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Our FI Gap Year Travelling Across the US | Money Metagame May 15, 2019

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Ever considered taking a gap year right in the middle of your career? That's exactly what Becky and Noah did. We interviewed them before they went off on their 1 year road trip round the United States, and now they tell us how it went, their takeaways and plans for their future. You'll love their story. We also chat about... What surprised them about their trip Their advice to others who want to take a gap year Getting back into the workforce after a gap year Why they didn't try to start any new business ventures Why they chose California Enjoy this chat with Becky and Noah, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Becky and Noah's blog: Money Metagame Becky and Noah on Instagram and Twitter ChooseFI episode with Naseema: How I Paid Off 1 Million in Debt Article: Hotel stats from a year on the road Episode: How to make $14,000 honeymoons cost $500, and taking a gap year with Noah from Money Metagame Key takeaways from our chat with Becky and Noah 1 - Their biggest takeaways from the trip Both Becky and Noah were surprised at how comfortable they were living out of their car. They were living lean, didn't have high expectations nor a specific outline of their trip, which gave them a ton of well deserved freedom. They spent much less than they thought they would and used hotel points and cashback to reduce the cost even further. 2 - Advice for those who plan on taking a gap year Noah explains that doing a gap year right in the middle of your career is the perfect timing. He says that if they had done it too early they wouldn't have had such a decent amount of cash saved up, and the compounding interest wouldn't have had as much of an effect. They also recommend to talk to your employer and make sure you feel comfortable you'll get a job when you get back from your gap year. 3 - The biggest benefits of taking a gap year This gap year was their year to chill. Becky was burnt out from her nursing job and needed some time to recharge, so this was the perfect opportunity to do so. This time off allowed them to relax and by the end of it they were actually looking forward to going back to work. By exploring all these cities in the US, they were also able to pick a location that fitted them best. The fact that they're changing jobs also means a bump in their salary, and they've also now decided to be more relaxed about reaching FI. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

How I Reached FI Without Saving 25 x My Annual Expenses | JT May 08, 2019

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Most early retirees will tell you that you'll most likely still make money even after retire. That's why JT decided he didn't need to reach the full 25 times his annual expense in order to quit his job and enjoy being with his family. Instead he has a runway for several years and is working on land investing to produce his main income. You'll love his story. We also chat about... Reaching FI with 4 kids The runway approach to FI JT's current assets How paternity leave gave him a taste of FI Land investing as an income His healthcare strategy Enjoy this chat with JT, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Youtube video: Land Flipping 101 for Beginners Episode: How to Create Passive Income from Etsy Digital Products | Mastermind Update Camp Mustache Chautauqua UK FIREDrill Facebook group Key takeaways from our chat with JT 1 - You don't need 25 times your annual expenses to quit your job JT tells us that when attending a Camp Mustache, most early retirees told him that he'd still make money even after he was retired. After hearing this he decided to take the runway approach to FI; saving up for several years, quitting his job but still working 10-15 hours a week on a different project that will produce revenue. He is nowhere near meeting the 4% rule, but that's absolutely fine with him because he's still making money and has several years saved up in case the projects don't work. 2 - How JT quit his job 2 weeks ago JT started talking to his boss about quitting in December of 2018, giving his company a good amount of time to find a replacement. Gwen explains that many people fall into two camps when quitting a job; either telling their boss well in advance and helping them find a replacement, or letting them know 2 weeks before quitting. This is really because it depends on the relationship with the manager and boss. JT tells us that he was lucky to have a good boss and his excellent relationship with his managers is what allowed him to make a large amount of money from the start. 3 - Land investing as an income JT's current project is real estate investing with a twist. He sources land below market price and then sells it to the market at a discount. He explains that it's an easy model since it mostly uses all cash and the transactions are fast and easy. The hard part is finding the land at below market place. So far he's done deals on 16 properties and it takes him 3 months or so to sell them off. This is a great model since he explains that he gets cashback and residual income, and can expect at least a 100% return. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

How Negotiating Boosted My Income to a 6 Figure Salary | Financial Mechanic May 01, 2019

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How many times were you in a position to negotiate your salary? Financial Mechanic is a software engineer at the age of 25. She's negotiated for her salary several times which has boosted her income into the impressive 6 figures. She's now on her track to reach FI at the age of 32. You'll love her story. We also chat about... How to get a job in software engineering How she applied to jobs Why she wants to reach FI Her timeline for the next few years How negotiating booster her income to 6 figures Her love for travel Enjoy this chat with Financial Mechanic, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Financial Mechanic Blog Financial Mechanic on Twitter and Instagram 7 Tips for Negotiating - How I Doubled My Salary in Two Years Tackling the Money Taboo — How to Talk About Your Finances How I Became a Software Engineer Without a CS Degree Don’t Climb The Ladder; Take the Elevator On Love and Money—The Mechanics of Shared Finances Codecademy Khan Academy Book: Cracking the Coding Interview MatLab Episode: Canada’s Youngest Retirees and the 3 Paths to FI – Millennial Revolution Chautauquas Key takeaways from our chat with Financial Mechanic 1 - You'll learn the most on the job Financial Mechanic has a degree in mechanical engineering, but got a job in software engineering. She explains that she did have to pick a coding language to work on so she could apply to the job, and recommends Javascript as a good place to start. But she does admit that she learnt most of what she knows on the job itself. If you're thinking of a career pivot she recommends looking for a job geared towards a junior position, or even checking out schools for people who want to change industry. She researched the interview questions and read the book 'Cracking the Coding Interview' to be fully prepared. 2 - Negotiate when switching job When negotiating, FM recommends to ask employers to give the first number. Both Gwen and J also talk about the importance of knowing what to expect, whether by talking to someone already in the company or doing some in-depth research. If the employers don't give you a number, you can also ask for a range, and aim for what you feel they would accept. J emphasises that you don't need to reveal how much you got paid in your last job when applying to a new one. J and Financial Mechanic recommend not to be confrontational and to look for a win win situation. If the company can't afford the money, you can also try asking for more vacation time or other benefits. 3 - The more you negotiate the better you get at it The more negotiating Financial Mechanic did, the better she got at it. She started with $65k salary, moved up to $72k and then $105k. After that her salary kept increasing 10%, and she gained more confidence to ask for more. She admits that there are not a lot of resources for women to learn effective strategies to negotiate, but with continuous practice she now feels confident. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

How to Focus on Your Career to Reach FIRE | Stop Ironing Shirts Apr 24, 2019

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One FI strategy is focus hard on your own career to fast track your path to FI. Robert worked for the same company for 15 years, which allowed him to get multiple promotions, become a leader at a young age and retire early at the age of 36. He worked in sales and thanks to a good boss and network, he was able to move up the corporate ladder to eventually reach FI. You'll love his story. We also chat about... How to quit your job Why working in sales makes promotions easier Optimising your career to reach FI Negotiating your promotion Robert's plans after leaving his job completely Enjoy this chat with Robert, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Stop Ironing Shirts blog and on Twitter Blog post: I Gave My Early Retirement Notice... and Live Tweeted It Key takeaways from our chat with Robert 1 - Working in sales makes promotions easier Robert explains that he was able to get 5% salary promotions because he worked in sales, where your performance is more quantifiable and you have more of an opportunity to grow your career. Although people may look down on sales, it really depends on what you're selling. Robert's strategy revolves around asking the client questions and letting them talk. He also recommends getting into a sector that sells expensive products in demand. 2 - The importance of having a good mentor A good boss or mentor is the one who will put their neck out for you when you're trying to get a promotion. Robert relates much of his promotion success to trusting his boss and proving himself to his superiors. For this reason it's important to know who you're working for, what their reputation is and to make sure that they are influential and powerful. 3 - Build a skill not many people have Robert was highly skilled in commercial lending, which meant companies needed him. It meant he was confident he could always bring in revenue from his company thanks to his skills and knowledge in that specific area. Robert recommends having a highly sought after skill and also becoming a leader. Leading small groups is what increased his performance and therefore his promotions. It's a skill that does require constant learning and thinking, but pays off well in the long run. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

Planning for a Family and FIRE Apr 17, 2019

Show notes

Reaching FI and preparing for kids at the same time sometimes doesn't go as planned. In this episode we hear tips and tricks from our community on planning for children, the different options LGBTQ couples have and advice when it comes to paternity leave. You'll love this episode. We also chat about... Family timing and tips Why it can be dangerous to wait too long The different options LGBTQ couples have Why you should divide your paternity leave Working as a stay at home Dad Enjoy these tips and tricks, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Playing with FIRE Documentary Journey to Launch Financially Intentional Courtney & Nicole's Instagram House of FI Savvy History Book: The First Forty Days Financial Samurai Key takeaways from our community advice 1 - Even when you plan for children, there will be bumps on the road Planning for children can be a natural thing to do, especially in the FI community. Lynne recommends saving one year in advance if you're going to pay for daycare, and expect the cost of a child to be like a second mortgage. Jamila also recommends to pay off debt, have a home and have an FU fund before having children. Having said this, Felissa advises against waiting too long, since after the age of 30 your maternity is at a higher risk. This can be very expensive if you decide to pay for IVF, and it can harm your relationship with your partner. 2 - Work out your options as an LGBTQ couple There are quite a few options to having children as an LGBTQ couple - but it's important to plan accordingly. This ranges from adoption, to surrogacy, to adopting from a foster home. Courtney and Nicole decided to work with a fertility donor and it took quite a hit on their budget between all the missing days of work, the stress and social cost. Because they were diligent savers before they had their daughter, Nicole was able to quit her nursing job and stay home with their daughter. They've now been able to hit their FIRE number as a family of 3 but expect to add more to it when they expand their family to 4 in the future. 3 - Split your paternity leave Nicholas recommends splitting paternity leave as this helps your partner and also means you can enjoy more time with your child at different ages. It's also good to ask your company whether taking paternity leave might hinder your career - in most cases you'll be glad to know that it won't. The amount of flexibility it gives is extremely helpful. There is still a stigma around fathers taking paternity leave as well as being stay at home Dads, however people like Financial Samurai prove that people are doing it and that you shouldn't be worried of what other co-workers think. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

How I Grew My Etsy Shop to 39,000 Sales | Paper Lark Designs Apr 10, 2019

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Imagine making 39,000 sales through your Etsy shop. That's exactly what Alys Maley has made in total since she started selling digital products through her Etsy shop. She went from a full time job as a designer to working from home and earning even more through her side hustle, allowing her husband to also leave his job. You'll love her story. We also chat about... Her career as a designer Her initial investments Her journey getting to 39,000 sales Advice to those getting started How to manage clients Enjoy this chat with Alys, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Alys' shop: Paper Lark Designs Photoshop Illustrator Adobe InDesign Canva PicMonkey Facebook group: Etsy Passive Income Girls Facebook group: Etsy Passive Income FIREDrill's Facebook group: Etsy Downloads and Printables with Gwen and J J's Etsy Printables course Key takeaways from our chat with Alys 1 - Your digital product should solve someone's problem Alys attribute most of her success to simply finding a niche that solved someone's problem. Her niche is professional photographers who need templates and quick graphics to promote a session. She didn't reinvent the wheel, she didn't join an already saturated niche. She says the key is to find a niche where someone has already validated sales, but which isn't overpopulated with sellers. Understand the market and keep following this successful formula. 2 - Value your skill set When starting out, you need to value your work. If you offer a customisation for $5, you won't get high value clients and you'll be underpaid for spending hours exchanging emails and adding more customisations. Alys' clients first pay for the customisation and then she spends time personalising the digital product. For this reason it's important to understand your clients, your market and your own value. 3 - SEO doesn't always matter Alys does not invest at all in SEO, and yet has one of the most profitable shops in her niche. She says this is because she simply solved a problem, and this made clients come flocking to her shop. If your product is in high demand, you will get high sales. If you don't have the right skill set, you can teach yourself - as Alys taught her husband - but really the key thing you should focus on is what value your product is providing customers. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

Using House-Hacking to Get out of $100,000 in Debt | Even Steven Money Apr 03, 2019

Show notes

Spend based on your values rather than your wants. This is what Steve does with his money, his values being his wife, happiness, travelling, health and fitness. By focusing his money on the right things he was able to pay off over $100,000 in debt, house hack and reach his own level of freedom before even reaching FI. You'll love his story We also chat about... The moment Steve realised he needed to fix his finances How him and his wife house hacked their mortgage Moving from Chicago to Miami Spending based on values rather than wants His future FI goals The FI levers he's taking advantage of Can everyone achieve FI? Enjoy this chat with Steve, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Steve's blog: Even Steven Money Steve on Twitter, Facebook. The FIRE Documentary Episode: Set for Life with Scott Trench Key takeaways from our chat with Steve 1 - How house hacking gave Steve a huge bonus Steve explains that him and his wife moved to Chicago and bought a foreclosed house in 2012. After renovating it, they moved into the attic and used it as their own apartment and then rented out the rest of the building as well as the garden. The renters eliminated that mortgage, and with the extra payments they were able to pay the mortgage on their Florida house off. With this extra money they were able to pay off other stuff early, and get out off $100,000 in debt! 2 - Doing a FI trial run Steve focuses on his keeping a stable income and low spending, which means that him and has wife have a lot more flexibility and freedom. His wife works full time remotely, and he is building his own business. They're already at their own stage of financial freedom, and will be figuring out their ideal lifestyle for the next 3 years. Their goal is to have 1 million dollars and then use the 4% rule to live on $40,000 per year, but they are not aggressively saving at the moment as make sure to prioritise their current lifestyle too. 3 - Spending based on values rather than wants Spending based on values means buying things that truly bring happiness. If you identify your values first and then spend based on these, you are more conscious on where your money is going which therefore brings you more satisfaction. If you value cars and know a new car will make you happy, then by all means by the new car (if you can afford it, of course). Steve identifies his values as being his wife, happiness, travelling, health and fitness. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

Can FI be Bad for Your Mental Health? | Hillary Wallace Mar 27, 2019

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Have you ever felt that pursuing FI affected your mental health negatively? Today we talk to Hillary, who struggled with anxiety and depression in her younger years and has worked with therapists to improve her mental health. She is also on her journey to FI, but does not sacrifice her mental wellbeing for financial independence. You'll love her story. We also chat about... Hillary's background Doing therapy online When is it time to see a therapist? What to do as a friend Gwen and J's experiences in mental health The importance of setting boundaries Enjoy this chat with Hillary, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Talk Space The Frugalwoods Calm App Headspace Hillary Wallace on Facebook Episode: The State of FIRE : A Holiday Chat with Erin Lowry from Broke Millennial Top Mental Health Apps Impactful infographic from the National Alliance of Mental Illness A walk though site on how to seek mental health treatment Key takeaways from our chat with Hillary 1 - Like FI, improving your mental health comes from within Both Gwen and Hillary have been through some tough mental health challenges. As a friend, it's not easy to understand what the best thing to do is. Hillary says that really it is up to the person to work their mental health. Similar to FI, someone can influence you and try to reach FI, but in the end you're the one who has to take action. With mental health, friends can support you and be present, but at the end of the day only you can work on your mental well being. 2 - The stress is not worth the money Many times reaching financial independence can take a toll on your mental health. If you put work first and don't take care of your personal self, this can result in much more anxiety, stress and overall unhappiness. J used to work in a pretty stressful environment in California, and admits that the stress was not worth the money. Your financial health will only flourish when your body and self are prioritised. 3 - The importance of setting boundaries Hillary explains the importance of setting boundaries at work and your personal life in order to better manage stress and anxiety. Although it certainly depends on your position and experience, turning down certain activities and setting boundaries can help you manage stress and anxiety much more easily at work (e.g. asking to do less international travel). Hillary also recommends talking to your boss and framing it in an open ended way, as well as having an emergency fund to have the flexibility to change jobs if needed. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

Being Financially Independent as a Team | Can I Retire Yet? Mar 20, 2019

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What will you with your time once you retire early? We know you've wanted to hear more from early retirees, so today we interview Chris, who retired at the age of 41 after working for 15 years as a physical therapist, and now lives in Utah with his wife and daughter. You'll love his story. We also chat about... His job as a physical therapist His emotions when leaving his job Moving from Pennsylvania to Utah What he's currently doing with his time Figuring out the healthcare situation His plans for the future Enjoy this chat with Chris, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode Blog: Can I Retire Yet? Episode: How to Learn from Mistakes and Turn Your Life Around with Joel from FI180.com Article: Does FIRE Make Life Harder? Article: Are Health Care Sharing Ministries A Viable Alternative To Health Insurance For Early Retirement? Article: Navigating ACA Tax Credits to Purchase Affordable Health Insurance Article: Exploring the Pros and Cons of Retiring Before Your Spouse Article: A Week In The Life of a FIRE Household Article: Order of Operations for Tax Advantaged Investing Key takeaways from our chat with Chris 1 - You can have a great job and still want to leave Chris had a great job as a physical therapist. He worked at the same company for 15 years, and found the job very rewarding. He would experience every one of his patients getting better, and was working in a family atmosphere between workers. Even though he was very lucky with his working conditions, he tells us was ready for a change. There was a lot of bureaucracy and the repetitiveness made the job a little mundane. In any case, his last day on the job was full of emotion since he felt both happy and sad. As he says, leaving your job is rarely a black/white situation. 2 - What Chris does with his time As an early retiree Chris spends most of his time outside. He moved from Pennsylvania to Utah with his wife and daughter to really live right in the middle of nature. During the winter he goes skiing 4-5 days a week, and during the summer he spends his time hiking on trails. He truly is able to go out every day, and in addition has now taken up blogging and writing. He has time to take care of his daughter, and has the freedom to do as he wishes. 3 - Being FI as a team Chris' wife is still working remotely, since she enjoys her job and doesn't feel the need to retire. They are now working as a team and have made up their own rules when it comes to managing the family. They're currently living off Chris' wife income, which in turn allows their investments to grow until she decides to leave. They've also switched their mindset to investing their money in the right accounts, and not only in tax advantaged vehicles. Although one spouse being retired while the other one works is a very much debated topic, Chris explains that they are a team, and each person is in charge of different aspects of the household. Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

The Great Mortgage Payoff Debate Mar 13, 2019

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Do you believe in paying off your mortgage? Or using that money to invest in the stock market? Or a hybrid approach? In this episode we do a big debate on whether paying off your mortgage really is the right thing to do. We get some interesting voicemails from both sides of the debate, as well as some messages from the community! You'll love how interesting it gets. We also chat about... Updates from Gwen and J Voicemails for and against paying off your mortgage Gwen and J's personal take The hybrid approach Opinions from the community Enjoy this debate, and please subscribe to us in iTunes if you enjoyed it! Show notes and links from today's episode The Military Guide Rich and Regular Marriage, Kids and Money 1500 Days FIREDrill's Facebook group Key takeaways from our great Debate 1 - Some arguments for paying off your mortgage The main argument on paying off your mortgage is an emotional one. If you personally feel less stressed and happier knowing you own your home, that's likely the best strategy for you. Here are some other arguments for paying off your mortgage: It's always good to have one less bill It gives a significant boost to your FI number Having a house is good in case of having a financially insecure parent Stress, freedom and happiness cannot be calculated with numbers It increases your net worth It gives a huge boost to your savings rate (once the mortgage is paid off) 2 - Some arguments against paying off your mortgage Those against paying off your mortgage argue that really it's a numbers game, and that if you do the calculations you're most likely better off not paying your mortgage early. Here are some of the other arguments: If you have a reliable income (such as an annuity) and your mortgage payments are steady, there is no reason to pay it off early It's a hedge against inflation You might want the money around to be able to invest in something unforeseen Now is the best time to have a mortgage thanks to the super low interest rates Right now, you'll probably make more money in the stock market You might not want too much of your net worth tied into real estate 3 - At the end of the day, it's a personal choice Whether you pay it off or not, at the end of the day it's what helps you sleep best at night. Some of the other responses went for a more hybrid approach. Josh, for example, maxes out both his 401k and IRA, and then all his extra payments go towards the mortgage. Brandon also has a hybrid approach, showing that his priorities are first his employer contributions and then the mortgage. Christopher also recommends always having an emergency fund before deciding to pay off your mortgage - just in case you need the money immediately! Questions? Like or dislike? Leave us a comment! Want to support the podcast? Here are three things you can do. 1. Start tracking your net worth with Personal Capital using our link. It's free. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. 3. Join our Facebook group and connect with other members of the FI community.

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