Landfield article HR2146 how cops, firefighters and EMS can access their 401Ks without the 10% penalty Friday Roundup 7 talk about hotel redemption options including Hyatt and Starwood AwardMapper to see reward hotel options Award Wallet to track rewards programs for free Books Mentioned in the Show: The Simple Path to Wealth by JL Collins

019 | JL Collins | The Stock Series | Part 1 Apr 17, 2017

019 | In Today’s Podcast JL collins from JLcollinsnh.com joins Jonathan & Brad on the podcast to bring the Stock Series to life. The Power of Index Investing is one of life's greatest secrets & JL Collins is the ultimate travel guide. This multi part series turns the stock series into an interactive audio companion and this first part is sure to compel you to stick around for each additional entry

The Stock Series | Part 1 Our guest: Jim Collins from JLCollinsNH.com

The Stock Series Part 1: “There’s a Major Market Crash Coming!!!! And Dr. Lo Can’t Save You” Lo claimed that “buy and hold investing doesn’t work anymore” and that raised Jim’s ire quite a bit which led to the Stock Series

An overview of the Stock Series and how Jim would explain it Jim’s eight rules that you need to understand in order to succeed with long-term stock market investing

“The Market Always Goes Up” which is very counterintuitive to people, but over the long-term it invariably does The market is always going to stumble or have corrections and you can’t predict when they are going to happen and you have to accept them. Nobody can possibly predict or time the market

The stock series came out of a series of letters to his daughters on financial education When it comes to investing (once you get the basics down correct) the less you pay attention, the better off you’ll be. Fidelity study of the best classes of investors based on performers: Dead people and those who lost their accounts!

You can’t panic when the stock market goes down significantly. You must “know yourself.” If the market is already down 50% would you still be able to hold the course and not sell if you still thought it was going to do down an additional 2/3’s? Quotes from Warren Buffett about not being fearful and buying when others are selling

For a new investor who is investing significant money each month, the best thing that can happen is a huge plunge in the market because they get to purchase new shares on a huge sale In a wealth-preservation state, you should consider buying a percentage of your portfolio in bonds Jim has a 25% bond allocation, which is actually considered very aggressive for his age Warren Buffett quotes about investing in low-cost mutual funds from Vanguard

How does index investing deal with winners and losers in the index? Downside of each company is limited to them losing 100%, but the upside is unlimited The Dow Jones is not the “market.” Just an index with 30 large companies

Stock picking contests in schools in the US are fundamentally looking at it the wrong way and are incentivizing short-term thinking Hot Seat Questions Favorite blogs: Mad Fientist, Go Curry Cracker, Millenial Revolution, The Wealthy Accountant Favorite life hack: Public Libraries and geographic arbitrage Biggest financial mistake/advice you’d give your younger self: Understand the power and value of index fund investing much earlier

018R | Capital Gains Harvesting | Never Pay Taxes Again | Part 2 Apr 14, 2017

018R | In Today’s Podcast we cover how to harvest long term capital gains tax free. Friday Roundup 7 Review of Monday’s episode with Jeremy from Go Curry Cracker Brad and his family just visited Washington DC for the weekend and used Chase Ultimate Rewards points to stay at the Hyatt Place National Mall Brad’s trip to Walt Disney World with his family, parents and in-laws Jonathan now understands harvesting capital gains and losses after the episode with Jeremy Unconventional choices: Jeremy and Winnie haggling at the farmer’s market near the close of business. Brad going to Disney World before Molly turned 3 so they could get her park ticket for free. Jeremy taking his son on a flight the day before he turned 2 so he could be a lap child on a business class flight Quick hit takeaways from the Jeremy episode: He told his mom he had a ’60 year emergency fund’; he opened a Roth-IRA for his son for earned income on the website. The power of having money and financial independence enabled Jeremy to walk out of his job instead of doing something that he didn’t want to do. Brad’s story of when he left his job and taking the power back from corporate America Investing philosophy and the importance of taking your brain out of financial decisions His financial freedom clock started when he ‘got to broke’ and paid off his student loans Capital Gains Harvesting | Avoiding long term capital gains tax Case study: Married couple with one child. 30 years old. $120,000 of income and maxing their 401k ($36k in total) Qualified dividends and long-term capital gains are taxed at 0% if you’re in the 10% or 15% marginal tax bracket Understanding how marginal tax rates work for income taxes The definition of FI: having 25 times your annual expenses saved up and invested The long term capital gains tax The long term capital gains tax defined & explained How the Roth-IRA conversion ladder would work for this couple and how they can harvest long term capital gains tax free by using advanced FI techniques Itunes reviews and questions from the community Reader case study from Kevin: How to work with a spouse from an ultra-wealthy lifestyle and bring them over to the FI lifestyle Find what makes you happy in life and what you value and spend accordingly Kevin’s scenario is almost exactly like our case study on this episode Travel Rewards question: How to maximize hotel points with Hyatt and Starwood hotels What’s coming up on ChooseFI: JL Collins talks about the Stock Series, the Stapes of FI, JD Roth and Kristy from Millennial Revolution, the true cost of car ownership Links from the show: Podcast episode with Jeremy from Go Curry Cracker Hyatt Place Washington DC National Mall How to take a nearly free trip to Disney World with rewards points from Richmond Savers Personal Capital signup link – free net worth and financial tracker JL Collins’ Stock Series Podcast episode: Travel Rewards points Hyatt House Emeryville, CA Recommended Content Introduction to Free Money Part 1 of the Never Pay Taxes Again series

018 | Go Curry Cracker | Capital Gains, Losses and The Roth Conversion Ladder Apr 10, 2017

018 | In Today’s Podcast we cover: Our guest: Jeremey from Go Curry Cracker Jeremy and Winnie are living the geo-arbitrage life: currently in Taipei, Taiwan and then on to a four month trip to Europe They are using travel rewards points to get nearly free business class flights from Taipei to Europe. Using Alaska Airlines miles on Cathay Pacific they got nearly 20 cents per point in value! “Retiring in your 30s is simple but not necessarily easy” The biggest contributing factor is saving a high percentage of your income It’s easier to save a high percentage of your income when you have a larger income Make unconventional choices to save a high percentage 2nd Generation FIRE and how college costs can be lowered Jeremy had $40,000 in debt when he came out of college They have already opened a Roth-IRA for their son and used the income he earned from ‘modeling services’ for Go Curry Cracker He used the 80/20 rule to look at where 80% of their spending was going Sold his car and rode a bicycle Winnie made it so her cooking was the best food in town and they never wanted to go out to eat They spend approximately $2 per person per meal for delicious gourmet home cooked meals Most of their entertainment was community based with friends where they weren’t spending money How did he get started on his FI journey? He took the first 6 years to pay down his $40,000 in debt. Didn’t take vacation, worked overtime to earn more money. On his first vacation he realized he didn’t want to work forever and started formulating his plan He set a 10 year plan and retired in 10 years plus 1 day from when he started! What was it like when he actually quit his job? The power of FU money and not needing to work plus how much more power it gives you while you are actually working How is he investing his money? 100% of his money is in 2 index funds Wait for compound interest to take hold so you can benefit over decades Unpacking his article ‘Never Pay Taxes Again’ Harvesting Capital Gains and how it enables you to get up to $90,000 in tax free income each year and increase the basis in those funds so you are never paying taxes on the gains Wash sale rules aren’t relevant to harvesting capital gains, only capital losses Harvesting capital gains actually makes it easier to harvest capital losses in the future They also do the Roth-IRA conversion ladder to effectively make their regular 401k tax free Harvesting capital losses to offset other income Avoiding the wash sale rules: Need to buy back another fund (example: Sell Total Stock Market Index fund and buy S&P 500 Index fund) Hot Seat questions Favorite blog: JLCollinsNH.com Favorite life hack: credit card rewards points Links from the show: Go Curry Cracker Frugalwoods Podcast Episode: Introduction to Maximizing Travel Rewards points Jeremy’s guest post on Budgets are Sexy Stock Series on JLCollinsNH.com Mad Fientist Never Pay Taxes Again on Go Curry Cracker Favorite articles: How to Give Like a Billionaire on JLCollinsNH.com They Will Kill You for Your Shoes! on Go Curry Cracker Favorite purchase: Iphone 7 Plus Google Project FI Go Curry Cracker on: Facebook Twitter Instagram Books Mentioned in the Show: The New Artisan Bread in Five Minutes a Day

017R | The Roth IRA Conversion Ladder | A Case Study Apr 07, 2017

017R | In Today’s Podcast we cover: Friday Roundup # 6 This is our 23rd episode and providing a home for the FIRE community Thank you for our 50th review on Itunes (from Chad Carson!) – we plan to implement the voicemail feature on the website so we can use your input on the show Episode with Brandon from the Mad Fientist This podcast humanized Brandon and you got to hear his story “Early retirees are such a different breed…I’m looking at this through the very focused lens of early retirement.” The built-in benefits of financial independence aside from just the dollars and cents: College, health care, taxes The Roth IRA Conversion Ladder The Roth IRA conversion ladder is the key to early retirement and accessing your 401k/retirement funds and pay little to no taxes on the money It was amazing how open and honest Brandon was: depression, ‘quarter-life crisis’, deprivation period Brad went to a retreat over the past weekend for “designing the life you want to live into” Quote from Keith: “I never dreamed past here.” Dream bigger and find what brings you joy and happiness in life Money is not the end goal. It is a tool to let you live a better life How Brandon tested the upper limits on their spending and how it impacted their happiness (and only a couple of thousand dollars per year) Brad thinking differently: How could he spend a little more money to bring more joy to his life Roth IRA conversion ladder step-by-step scenario: 20 year old guy earns $60,000 per year, has $30,000 of expenses per year and is on a 20 year plan for FI. How does he take advantage of the Roth IRA conversion ladder to pay little to no tax and still fund his early retirement. The Key for the Roth IRA Conversion is to max out the 401K Itunes reviews – thanks to the audience! Question from the audience: Heather about what to do with her 401k after leaving her job. Should she leave it in her company’s 401k or roll it out to Vanguard and her own IRA? Question from Bryan: How the 4% rule works on pulling out money from Roth, 401k, IRA, etc. and how to manage your tax liability in early retirement When you reach FI, you aren’t going to sit back and do nothing when “retired” Where ChooseFI is going: college hacking from Edmund Tee and Seonwoo Lee Tax hack from an audience member: if you can’t itemize every year, consider putting all deductions (donations, state taxes, etc.) into every other tax year so you can itemize every other year and in the off year you get the standard deduction Frugal hack of the week: Jonathan created a standing desk for his treadmill For More Tax Related Content Tax Optimization for FI Links from the show: Mad Fientist Dominick Quartuccio – Take Command Subscribe to Chad Carson’s email list Dual Enrollment article on college hacking Oristand standing desk

017 | Mad Fientist an Origin Story Apr 03, 2017

017 | In Today’s Podcast we cover: Today’s guest: Brandon from MadFientist.com and the origin story of the Mad Fientist How did the Mad Fientist website come about? He first stumbled on the Early Retirement Extreme website He thought there’d be investing strategies to get him to financial independence more quickly, but he realized index funds were the best way to go about it Then he stumbled upon tax optimization and tax avoidance strategies Finding Get Rich Slowly and other personal finance blogs got him interested, but he looked at it through the eyes of an early retiree and realized the standard advice didn’t necessarily apply “Early retirees are such a different breed” and optimizations can be had when looking at the problems differently for FIRE He took a core tax strategy and pivoted it to the best way to optimize for early retirees

He uses his audience feedback to help come up with ideas for new posts or as ways to update and augment posts The Roth IRA conversion ladder changed the entire game for him and made him max out as many pre-tax accounts as possible How to get retirement money out earlier than the traditional 59.5 age without a penalty? Building a 5-year conversion ladder with traditional savings to cut your effective tax rate down to almost 0% on your traditional IRA and 401k Brandon’s college choice and how it impacted his financial life with minimal student loan debt Brandon took a software developer’s position at an Ivy League University and worked towards a free Ivy League master’s degree

Did Brandon max out his 401k his very first year? What’s the most expensive car Brandon every bought? He leased a Toyota RAV4 but other than that every car he has ever owned is at least 10 years old What financial mistakes has Brandon made or where does he not follow his own advice?

Timing the market and sitting with too much cash Take your brain out of your investing decisions once your plan is set What type of investing does Brandon do? All index funds from Vanguard and cash How has Brandon evolved psychologically as he has approached Financial Independence? Reaching your FI number doesn’t by definition make you happier. You have to find your passion in life They actually loosened up their spending for a year to enjoy life as much as possible.

Total tally: $35,000 of yearly spending. As compared to their normal $30,000 - $33,000 spending. An insignificant increase in money spent for such a large increase in satisfaction What is the most surprisingly positive aspect of post-FI life?

What does his life look like 5 years from now/what does he want to do with his life? Hot Seat Questions Favorite life hack: Find out what makes you happy Advice to your younger self: Just get started today

016R | Friends of the Library Mar 31, 2017

016R | In Today’s Podcast we cover: Friday Roundup #5 Recap of house hacking episode with Chad Carson from CoachCarson.com Real estate investing is one of the pillars of Financial Independence ‘Keep it super simple and try to do the fundamentals well’ quote by Chad Chad put in the extra effort to walk neighborhoods on Saturday mornings to learn about real estate House hacking is essential knowledge for someone getting started with FI The main levers to pull to get on the path to financial independence Housing is the biggest line item in most budgets and this can be a game changer House hacking for ‘2nd generation FIRE’ Brad lived at home after college graduation and saved many thousands of dollars instead of renting an apartment If you have a solid income and you aren’t saving money then you aren’t a “success” Moving forward ChooseFI will bring in other real estate mentors to help educate all of us Itunes reviews Feedback from Libertarian Investments about our appearance on Radical Personal Finance on earning more than $100,000 income and how it makes paying down debt much easier Can you earn $100,000 a year without going to college? That wasn’t what we were arguing on Radical Personal Finance Unconventional choices: Brad and his wife Laura decided to pick up their entire lives and move 400 miles south to Richmond, VA. This was a long-term play to afford the FI lifestyle on one income. Message from Ken on the benefits of libraries and the assortment of ways you can get value out of your local library. He also thought the 10 year timeline to reach FI was unrealistic We agreed and thought 10-15 years is much more realistic. And even if people take 20-25 years it is still a huge win over where they would have been otherwise Debt-free isn’t the goal – it is financial independence Comment from Tallis on how the podcast has been “life changing” for them. They already put a plan on paper for early retirement! Feedback from Isaac that the Roth IRA is the “worst” investment vehicle and we’re going to unpack this in the future Jonah said dollar cost averaging provides far below average market return. While we agree mathematically, it is still difficult psychologically for people to dump a bunch of money into the market at one time Travel rewards question from Ben on the timing of the Southwest Companion Pass Travel rewards question about hotel rewards and how to maximize Hyatt and Starwood Episode 17 coming up: Behind the scenes look at the Mad Fientist Links from the show: Podcast episode: Coach Carson Coach Carson’s website Sign up for Chad's email list Article about Chad as a Clemson Tiger football player Chad’s first house hack & house hacking guide ChooseFI podcast episode on travel rewards

016 | House Hacking With Coach Carson Mar 27, 2017

016 | In Today’s Podcast we cover: Real estate investing and house hacking with Chad “Coach” Carson. On the path to financial independence, how much of your own budget is going towards housing? After Chad graduated college at Clemson, he got started with real estate investing in his college town. How financial independence and real estate investing have allowed Chad to move his family to Ecuador for about 1.5 years. When they moved to Ecuador they sold most of their possessions and rented out their house for 2 years. When Chad graduated college he kept his expenses extremely low and actually moved into his business partner’s spare bedroom to help save money. This led to his concept of “house hacking” as a way to keep housing expenses down to nearly zero House hacking: buy a multi-family rental unit and live in one unit while you rent out the rest and have them essentially pay for your house payment entirely Easy to become rich saving the money you’d otherwise be paying for your house and car payments Keep it simple and pay attention to the fundamentals with your financial life How do you get started with real estate? Where do you find a multi-family unit to buy? What to look for: neighborhoods with charm, safe, public transportation nearby Avoid cookie-cutter neighborhoods on the outskirts of town with new construction Chad recommends hiring a real estate agent at the beginning. Have them run searches based on your desired neighborhoods and automatically send you new listings. It is essential to walk the neighborhoods and talk to people to gather intel. Tip: walk with your kids to seem less intimidating and go on a Saturday morning when they are out It’s important to think differently and take that extra step to find great deals. Have to reach out to people and get outside your comfort zone Real estate: The numbers crunching has to come into play at some point. Put together a profile of what makes a good deal upfront Follow the ‘1% rule’: You are looking for the monthly rent to be 1% of the purchase price ($1,000 per month rent = $100,000 house price) Chad was able to pull his equity out and invest in another deal Small investors need to avoid 5 or more unit complex in order to get the most favorable owner-occupied financing Once you have an owner-occupied financing, you can move out and keep the favorable financing rates and rent all the units How to get started finding financing if you have no money saved and no contacts? Options: FHA 203k Loan in order to remodel and do a house hack or Fannie Mae Remodeling loan Building relationships with local real estate investors and private lenders Real estate debt snowball to fully own these properties as a path to wealth and financial independence Chad’s personal strategy: 15% of his assets are currently in index funds with a goal of up to 33% and the vast majority of the rest is in real estate, cash and financing/note investing Chad and his business partner have approximately 90 rental units currently Chad is not interested in growing as large as possible – he wants to find a balance in life and keep it as simple as possible to meet his financial independence goal Hot Seat Questions Favorite life hack: Planning and actually writing it out. Weekly, monthly, yearly Biggest mistake: buying into other people’s goals and getting sloppy with purchasing a lot of properties at the height of the 2007 bubble Links from the show: CoachCarson.com Root of Good House Hacking Guide - How to "Hack" Your Housing, Live For Free, & Start Investing in Real Estate How to Retire Rich With Ugly Houses and Embarrassing Old Cars Stock Series at JLCollinsNH.com The Debt Snowball Plan - How to Get Free & Clear Rental Properties The All-Cash Plan - How to Get Free & Clear Rental Properties How Many Rentals Do I Need to Retire FHA 203k Loan information

015R |The 'Joneses' Are Bankrupt Mar 24, 2017

Keeping up with the Joneses' will cost you

1. Allocation when Investing in a Bubble? Kyith points out that allocation matters as the Early Retiree approaches their FI date 2.Paul wants to know where he should put his emergency fund 3. Should Brad Pay off His Mortgage? Kevin challenges Brad & Jonathan on whether they should pay off their mortgage using the Dave Ramsey litmus test 4. Matt would like to see ChooseFI tackle Effective Altruism 7. Sharing Resources

Links Mentioned in Show

https://www.choosefi.com/start

https://www.choosefi.com/CIT

https://www.choosefi.com/Disney

https://www.choosefi.com/book

Travel Rewards | Southwest companion pass and how to travel to Disney

015 | Root of Good | 2nd Generation FIRE and College Mar 20, 2017

015 | In Today’s Podcast we cover: Our guest: Justin from Root of Good Justin had access to 401k and the 457 retirement plans 457 plan is an extremely valuable took for early retirement as there is no 10% early withdrawal penalty

Justin’s early retirement journey: Retirement at 33 Saved over 60% of his income to help retire early Justin has a wife and 3 kids and was still able to retire early What does a day in the life look like for Justin and the Root of Good family? “Optimal spouse selection” is important on the path to early retirement.

You both need to align and be compatible with the savings mindset Being early retired gives you the flexibility to spend your time as you choose and live like a billionaire from a prior era Justin followed the Early Retirement Forums to model the behavior as he was learning about the path to financial independence Does it really cost $300,000 to raise a child?

They spend $29,000 to $34,000 per year including luxurious vacations Quote of the day: “If you want to be average, it’s going to cost 300 grand” How they save money on cruises for the family: Go in the off season, look for deals online and book through a shopping portal like Ebates, don’t book excursions through the cruise line How does early retirement impact your children?

Great lesson to teach your kids: I worked really hard for 10 years, saved money, and now can enjoy life for the next 50 For people who save money, it isn’t a stressor, it’s a tool to live a better life You have so much extra time to spend with your children when you are early retired Significant tax savings from having children 2nd Generation FIRE: How to pass this concept on to our children and to teach them to get started even before we did

Planning for children’s college while early retired How to get college credit while still in high school (AP classes, classes from local university, etc.) Once you get to college, how do you pay for it? How to hack the FAFSA: they don’t look at retirement savings or home equity for calculation Don’t pay sticker price for college! Financial aid and scholarships are plentiful Some elite schools offer full scholarships to “lower income” people of which early retirees may qualify Will college still be relevant in 10 years and how will you pay for it?

014R | What's the Right Way to Calculate Net Worth? Mar 17, 2017

Control your Tax Rate by understanding how our marginal brackets work and eliminating consumer debt and taking advantage of tax deferred accounts Get Started on Path to FI https://www.choosefi.com/start Free Travel Course https://www.choosefi.com/travel For Net worth Tracker https://www.choosefi.com/pc

Community Questions 1. Brian has a question about separation of service 2. Jason questions whether to use Vanguard vs Schwab 3. Kristen wants to know why she was denied for a premium credit card despite having 700+ credit score 4. Tyler shares how he used geoarbitrage to supercharge his path to FI

Jonathan and Brad introduce a new segment with the FWOTW of the week (Frugal Win Of The Week)

014 | The Phases of FI with 1500 days Mar 13, 2017

014 | The Phases of FI with 1500 days (Mr 1500) Our Guest: Carl from 1500 Days The Phases of Financial Independence Close-knit community at Fincon and FI generally, Its amazing how much you have in common with somebody when you share a philosophy about money

What is your philosophy about money? It isn’t about money – it’s a tool to a better life The goal of his site 1500 Days to freedom Their real estate investing experience Buying a McMansion and selling it within 2 weeks How one bad day at work led him to MMM and the concept of early retirement

The importance of health Surrounding yourself with the best possible people Live in a place that has outdoor pursuits, the best possible library and a strong community

Raise your children to be good, hardworking people and raise your knowledge every day Explore the world and give back by volunteering Time is the most essential resource, and it's slipping away from you unless you plan for it Develop passions to design the life you want to live with the time available.

Without passions, FI would be a prison The Four Phases of FI Financial independence doesn’t mean not earning money. It means following your passions Hot Seat Questions

013R | Control Your Tax Rate Mar 10, 2017

Control your Tax Rate by understanding how our marginal brackets work and eliminating consumer debt and taking advantage of tax deferred accounts

Get Started on Path to FI https://www.choosefi.com/start Free Travel Course https://www.choosefi.com/travel For Net worth Tracker https://www.choosefi.com/pc

Community Questions 1. Brian has a question about separation of service 2. Jason questions whether to use Vanguard vs Schwab 3. Kristen wants to know why she was denied for a premium credit card despite having 700+ credit score 4. Tyler shares how he used geoarbitrage to supercharge his path to FI

Jonathan and Brad introduce a new segment with the FWOTW of the week (Frugal Win Of The Week)

013 | The Unfair (FI) Advantage of Teachers | 457b Mar 06, 2017

013 | Our guest: Millionaire Educator shows us how to invest your money. He shows how teachers, firefighters, police officers and public employees can leverage the power of pretax savings to supercharge their retirement , and become millionaires.

Take this information to learn how to invest your money and retires decades before your peers Ed’s journey from a college basketball player to a Spanish teacher Graduate school led to $45,000 total debt at age 33 Taught ESL in Saudia Arabia and paid off debt Returned to the US from Saudia Arabia with a $110,000 net worth Had to figure out the concept of FIRE before it even existed Taught in public school in Georgia for the next 7 years

The two retirement plans available to public sector employees: 403(b) and 457 Teachers can fully fund both of these accounts ($18,000 to each in current year) Putting away this money helps dramatically decrease your taxes

In 2007 his net worth was $400,000 2009: Next phase of their retirement journey 403(b) fees are significant, so it was to their benefit to move jobs to roll their 403(b) accounts to a lower fee (‘separation of service’ clause) 457b is a special account as it doesn’t have the 10% penalty for pre-59.5 age withdrawals

Phase 3 of retirement plan: Starting in 2014 they worked for 2 years and saved $238,000 What they are living on: a) $90,000 from 457s b) 72-T withdrawals from IRAs How to control your tax bracket for big savings (potentially down to $0)

Debt avoidance: debt is paid with after-tax dollars Geo-arbitrage and living abroad or even just a lower cost state 457b account is an emergency fund that is pre-tax dollars

How Brad and Ed are not “perfect” with their investing Pay increases for teachers when attaining new degrees. Raises that last a lifetime Earning extra money for coaching and extended day teaching to max out retirement accounts How they saved over $100,000 in a year towards retirement accounts

012R | Introducing the Friday Roundup Mar 03, 2017

The Friday Roundup acts as a way to connect the FI community bringing in your feedback questions, and corrections. https://www.choosefi.com/Start

Text choosefi to 44222 for FI made simple Ebook

On Todays episode Feedback on the Frugalwoods episode Email from Isaac: How have others responded to you being “openly FIRE” in your real life? Email from Evan: Has some tax hacks he wants to pass along Questions about travel rewards – do Chase points expire and how to transfer? Update on Jonathan’s goal to lose 30 points by April 22nd Jonathan and Brad's Favorite networth tool

FI made Simple Ebook Travel Course Personal Capital Review

012 | Living Frugal Frugalwoods | Save 75% Of Your Take Home Pay Feb 27, 2017

012 | Living Frugal is a Powerful FI Tool Liz from Frugalwoods coaches us through the ultimate guide to frugal living The benefits of minimalism and living frugal Frugalwoods family saving 70%+ of their income Their conscious decision in March 2014 to pursue financial independence

Entirely possible to pursue living frugal anywhere including large metro cities. In fact these cities may have built in advantages like transportation What is the difference between someone who saves 70%+ and everyone else?

First ask ‘where you want to be’ Not a sacrifice but a reorientation of how you spend and your priorities The benefits of living frugal: happiness & joy How they actually moved forward in March 2014 with their newly ultra-frugal lifestyle

How the Frugalwoods family saves on food & groceries Does it make sense to pay off your mortgage? How they spend nearly $0 on entertainment Bring your own food to work every day and save $20+ per day No car payments & buying used cars

Buying nearly everything used No impulse buying – wait 72 hours after you want to make a purchase Embracing imperfection: why & how they cut each other’s hair living frugal can simplify and streamline life

The Frugalwoods homestead in Vermont Educating yourself when making a major purchase You don’t need to spend money to be happy: frugal substitutions Hot Seat Questions Favorite Life Hack Hacking the soda stream

011 | Welcome To The Hot seat Feb 20, 2017

011 | In Today’s Podcast we cover: Future guests and how our interviews will be different than other podcasts

Introduction to the “hot seat”

What’s your favorite blog that you’re currently reading?
What is your favorite article of all time
Favorite Life Hack Biggest financial mistake
What advice would you give to your younger self?

010 | Skinny Waist, Fat Wallet (How to Lose 30 lbs in 3 months) Feb 13, 2017

010 | In Today’s Podcast we cover: Fitness and nutrition from a financial independence mindset Jonathan’s quest to lose 30 pounds in the 3 months leading up to his son’s birth JD Roth’s talk at the Camp Mustache event to create a personal mission statement Jonathan’s post-it note goals for his next 3 months of losing weight Be intentional about your goals Eating to live, not living to eat

The dangers of carbs and processed sugar Frugal, ripped, lean and wealthy

Set a goal and find some accountability partners
Brad’s goals: 15 pullups and a six-minute mile
Go to sleep on an empty stomach: benefits and discussion
Drink more water: ½ to 1 gallon per day How to eat a better breakfast and why to avoid sugar and carbs 24 hour fast one day per week
in Jonathan’s plan Bulletproof Coffee, intermittent fasting and ketosis Prepare your meals ahead of time
Avoid a deprivation mindset
Movement is essential Take breaks during the workday to walk Interval training: HIIT on treadmill
The benefits of lifting weights
Building exercise into your day
Take these actionable tips and implement them

009 | Travel Rewards: How To Travel The World For Free (The Easy Way) Feb 06, 2017

009 | In Today’s Podcast we cover: Why Jonathan started with travel rewards: Wife’s family in Zimbabwe: $6,000 in flights every two years

https://www.choosefi.com/travel

What is this travel rewards strategy all about?

Minimum spending requirement defined Options to meet minimum spending requirement

Return on investment: instead of 1.5% rewards, you can earn upwards of 33%

Impact on credit score and Brad’s personal experience Is this strategy right for you?

The Chase Gauntlet and why you want to focus on Chase cards first Where to start? Chase Ultimate Rewards

How to earn the Southwest Companion Pass (and the value of the pass) Business credit cards Ultimate Rewards points and three ways to redeem them

Jonathan’s trip to Zimbabwe: Helping him save $6k in 5 minutes How to search for flights at United’s website

If this strategy can take Jonathan to Zimbabwe, it can take you anywhere! Other destinations with ‘sweet spot’ options: Costa Rica, Hawaii, Europe

If you want to take 1-2 nearly free vacations per year, this strategy is right for you

ChooseFI.com/Travel

Travel Credit Cards

008 | Avoid Bank Fees at All Cost Jan 30, 2017

008 | In Today’s Podcast we cover: Don’t piss off the accountant: Bank Fees Americans spent $32 Billion in overdraft fees in 2016

Bank accounts and credit cards should be financial tools you use for free Overdraft fees mean you have no money and the bank is loaning you money for $35 at a time

If you don’t have $1,000 in savings you have an emergency Jonathan had one overdraft in 2016 but his system for putting it on a credit card avoided a fee

One fee leads to another. Come up with an action plan to avoid them If you get hit with a fee, call your bank to ask them to waive it

If you threaten to leave your bank over a fee, they will almost always waive it

Determine if you need a local branch for your bank to save more money If you’re getting hit with any fees, you need to sit down with your banker to come up with a plan

007 | America’s Food Obsession | How to Crush Your Grocery Bill Jan 23, 2017

007 | In Today’s Podcast we cover: America’s food obsession: We’re fat and broke How Brad’s family saves money on food Being smart with ingredients.

How often does Brad’s family go out to eat? Go out for lunch instead of dinner Emergency meals in extra freezer Being efficient shopping at one store.

Cut down on business Plan out the 2-3 meals you want to cook for the week Index of Top 50 recipes (A++ recipes) to cook Getting five nights of dinner out of cooking two meals Jonathan’s plan: cook for multiple nights and don’t waste food

The waistline test and the fridge test Food budget programs Making food prep psychologically easy. Simplicity is key

The Ultimate Costco Meal Plan and 10 items Jonathan buys 31 loaves of bread from one 25-pound bag of flour, 18 cents per loaf Find out your price per unit on your staple foods

Jonathan doesn’t eat out at restaurants where he needs to leave a tip (goes to Chipotle and Panera) Health consequences – don’t overeat To cut down on portions, plan for leftovers Take willpower out of decision-making Small tweaks to make your life better over years Healthy lifestyle saves money on healthcare

006 | The Power of Partnerships | ChooseFI Origin Story Jan 16, 2017

006 | In Today’s Podcast we cover: The Power of Partnerships How Brad and Jonathan met Our decision to partner up on Choose FI The importance of taking action

The value of personal relationships in an online world What to look for in a partner Complementary skills and how it can help beat the learning curve How to find a partner in your niche

Find people you connect with and meet in person if possible

Split up the duties in the partnership to create an effective partnership Partnerships likely aren’t going to be 50%/50% in time spent, but you can still add value

Have an understanding from the outset what the partnership will entail to avoid problems down the road

005 | Why Everyone Needs Dave Ramsey and Why You Should Ignore Him Jan 09, 2017

005 | In Today’s Podcast we cover: Dave Ramsey and Jonathan’s history following him Dave’s unyielding stance on debt: don’t do it Review and evaluate Dave’s teaching philosophies Baby Step 1: Get an emergency fund of $1,000

Baby Step 2: Pay off all your debt except for your mortgage Explanation of the Debt Snowball Our hybrid approach to the Debt Snowball vs. Debt Avalanche Advice isn’t “one size fits all.” You need to figure out what works for you! The 4% rule explained and the impact on financial independence

Dave Ramsey says to not take advantage of 401k match if you’re paying off debt The math of personal finance vs. the psychology of personal finance

Baby Step 3: Get 3-6 months of expenses in savings Our personal emergency fund strategies

Baby Step 4: Invest 15% of household income into Roth IRAs and pre-tax retirement funds

Baby Step 5: College funding for children Baby Step 6: Pay off your home mortgage early

Baby Step 7: Build wealth and give Please leave us a written review on Itunes to help the podcast grow

Corrections from the show Roth's do not require any seasoning period. You can withdraw your initial contributions tax free at any time for any reason. It does not have to season for five years. Practically this makes the Roth even more powerful as a possible savings vehicle during your teens and college years when your tax rate is very low

004 | Get Off The Hamster Wheel | Jonathan Backstory Dec 27, 2016

004 | In Today’s Podcast we cover: Interviewing Jonathan to hear his story August 2013 Jonathan graduated from Pharmacy School with $168,000 student loan debt

How did he get to that point? ‘Followed the rules’ to get his pharmacy degree but came out owing $1,000 per month in interest You don’t have as much money as you think: the impact of taxes

How many years of work he gave up to pursue advanced degree and then pay down the debt just to get back to $0 net worth Would there have been a more efficient way to earn a $100k+ income?

How Brad saved 90% of his income the first 2 years living at home and how it set him up for life Jonathan paid off his $168k of student loan debt in 3.5 years (!)

What it takes: Incredible focus & intensity Create metrics to track to make paying down debt a fun game He looked at every single monthly expense to see if they could save money

They were able to cut their cost of living from $60k per year to $38k per year Is there a need for an emergency fund?

Differences in financial personality types When loans are paid off where does he go from here? Plans for 2017: emergency fund, create blog and podcast, create new streams of income

003 | Let’s Talk About Fees | Why Investment Fees Are Evil and How to Avoid Them Dec 23, 2016

Do understand how expensive your investments are?Jonathan and Brad explore how Expense Ratios and Assets Under Management Fees Erode your Returns and Portfolio over time.

And why avoiding them is the difference of millions of dollars.

Resources Mentioned Investment Calculator https://apps.choosefi.com/calculators/

https://apps.choosefi.com/start

Check out our Book

https://apps.choosefi.com/book

002 | Why Failure Matters | Brad Backstory Dec 20, 2016

Brad shares how he iterated out of failure to a online business success and how you can too!

The skills learned, even from ‘failures’: ability to create websites, The value of personal relationships, even in an online world.

The value of being a “real” person and how people relate to that Aligning your incentives with your audience to create a successful site and a win-win Turning an online website into a “real” business

Resources mentioned in show

https://www.choosefi.com/blog

https://www.choosefi.com/disney

https://www.choosefi.com/travel

001 | Get Started on Your Path to Financial Independence Dec 18, 2016

What if you could get to the point where working is optional not just in your golden years but in your best years and have fun doing it.

Welcome to the Financial Independence Community In the Original First Episode of the ChooseFI Podcast Brad and Jonathan share their objectives for the show and what they want you to get out of it.

Welcome to the Show! Jonathan & Brad are not gurus. They are 2 average guys who are figuring out the rules of Financial Independence and sharing what they find with millions of other like minded people.

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