ChooseFI

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: Mr Money Mustache The Motley Fool Board Game Geek Board Game Arena Subscribe to The FI Weekly! 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

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: Four Thousand Weeks | ChooseFI Book Club | ChooseFI Ep 415 "Dollars and Sense: How We Misthink Money and How to Spend Smarter" by Dr Dan Ariely and Jeff Kreisler "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins The Peter Attia Drive All The Hacks Taking Stock of Your Life | Jordan Grumet | ChooseFI Ep 390 Playing With FIRE Todoist Tim Ferriss Huberman Lab My First Million ChooseFI Travel Rewards Travel Rewards: How To Travel The World For Almost Free (The Easy Way) | ChooseFI Ep 9 A Guided Meditation for When the Stock Market Is Dropping Go Curry Cracker | Capital Gains, Losses and The Roth Conversion Ladder | ChooseFI Ep 18 "A Deadly Education" by Naomi Novik "The Premonition: A Pandemic Story" by Michael Lewis "The New New Thing: A Silicon Valley Story" by Michael Lewis "The Undoing Project: A Friendship That Changed Our Minds" by Michael Lewis Subscribe to The FI Weekly! 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

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: Our Retirement Investment Drawdown Strategy The Tail End "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins How to Calculate Your Safe Withdrawal Rate without using Simulations Subscribe to The FI Weekly! 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

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: Scott Trench | Set For Life | ChooseFI Ep 63 First-Time Home Buyer | BiggerPockets | ChooseFI Ep 312 "Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!" by Robert Kiyosaki Mr. Money Mustache on Life After FI: The Truth About Retiring Early in Your 30s BiggerPockets Rental Property Calculator Subscribe to The FI Weekly! 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

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: Year End Wins 2022 | ChooseFI Ep 417 "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins The Peter Attia Drive, Episode #237 ‒ Optimizing life for maximum fulfillment | Bill Perkins All The Hacks | Die With Zero: Net Fulfillment Over Net Worth The Tail End "David and Goliath: Underdogs, Misfits, and the Art of Battling Giants" by Malcolm Gladwell Berkshire Hathaway Shareholder Letters Your Bold Move for 2023 | Dominick Quartuccio | Ep 419 Limitless Peter Attia & Beth Lewis on Dynamic Neuromuscular Stabilization (DNS) Subscribe to The FI Weekly! 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

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: From Addiction To FI | Ms. Fiology | ChooseFI Ep. 106 "The Simple Path to Wealth: Your road map to financial independence and a rich, free life" by J.L. Collins and Mr. Money Mustache The Emergency Fund…Is it a Bad Idea? | Big ERN The Reveal | ChooseFI Ep. 66 "The Body Keeps the Score: Brain, Mind, and Body in the Healing of Trauma" by Bessel van der Kolk M.D. "Brain Rules: 12 Principles for Surviving and Thriving at Work, Home, and School" by John Medina "Forgive for Good: A Proven Prescription for Health and Happiness" by Frederic Luskin The Art of Forgiveness Todoist Subscribe to The FI Weekly! 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  

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: feedback@choosefi.com Die With Zero: Net Fulfillment Over Net Worth | All The Hacks Buy Back Your Time: Get Unstuck, Increase Productivity and Live the Life You Want | All The Hacks Playing With FIRE The Drive With Peter Attia Your Bold Move for 2023 | Dominick Quartuccio | ChooseFI Ep 419 Top Ways to Make This Year Amazing and Seven Simple Questions for Your Annual Review | All The Hacks My First Million Using an Investing Checklist to Improve your Portfolio | All The Hacks Paprika Delete Me Kubera Fancy Hands Eat Healthy and Save Money with the Laura Barrett Cookbook The 1% Rule in Real Estate: Is This a Realistic Way to Evaluate Rentals? House FIRE | ChooseFI Ep 414 Rocket Money Todoist Trustworthy Peter Attia DNS Huberman Lab Podcast Optimizing Your Health: Diagnostic Tests, Choosing a Doctor, Sleep, Longevity, Inflammation and More | All The Hacks Subscribe to The FI Weekly! 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

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: Raising Voyagers TalentStacker House Hacking With Coach Carson | ChooseFI Ep 16 My First Million Podcast Dominick Quartuccio M1 Finance Review 2022: Commission-Free Automated Investing For Everyone "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins How And Why To Set Up A Roth IRA Conversion Ladder | ChooseFI Go Curry Cracker | Capital Gains, Losses and The Roth Conversion Ladder | ChooseFI Ep 18 "Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't" by Brian Feroldi Subscribe to The FI Weekly! 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

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: Secure 2.0 and The FI Community Subscribe to The FI Weekly! 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

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: Headspace Yoga Nidra Atomic Habits | James Clear | ChooseFI Ep. 157 "Atomic Habits" by James Clear Calm Insight Timer Playing With FIRE Documentary "Altered Traits: Science Reveals How Meditation Changes Your Mind, Brain, and Body" by Daniel Goleman and Richard Davidson "Peak Mind: Find Your Focus, Own Your Attention, Invest 12 Minutes a Day" by Amishi P Jha Mark Divine All The Hacks "Die with Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins Alchemized Life| Jordan Harbinger: How to Build a Podcast | Episode 19 "The Predicting Brain" by Regina Pally The Tail End Subscribe to The FI Weekly! 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

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: Find Your Local ChooseFI Group "The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich" by Tim Ferriss "Outwitting the Devil: The Secrets to Freedom and Success" by Napoleon Hill "The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life" by Mark Manson "Man's Search for Meaning" by Viktor Frankl "Never Eat Alone, Expanded and Updated: And Other Secrets to Success, One Relationship at a Time" by Keith Ferrazzi and Tahl Raz John Olsen YouTube Subscribe to The FI Weekly! 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

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: The Motley Fool The Simple Path to Wealth | JL Collins | ChooseFI Ep 411 Early Retirement Now The Role Of Bonds In A Portfolio | ChooseFI Ep 194 Subscribe to The FI Weekly! 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

Happy Holidays! As the year's end approaches, it's only natural to look back and think of all that you’ve accomplished. Whether you just began your FI journey this year or are well on your way, recognizing the improvements you’ve made throughout the year is essential and worth celebrating! This episode is our 6th annual year-end wins episode, and we are re-joined by MK Williams to listen and read submissions from our listeners and celebrate the progress of our audience through different stages of their FI journeys! This episode is meant to not only inspire but remind us how personal this journey is, and remind you to take some time and reflect on the progress you have made this year. Celebrate the wins of your own, no matter how big or small! Timestamps: 1:27 - Introductions 3:43 - Adrianna's Wins 6:00 - David's Wins And The Post-It Note 9:48 - Will and Abby's Wins And Retirement Accounts 13:45 - Melissa Devon, and Brittany's Wins, Traveling And Saving 16:40 - Dominic and Leila's Wins, Stacking Accounts And Side Hustles 20:35 - Erica's Wins And Leveling Up In Life 24:11 - Justin's Wins And Financial Wellbeing 27:41 - Kristen's Wins And Paying Off The Mortgage 30:38 - Tommy's Wins And Changing Careers 33:24 - Wes And Sarah's Wins, Erasing Debt And Job Upgrades 35:50 - Lindsey's Wins, Travel Rewards And 2-Player Mode 38:18 - Tom and Danielle's Wins, Taking Action And Paying Off Student Loans 40:00 - Kelly's Wins, Budgetting And Communities 42:41 - Yvette's Wins And Making FI Do-Able 44:42 - Dennis' Wins And From Student Loan's To Disney World 47:00 - Valerie's Wins And Dumbfounding The Experts 48:56 - Dilyara's Wins And Crushing Early Stage FI 51:19 - Lauren's Wins And Doing The Legwork 56:28 - Conclusion Resources Mentioned In Today’s Episode: "Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required" by Bryce Leung and Kristy Shen From Pandemic Layoff to $100k+ | A Salesforce Success Story | ChooseFI Ep 297 Step-By-Step Guide to a (Nearly) Free Disney Vacation (2022) Subscribe to The FI Weekly! 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

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: What I've Learned From One Year Of "Fun-Employment" - Diania Merriam The Reality Of Leaving A Toxic Work Enviornment - Diania Merrian Accountability | Diania Merriam | ChooseFI Ep 150 Myths and Misconceptions | Diania Merriam | ChooseFI Ep 306 Subscribe to The FI Weekly! 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

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: 18 Months of Massive Action | Josue | ChooseFI Ep 406 The Imperfectionist The Mad Fientist "Outwitting the Devil: The Secrets to Freedom and Success" by Napoleon Hill The Great Man Within "Finding Flow: The Psychology of Engagement with Everyday Life" by Mihaly Csikszentmihalyi "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins "A Complaint Free World: How to Stop Complaining and Start Enjoying the Life You Always Wanted" by Will Bowen Ginger's Blog "FI Is Fun" Subscribe to The FI Weekly! 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

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: "A Million Bucks by 30" by Alan Corey Coach Carson Paula Pant Subscribe to The FI Weekly! 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

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: LeaveUs A Voicemail For Your Year End Wins The Top Chase Business Credit Cards for 2022 Alignment & Adjustments | Scott & Taylor Rieckens | ChooseFI Ep 403 The Tail End Subscribe to The FI Weekly! 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

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: Leave A Voice Message Of Your Year End Wins The Top Chase Business Credit Cards for 2022 The Simple Path to Wealth | JL Collins | ChooseFI Ep 411 Subscribe to The FI Weekly! 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

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: JL Collins from jlcollinsnh | The Stock Series | Part 1 | ChooseFI Ep 19 The Stock Series Part 2 | JL Collins | ChooseFI Ep 34 What is The Simple Path to Wealth? | JL Collins | ChooseFI Ep 284 Alan and Katie Donegan's VTSAX Blog Chautauqua | Oh The Places We Will Go | ChooseFI Ep 64 Subscribe to The FI Weekly! 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

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: Travel Rewards: How To Travel The World For Almost Free (The Easy Way) | ChooseFI Ep 9 Peter Attia Huberman Lab Alignment & Adjustments | Scott & Taylor Rieckens | ChooseFI Ep 403 Intuit Mint The BiggerPockets Money Podcast Subscribe to The FI Weekly! 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

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: Paying Taxes When You're Self-Employed IRS Publication 560 IRS Form 8962 Instructions on Premium Tax Credit IRS Publication 974 Premium Tax Credit Creating Your Dream Job | ChooseFI Ep 117R Roth IRA Conversion Ladder Case Study | ChooseFI 163R Healthcare.gov ACA Plans Cody Garrett's Tweet Illustrating ACA Medical Insurance Premiums and PTCs Subscribe to The FI Weekly! 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

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: Dave Ramsey Step-By-Step Guide to a (Nearly) Free Disney Vacation (2022) Travel Rewards Refresher 2022 | Lyn Mettler | ChooseFI Ep 393 The Tail End "Die With Zero" By Bill Perkins TalentStacker's Salesforce Career Development Program Making The Case For Part Time With Bradley Rice | ChooseFI Ep 117 From Pandemic Layoff to $100k+ | A Salesforce Success Story | ChooseFI Ep 297 From Stay At Home Parents to High Paying Salesforce Careers in Under 6 Months | Salesforce For Everyone Mama Bear Apologetics All the Hacks Join ChooseFI's Facebook Group! Subscribe to The FI Weekly! 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

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: Kristi & Big Ern | ChooseFI Ep 259 Is My Company’s Stock Overpriced | P/E Ratio Explained | ChooseFI Ep 314 Career Hacking With ESI Money | ChooseFI Ep 23 Negotiate Your Salary With Tori Dunlap | ChooseFI Ep 147 How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic | ChooseFI Ep 211 Rebel Entrepreneur Alan and Katie Donegan's Free Extraordinary Life Course Money With Katie | Katie Gatti | ChooseFI Ep 399 Transition Planning from a Military Career on the Path to FI | ChooseFI Ep 296 The Simple Startup Subscribe to The FI Weekly! 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

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: Flexible Spending Rules For Early Retirees | ChooseFI Ep 176 JL Collins "The Simple Path to Wealth: Your road map to financial independence and a rich, free life" by JL Collins "Influence: The Psychology of Persuasion" by Robert B. Cialdini The Knowledge Project "Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones" by James Clear The Trades Path To FI | Captain DIY | ChooseFI Ep 103 The 18-Year-Old Who Actually Listened | Ep 388 Just Keep Buying | Nick Maggiulli | Ep 404 Leasehackr "Four Thousand Weeks: Time Management for Mortal" by Oliver Burkeman Subscribe to The FI Weekly! 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

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 3 words got me 3 MILLION SUBSCRIBERS "Die With Zero: Getting All You Can from Your Money and Your Life" by Bill Perkins "The Tail End" By Tim Urban Peter Attia Subscribe to The FI Weekly! 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

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: Playing With FIRE | Documentary | Scott Rieckens | ChooseFI Ep 37 "The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work" by Shawn Achor The Tim Ferris Show The Great Man Within "Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts" by Annie Duke 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

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:  Introducing Our Households of FI!! Part 1 | Ep 221 If People Can Do It I Can Do It Too | Vivian Connects With Leslie Tayne | Households Of Fi | Ep 255 Navigating a Multigenerational Household | The Financial Tortoise | EP 302 Brian Feroldi JL Collins "Just Keep Buying: Proven Ways to Save Money And Build Your Wealth" By Nick Maggiulli Mega Backdoor Roths: How They Work 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

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 Modern FImily With Court | ChooseFI Ep 166 Your Flex Rate: The Crucial Factor Behind A Successful Early Retirement Find Your Local ChooseFI Group! Early Retirement Now Living Frugal Frugalwoods | Save 75% Of Your Take Home Pay | ChooseFI Ep 12 Subscribe to the FI Weekly! 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

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: Households of FI-Zach and Marilyn Talk Real Estate Investing With Paula Pant | ChooseFI Ep 247 Discovering the Power of FU Money | ChooseFI Ep 321 Side Hustle Nation "$1,000 100 Ways: How Real People Make Real Money on the Side (and how you can too)" by Nick Loper The Unfair (FI) Advantage Of Teachers | 457b | ChooseFI Ep. 13 Early Retirement Now "The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich" by Tim Ferriss Subscribe To The FI Weekly! 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

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 Young Money The Mad Fientist Meet the Frugalwoods | Achieving FI Through Simple Living | ChooseFI Ep 65 Paul Merriman Introduces The Ultimate Buy And Hold Portfolio | ChooseFI Ep 130 Paul Merriman | ChooseFI Ep 290 M1 Pies: Level Up Your Dividend Strategy and Optimize Your Portfolio Like a Pro (2022) "Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required" by Kristy Shen and Bryce Leung The Huberman Lab Podcast The BiggerPockets Money Podcast Subscibe to The FI Weekly! 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

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: Introducing Our Households of FI!! Part 1 | ChooseFI Ep 221 Households of FI-Troy & Lindsay and Brad Calculate Their FI Number | ChooseFI Ep 241 Mr Money Mustache The Mad Fientist The Great Man Within Level Up In Tech Udemy A Cloud Guru TalentStacker's Salesforce Career Development Program The BiggerPockets Money Podcast 1500 Days to Freedom Should I Refinance My Mortgage? | Ep 167R New Retirement Negotiate Your Salary With Tori Dunlap | Ep 147 How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic | Ep 211 "Raising Your Money-Savvy Family For Next Generation Financial Independence" By Carol Pittner and Doug Nordman Subscribe to The FI Weekly! 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

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: Join ChooseFI's Facebook Group! Yubico Lastpass 1Password KeePass Why You Need A Legacy Binder JL Collins Die With Zero: Getting All You Can from Your Money and Your Life By Bill Perkins RunnersFI Suggested Books Libby Subscribe to The FI Weekly! 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

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 Early Retirement Extreme Mr Money Mustache HSA – The Ultimate Retirement Account in 2022 Go Curry Cracker | Capital Gains, Losses and The Roth Conversion Ladder | ChooseFI Ep 18 A Second Generation FI Case Study | Cody Berman FlytoFI | ChooseFI Ep 83 All The Hacks The High Cost Of Living Path To FI | ChooseFI Ep 41 JL Collins Brian Feroldi Check Out ChooseFI On Facebook Find Your Local Group! Subscribe to The FI Weekly! 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

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: HyperDebt | The Debtist | ChooseFI Episode 98 The Student Loan Planner The Student Loan Reset | The Student Loan Planner | ChooseFI Ep 391 Travel Rewards Refresher 2022 | Lyn Mettler | ChooseFI Ep 393 Travel Rewards: How To Travel The World For Almost Free (The Easy Way) | ChooseFI Ep 9 You Need A Budget (YNAB) Do You Need A Budget? | YNAB | ChooseFI Episode 165 Subscribe to The FI Weekly! 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

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: "Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!" by Robert T Kiyosaki "Rich Dad's CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom" by Robert T Kiyosake American Red Cross Todoist The Motley Fool Travel Rewards What Comes After Chase | Travel To Disney World For Nearly Free | ChooseFI Episode 31 Step-By-Step Guide to a (Nearly) Free Disney Vacation (2022) Atomic Habits | James Clear | ChooseFI Episode 157 The Student Loan Reset | The Student Loan Planner | ChooseFI Ep 391 Boyd Meeting His Donor Nathan! Subscribe to The FI Weekly! 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

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: The Chase Sapphire Preferred® Card Review ChooseFI's List of Travel Rewards Cards Travel Rewards: How To Travel The World For Almost Free (The Easy Way) | ChooseFI Ep 9 Travel Rewards What Comes After Chase | Travel To Disney World For Nearly Free | ChooseFI Ep 31 Travel Rewards | Marla Taner | ChooseFI Ep 77 Families Fly Free | ChooseFI Ep 353 Turo Airbnb Vrbo Vacasa David's Vacation Club Subscribe to The FI Weekly! 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

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 Choose FI: Your Blueprint to Financial Independence Alan Donegan Coach Carson Scott Trench How Real Estate Investors Make it Work in High Interest Environments | Coach Carson | Ep 387 Mr. Money Mustache Side Hustle Nation Join ChooseFI's Facebook Group Book your custom student loan plan with Student Loan Planner Your Money or Your Life by Joe Dominguez, Vicki Robin, and Mr Money Mustache Find Your Local ChooseFI Group! Leave Us a Voicemail Subscribe to The FI Weekly! 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 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

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 studentaid.gov Book Your Custom Student Loan Plan Student Loan Planner with Travis Hornsby | ChooseFI Ep 202 Student Loan Debt Repayment | Travis Hornsby | ChooseFI Ep 78 Subscribe to The FI Weekly! 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 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

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 Real Estate & Financial Independence Podcast with Coach Carson Ordinary Sherpa "Die With Zero" by Bill Perkins JL Collins "The Tail End" by Tim Urban Subscribe to The FI Weekly! 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

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 Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage by Mary Buffett and David Clark https://www.fool.com/author/14471/ Stock Fundamentals With Brian Feroldi | ChooseFI Ep 200 Subscribe to The FI Weekly! 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

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 Subscribe to The FI Weekly! Virginia's Community Colleges Miss Excel From Pandemic Layoff to $100k+ | A Salesforce Success Story |EP 297 Free Salesforce 5-Day Challenge 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 side hustle with one of our educational courses Slash your cell phone bill without sacrificing service with Mint Mobile

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 Redfin Zillow Paula Pant, Afford Anything Find your Local ChooseFI Group! BiggerPockets Forums Subscribe to The FI Weekly! 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

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 How To Test Out of College While You’re Still In High School | Millionaire Educator | ChooseFI Ep 238 Sophia Learning Modern States Credly Study.com Sophia Learning's Partners A $7,500 College Degree in 12 Months? Subscribe to The FI Weekly! 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

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 Functionality with Numbers | Ep 384 Subscribe to The FI Weekly! Join ChooseFI's Facebook Group! Playing With FIRE Discovering the Power of FU Money | ChooseFI Ep 321 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

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 The Tim Ferris Show Episode #604 Edward O. Thorpe How To Decide With Annie Duke | ChooseFI Ep 262 "Thinking in Bets" by Annie Duke Risk Parity Radio The Simple Path to Wealth Subscribe to The FI Weekly! 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

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 Managing Stress by Leveraging FI | The Fioneers | Ep 229 A Deep Dive into Lifestyle Design Coast FI vs. Slow FI: What's the Difference? You are Not Your Work: How to Reclaim Your Identity Subscribe to The FI Weekly! 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  

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 The Tail End Subscribe to The FI Weekly! Common Sense Spending Guidelines | Housing | Ep 381 Blockchain, Smart Contracts, and NFT’s | EP 361 Blockchain, Smart Contracts, and NFT’s Part 2 | EP 362 Pump and Dump | EP 323 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

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 Can I Get An Extension, Please? | ChooseFI Ep 372 TurboTax Subscribe to The FI Weekly! SmartAsset The Happy Philosopher Chad Carson Paula Pant 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 🌏 Exclusive! Grab the NordVPN deal ➼ https://nordvpn.com/choosefi Try it risk-free now with a 30-day money-back guarantee! ✌

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 Dropbox Blockchain, Smart Contracts, and NFT’s | EP 361 Subscribe to The FI Weekly! 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  

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 From Pandemic Layoff to $100k+ | A Salesforce Success Story | ChooseFI Ep 297 Making The Case For Part Time With Bradley Rice | ChooseFI Ep 117 Negotiate Your Salary With Tori Dunlap | ChooseFI Ep 147 Check Out The FI Weekly! The Role Of Bonds In A Portfolio | ChooseFI Ep 194 Are You as Diversified as You Think You Are? With Frank Vasquez | ChooseFI EP 313 Talent Stacker 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

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

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 Step-By-Step Guide To A Free Disney World Vacation Early Retirement Now The Retirement Manifesto Your Money Or Your Life By Vicki Robin, Joe Dominguez, and Mr Money Mustache Drawdown Strategy | The Retirement Manifesto | ChooseFI Ep 43 What Does Inflation Mean For Investors With Big ERN | ChooseFI Ep 331 Subscribe to The FI Weekly! 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

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 The Four Backstops to then Four Percent Rule Financial Resilience in a Bear Market | ChooseFI Episode 172 Early Retirement and Social Security Early Retirement Now Financial 180 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

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 Find The Article Mentioned By Brad and Jonathan Here! KiwiCo The Tim Ferris Show Check Out ChooseFI's Financial Independence A to Z series! Subscribe to The FI Weekly! 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

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 The Stacking Benjamins Podcast Wellbeing Monthly Budget Tool Vertex42 Afford Anything With Paula Pant Tiller Money YNAB Do You Need A Budget? | ChooseFI Episode 165 Intuit Mint Dave Ramsey's Envelope System EveryDollar It's Your Money Excel Deluxe Envelope Check Registrar Personal Capital Subscribe To The FI Weekly! 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

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 WeCrash ChooseFI's PreK-12 Curriculum The Rebel Entrepreneur With Alan Donegan Start Your FI Journey With ChooseFI! Subscribe to the FI Weekly! Financial Independence A to Z Joe Saul-Sehy The Mad Fientist 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

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 Huberman Lab Podcast The Peter Attia Drive Podcast Fifth Wheel Physical Therapist NFTs For Newbies Podcast: "Taxes and NFTs Part 1 With Brad Barrett" NFTs For Newbies Podcast: "Taxes and NFT Part 2 With Brad Barrett" Subscribe To The FI Weekly! 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

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 The Motley Fool Subscribe to The FI Weekly! 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

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 Information About The "Stacked" Book Tour Rob Phelan and The Simple Startup Franklin's Fortune Paula Pant and Afford Anything JL Collins and The Simple Path To Wealth Find Your Local ChooseFI Group! Subscribe to The FI Weekly 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

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 "Goals!: How to Get Everything You Want -- Faster Than You Ever Thought Possible" by Brian Tracy Bigger Pockets "A Complaint Free World: How to Stop Complaining and Start Enjoying the Life You Always Wanted" by Will Bowen Subscribe to the FI Weekly! 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

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 The Happy Philosopher | The Happiest Man In The Room | ChooseFI Episode 48 Get Off The Hamster Wheel with Jonathan Backstory | ChooseFI Episode 4 7 Decluttering Tips to Organize Your Life in 2022 The Tim Ferris Show DMA Choice Opt Out Prescreen Valpack Opt Out Your Ad Choices Subscribe to The FI Weekly! Derek Sivers 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

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 Subscribe to the FI Weekly! The Art of Frugal Hedonism Root of Good JL Collins Early Retirement Now Flexible Spending Rules For Early Retirees | ChooseFI Episode 176 Camp FI Find Your Local ChooseFI Group Today! Join ChooseFI's Facebook Group! Risk Parity Radio 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

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 Berkshire Hathaway Letter to Shareholders "The Happy Body" by Aniela and Jerzy Gregorek Making Bold Moves with Dominick Quartuccio | ChooseFI Episode 355 The Why Of FI | ChooseFi Episode 038 How to Get Out of Debt | ChooseFI Episode 115R Debt 101: The Ultimate Guide to Debt 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

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 "Factfulness: Ten Reasons We're Wrong About the World--and Why Things Are Better Than You Think" by Hans Rosling, Anna Rosling Ronnlund, and Ola Rosling "Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence" by Vicki Robin, Joe Dominguez, and Mr. Money Mustache Subscribe to The FI Weekly! 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

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 Hoopla Chris Hutchins - All The Hacks Library Extension for Chrome Making Bold Moves with Dominick Quartuccio | EP 355 How to Train for the “Centenarian Olympics” Jerzy Gregorek Interview | The Tim Ferriss Show "The Happy Body" by Jerzy and Aniela Gregorek "Die With Zero" by Bill Perkins Download Brian Feroldi's Anti Fragile Checklist Here! Subscribe to The FI Weekly! 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

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

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 Listen To Part One of Blockchain, Smart Contracts, and NFT's Here! OpenSea LooksRare Follow Brad on Twitter! Check Out Bao Bao Money Tree! Subscribe to The FI Weekly! 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!

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 Follow @BrianFeroldi on Twitter! Etherscan The Time Ferris Show | Episode 542 Check Out ChooseFI's Facebook Group! 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

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 Huberman Lab Podcast Check Out ChooseFI's Travel Episodes! Pre-Order Why Does The Stock Market Go Up? by Brian Feroldi The True Cost Of Car Ownership | ChooseFI Episode 022 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!

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 Join ChooseFI's Facebook Group! Sean Mullaney - The FI Tax Guy Early Retirement Now Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence by Joe Dominguez, Vicki Robin, and Mr Money Mustache Negotiate Your Salary With Tori Dunlap | ChooseFI Episode 147 How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic | ChooseFI Episode 211 From Pandemic Layoff to $100k+ | A Salesforce Success Story | ChooseFI Episode 297 Sign Up for the FREE Salesforce 5-Day Challenge! 10 Ways to Increase Your Income With Alan Donegan | ChooseFI Episode 338 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!

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 Subscribe to The FI Weekly! Check Out The FI Pathfinder! 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!

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 The Stages and Checkpoints of FI | ChooseFI Episode 324 Jillian Johnsrud Welcome To The FI Community | ChooseFI Episode 100 Playing With FIRE First-Time Home Buyer | BiggerPockets | ChooseFI Episode 312 Negotiate Your Salary With Tori Dunlap | ChooseFI Episode 147 How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic | ChooseFI Ep 211 Sean Mullaney, The FI Tax Guy Families Fly Free | ChooseFI Episode 353 Follow Brad on Twitter! Follow Land Shark on Twitter! Setting up a Special Needs Trust | ChooseFI Episode 108 Subscribe to The FI Weekly! 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!

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 Money Letters To My Daughter with Jackie Cummings Koski | ChooseFI Episode 161 Subscribe to The FI Weekly! Join ChooseFI's Facebook group! Control Your Tax Rate |013R| ChooseFI Episode 013 Eat Healthy and Save Money with the Laura Barrett Cookbook Salesforce: A Lucrative Career and No Degree or Tech Background Needed Physician On FIRE | FI For Medical Professionals | Financial Freedom Vs Financial Independence Join Your Local ChooseFI Group Crush Your Travel Costs With ChooseFI! Mr. Money Mustache The Mad Fientist 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!

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 Design Your Future: 3 Simple Steps to Stop Drifting and Start Living by Dominick Quartuccio Design The Next Year of Your Life Masterclass Send us an email! feedback@choosefi.com Design Your Future | Dominick Quartuccio | ChooseFI Episode 033 Drift | Dominick Quartuccio | ChooseFI Episode 096 Designing Your Year For 2021 | Dominick Quartuccio | ChooseFI Episode 270 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!

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 Last Pass 1Password Runaway Winners and the Balanced Portfolio with Brian Feroldi | ChooseFI Episode 350 Talent Stacker JL Collins' Simple Path to Wealth Financial Independence 101 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!

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!

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 Cody's Interview on FA Success Sean Mullaney Annual CFP Roundtable 2017 with Kyle Mast and Danny Kenny | ChooseFI Episode 058 Jorge Soriano - Financial Planning For Good Mike Powers - Manuka Financial XY Planning Network 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!

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 Subscribe to the FI Weekly! The Backdoor Roth IRA and December 31st IRS Instructions for Form 8606 White Coat Investor's Backdoor Roth IRA Tutorial Solo 401ks, SEP IRA's, and the 2021 Stimulus 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.

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 Brian’s Anti-Fragile Checklist! Subscribe to ChooseFI’s Weekly Newsletter! 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!

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 Follow Brad on Twitter! Millenial Revolution Raising Your Money-Savvy Family For Next Generation Financial Independence by Carol Pittner and Doug Nordman Second Generation FI 401k Spreadsheet Subscribe to the FI Weekly! Join ChooseFI's Facebook Group! Transform Your Tax Return Into a Springboard for Financial Planning | ChooseFI Episode 332 Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Why We Sleep by Matthew Walker, PhD Animal Spirits Podcast Are Solar Panels Worth The Investment? Follow Brian Feroldi on Twitter! Get a copy of Brian Feroldi's Anti-Fragile Checklist Optimize Your Travel Expenses! The True Cost of Car Ownership | ChooseFI Episode 022 How Do I Figure Out The Taxes On This? | ChooseFI Episode 346 Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 ChooseFI’s Future Value of Investment Calculator Early Retirement Now Making Portfolio Adjustments With Big ERN | ChooseFI Episode 199 How Do I Figure Out the Taxes on This? | ChooseFI Episode 346 Flexible Spending Rules For Early Retirees | ChooseFI Episode 176 What Happens When The Paycheck Stops? – Keys To A Successful Retirement With Fritz Gilbert (Part 1) | ChooseFI Episode 206 102 Business Ideas for Kids | Simple Startup with Arianna and Sheila | ChooseFI Episode 308 Future Proof | ChooseFI Episode 271 Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 The Unfair (FI) Advantage Of Teachers 457b | ChooseFI Episode 13 The Millionaire Educator's 2021 Free Money Article Subscribe To ChooseFI's Weekly Newsletter Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 The Laura Barrett Cookbook You Are More Than Your Financial Capital with Laura Oldanie | ChooseFI Episode 248 $1K 100 Ways with Nick Loper | ChooseFI Episode 336 Subscribe to the FI Weekly! Take the Free 5-Day Salesforce Challenge! Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 "Richer, Wiser, Happier" By William Green "The Psychology of Money" By Morgan Housel Are You as Diversified as You Think You Are? With Frank Vasquez | ChooseFI Episode 313 JL Collins' Website Sign Up For ChooseFI's Weekly Newsletter! Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 "Fire The Haters" by Jillian Johnsrud ChooseFI's Facebook Group Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Built to Last: Successful Habits of Visionary Companies by Jim Collins Good to Great: Why Some Companies Make the Leap and Others Don't by Jim Collins Early Retirement Extreme Pimsleur Subscribe to ChooseFI's Weekly Newsletter! Follow Brad on Twitter! Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 PaperKarma Opt Out Prescreen FI Weekly: May 11,2021 ChooseFI Episode 076: Planned Spontaneity with Mrs. Adventure Rich ChooseFI Episode 048: The Happy Philosopher | The Happiest Man in the Room ChooseFI Episode 337: Ordinary Sherpa with Heidi Dusek Find Your Local ChooseFI Group! Follow Brad on Twitter! Follow ChooseFI on Twitter! TurboTax TaxCaster SmartAsset Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Subscribe to ChooseFI's Weekly Newsletter! Mr. Money Mustache Animal Spirits Podcast Frugal Fringe's Diamond Article Lower Your Internet, Cable, and Phone Bills with Trim Nextdoor Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 ChooseFI's Facebook Group Sign up for ChooseFI's Weekly Newsletter! Take The 5-Day FI Challenge Talent Stacker Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 ChooseFI Episode 23: Career Hacking With ESI Money ChooseFI Episode 147: Negotiate Your Salary With Tori Dunlap ChooseFI Episode 211: How to Negotiate Your Salary Without Burning Bridges With The Financial Mechanic Rebel Entrepreneur Coaching Series ChooseFI Episode 117: Making The Case For Part Time With Bradley Rice ChooseFI Episode 158: Real Hourly Wage With The Frugal Engineers Millenial Revolution ChooseFI Episode 233: Networking With Jordan Harbinger Influence by Robert B. Cialdini Rebel Business School Negotiation Course Notes The Ultimate Sales Machine by Chet Holmes ChooseFI Episode 129: Breaking The Glass Ceiling With Liz From Chief Mom Officer Toastmasters International Rebel Entrepreneur: 5 Ways to Build A Business With No Debt Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Find A Local Group Vincent Pugliese's Total Life Freedom Jillian Johnsrud Everyday Adventure Newsletter ChooseFI Episode 76; Planned Spontaneity with Mrs. Adventure Rich Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 $1000, 100 Ways by Nick Loper Tools of Titans by Tim Ferris Tribe of Mentors by Tim Ferris The Sweaty Startup The Financial Mentor Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Maslow's Hierarchy of Needs Into The Wind with Brandon Pearce Subscribe to our Newsletter! ChooseFI Local Groups Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Tax Basis for Beginners Transferring A Primary Residence To Children What Does Inflation Mean for Investors? With Big ERN | EP 331 Are You as Diversified as You Think You Are? With Frank Vasquez | EP 313 Risk Parity Radio Transform Your Tax Return Into a Springboard for Financial Planning | EP 332 Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 The Four Hour Work Week by Tim Ferriss Episode 147 | Negotiating Your Salary with Tori Dunlap Adventures to FI Retreat 6 Steps To Taking A Mini-Retirement Jillians Free 10-Day Life Planning Course Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 From Tax Returns To Tax Planning Solo 401(k) to Reduce 2021 AGI Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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! Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 All The Hacks with Chris Hutchins Level Up Your Dividend Strategy and Optimize Your Portfolio JL Collins Paul Merriman Paula Pant Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!  

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 ARK Fund Brian's Checklist and Early Book Access Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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 Salesforce 5-Day Challenge ChooseFI Facebook Group The Four Hour Work Week by Timothy Ferris Millennial Revolution Mr. Money Mustache Want to start your own journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!

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

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 Raising Your Money-Savvy Family For Next-Generation Financial Independence Subscribe to Brad’s newsletter, The FI Weekly The Simple Startup Summer Challenge Clothing Shop Online Want to start your own Journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!  

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. Want to start your own Journey to Financial Independence? Sign up for the free 5-Day FI Challenge here!  

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 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.      

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 Talent Stacker Salesforce 5-Day Challenge ChooseFI Episode 117 Making the Case for Part-Time With Bradley Rice

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 ChooseFI Episode 247 Households of FI-Zach and Marilyn Talk Real Estate Investing With Paul Pant ChooseFI Episode 091 Rich Carey Real Estate | Building a Rental Real Estate Snowball Machine Without Debt ChooseFI Episode 313 Are you as Diversified as You Think You Are? With Frank Vasquez 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.

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 ChooseFI Episode 211 How to Negotiate Your Salary Without Burning Bridges | Financial Mechanic ChooseFI Episode 168 Make Time Sign up for the free 5-day challenge 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.      

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 ChooseFI’s article Make Your Kid a Millionaire: Roth IRA for KidsSuze Orman’s $199 9 Steps to Financial Independence Online Course ChooseFI’s FREE Financial Independence 101 Course ChooseFI Episode 318 All the Hacks | Chris Hutchins Raising Your Money-Savvy Family for Next Generation Financial Independence by Carol Pittner and Doug Nordman 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.      

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. Resources Mentioned In Today’s Conversation ChooseFI Ep 317 All the Hacks | Chris Hutchins PaperKarma Library Extention 100 Ways to Get 1% Better With Your Finances Find your local group at ChooseFI.com/local ChooseFI Episode 022 The True Cost of Car Ownership Trim Review: Bill Negotiation Without the Hassle ChooseFI.com/lemonade GoodRx MDSave Ulta Lab Tests Eat Healthy and Save Money with Laura Barrett Cookbook Sign up for the free travel course at ChooseFI.com/travel ChooseFI Episode 311 How to Travel for Free | Stereo Live Q&A The Chase Sapphire Preferred Card – Great for Cash Back or Travel Rewards Subscribe to Brad’s newsletter, The FI Weekly CampFI 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.      

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. Resources Mentioned In Today’s Conversation Lifehacker.com ChooseFI Episode 071 Silicon Valley FI | Chris Hutchins | Grove ChooseFI Episode 121R How to Get Any Job ChooseFI Episode 311 How to Travel For Free | Stereo Live Q&A Sign up for the FREE travel rewards course! Google Flights Trip Advisor Plus Haveibeenpwned.com 1Password ChooseFI’s recommended legacy binder ToDoist Autoslash Turo The Buy Nothing Project Raising Your Money-Savvy Family for Next Generation Financial Independence by Carol Pittner and Doug Nordman Paprika Recipe Manager CampFI.org Talent Stacker Choosefi.com/salesforce Wealthfront.com/cash 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.  

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 Resources Mentioned In Today’s Conversation Get the ChooseFI ebook bundle for 20-25% discount! ChooseFI Episode 221 Introducing Our Households of FI!! | Part 1 ChooseFI Episode 241 Households of FI Troy & Lindsay and Brad Calculate Their FI Number Public Plans Database Children will gain money management skills with The Simple StartUp. The Golden Albatross: How to Determine if Your Pension is Worth it? by Grumpus Maximus The Center for Retirement Research at Boston College 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.      

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. Resources Mentioned In Today’s Conversation ChooseFI Episode 313 Are you as Diversified as You Think You Are? With Frank Vasquez Register to receive a copy of Brad’s weekly email, The FI Weekly, right to your mailbox! ChooseFI Episode 013 The Unfair (FI) Advantage of Teachers | 457b Motley Fool article: Dollar Cost Averaging: What Investors Need to Know 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.  

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. Resources Mentioned In Today’s Conversation ChooseFI Episode 224 Introducing Our Households of FI!! Part 2 ChooseFI Episode 259 Kristi and Big ERN YCharts Stockrow Is an Employee Stock Purchase Plan Worth the Risk? ChooseFI Episode 024R The Friday Roundup | How to Hack Your ESPP ChooseFI Episode 200 Stock Fundamentals With Brian Feroldi Get started on your own path to financial independence and take the 5-day challenge! 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.      

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 ChooseFI Episode 194 The Role of Bonds in a Portfolio Portfolio Visualizer Portfolio Charts The Four Phases of Saving and Investing For Retirement ChooseFI Episode 176 Flexible Spending Rules for Early Retirees Using Gold as a Hedge Against Sequence Risk – SWR Series Part 34 The Little Book of Common Sense Investing by Jack Bogle Money for the Rest of Us Podcast Money for the Rest of Us by J. David Stein 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.      

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 First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes by Scott Trench and Mindy Jensen BiggerPockets Home Buyer Bonus content 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.      

“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. 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.

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 Inspire your 10-18-year-old with the free download 102 Business Ideas for Young Entrepreneurs.  Learn why the Chase Sapphire Preferred is one of our favorite travel rewards cards. ChooseFI Episode 114 Demystify College Scholarships | Brian Eufinger | Edison Prep (Start at [4:00]) ChooseFI Episode 154 Hacking the FAFSA | Brian Eufinger Seonwoo Lee (Start at [4:05]) Edison Prep ChooseFI Episode 083 A Second Generation FI Case Study | Cody Berman | FlytoFI (Start at [15:00]) ChooseFI Episode 138 How to Get Paid to Go to College with Anthony Gary (Start at [12:50]) Colleges and Universities That Award Merit Aid ChooseFI Episode 095 A Military Path to FI | Military Dollar (Start at [40:00]) ChooseFI 238 How to Test Out of College While You’re Still in High School | Millionaire Educator Modern States Sophia.org Scholarship For Service ChooseFI Episode 139 Reaching FI With Real Estate With Sunny Burns (Start at [5:35]) DoD Smart Scholarship ChooseFI.com/Salesforce Visit ChooseFI’s college resource article: Should You Go to College in 2021? Ditch the spreadsheets and upgrade to NetSuite. 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.      

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 Get free instant access to 102 Business Ideas for Young Entrepreneurs Annaliese’s store: Creative Card Designs Get on The Simple StartUp Summer Challenge waitlist! Purchase The Simple StartUp workbook. 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.      

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 ChooseFI Episode 121R How to Get Any Job ChooseFI Episode 304 Mapping Out Your FI Number | Households of FI with Corrine MDSave ChooseFI Episode 274 Tax Planning 2020 ChooseFI Episode 289 The Roth 401K ChooseFI Episode 233 Networking with Jordan Harbinger Join us for the next live show at ChooseFI.com/live. ChooseFI.com/cards ChooseFI Episode 168 Make Time Learn why the Chase Sapphire Preferred is one of our favorite cards. 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.  

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 ChooseFI Episode 150 Accountability | Diania Merriam EconoMe Conference Get started on your own 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.      

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 Join the live show Tuesdays at 7:30 Eastern with Stereo! ChooseFI Episode 297 From Pandemic Layoff to $100K+ | A Salesforce Success Story Start your new language learning journey today with Babbel and get six months for the price of three with promo code “ChooseFI”. ChooseFI Episode 016 House Hacking with Coach Carson 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.  

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 Join the live show Tuesdays at 7:30 pm Eastern on Stereo! ChooseFI Episode 243 Households of FI | Corinne and Jillian Johnsrud Watch ChooseFI episodes at ChooseFI.tv. ChooseFI Episode 168 Make Time Smartasset.com Apps.choosefi.com Take ChooseFI’s free 5-day challenge. 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.  

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 Join the live show Tuesdays at 7:30 pm Eastern! The Tim Ferris Show The Peter Attia Drive Podcast Ulta Lab Tests The Huberman Lap Podcast Yoga Nidra ChooseFI Episode 066 The Emergency Fund…Is it a Bad Idea? with Big ERN ChooseFI Episode 194 The Role of Bonds in a Portfolio Risk Parity Radio ChooseFI Episode 292 The Complexity in Simplicity at M1 | Brian Barnes M1 Finance Review: Completely Free Automated Investing ChooseFI Episode 289 The Roth 401K and Meal Planning Made Easy Find your local ChooseFI group. ChooseFI Episode 049 Alan Donegan and The Escape Artist | The Aggregation of Marginal Gains ChooseFI Episode 117 Making the Case for Part-Time with Bradley Rice ChooseFI Episode 047 The Cult of Home Ownership and Crushing Geo-Arbitrage | Millienial Revolution De Peso a Peso Podcast ChooseFI.com/network Join Jonathan’s free podcast course at Talent Stacker. 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.  

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 ChooseFI Episode 186 Mulitple Generations Under One Roof With Financial Tortoise ChooseFI Episode 221 Introducing Our Households of FI! Part 1 ChooseFI Episode 255 Vivian Connects with Leslie Tayne SSA.gov The Simple Path to Wealth by JL Collins Smart Money Mama’s Family Emergency Binder 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.  

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 Resources Mentioned In Today’s Conversation Join us for the live show Tuesdays at 7:30 Eastern on Stereo.  Travel more and spend a lot less with the ChooseFI Travel Rewards 101 course. The Chase Sapphire Preferred Card—Great for Cash Back or Travel Rewards ChooseFI Episode 300 Relationships and Money with Jillian Johnsrud ChooseFI Episode 186 Multiple Generations Under One Roof With Financial Tortise Create a powerful money plan with The One Hour Millionaire Course and get $30 off with the code “ChooseFI30”. All-Star Money’s All-Star Originals 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.  

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 Download the Stereo app and join us on Tuesdays for the live show! Compare home and auto rates from top insurers at Policy Genius. Explore Season 2 of Rebel Entrepreneur and make money doing something you love. Register for Jillian Johnsrud’s, One Hour Millionaire Course, and get a $30 discount during the month of March with code ChooseFI30. 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.

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. Resources Mentioned In Today’s Conversation Join the live show at ChooseFI.com/live. ChooseFI Episode 147 Negotiate Your Salary with Tori Dunlap ChooseFI Episode 211 How to Negotiate Your Salary Without Burning Bridges with Financial Mechanic Learn more about the Roth IRA Conversion Ladder. ChooseFI Episode 297 From Pandemic Layoff to 100K+ | A Salesforce Success Story Find out more about the Salesforce 5-Day Challenge. The Tim Ferris Show The Drive Nav.al Real Coffee with Scott Adams How to Fail at Almost Everything and Still Win Big: Kind of the Story of My Life by Scott Adams Armchair Expert The Prof G Show ChooseFI Episode 013 The Unfair (FI) Advantage of Teachers | 457(b) ChooseFI Episode 019 The Stock Series Part 1 JL Collins ChooseFI Episode 066 The Emergency Fund…Is it a Bad Idea? | Big Ern ChooseFI Episode 035 Sequence of Return Risk | Big Ern Early Retirement Now: Why We Will Not Have a Mortgage in Early Retirement 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.      

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 Resources Mentioned In Today's Conversation ChooseFI Episode 224 Introducing our Households of FI Part 2 ChooseFI Episode 251 Brad Connects with Martin and Ayesha Find your local group at ChooseFI.com/local. 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.

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. 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.

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 Meal Planning Made Easy ChooseFI Episode 221 Introducing our Households of FI! Part 1 ChooseFI Episode 245 Household of FI Matt and Megan Get International Tax Tips from Dave McKeegan The Military Guide Raising Your Money-Savvy Family for Next Generation Financial Independenceby Carol Pittner and Doug Nordman Hire great people faster with Indeed. Ship like a pro with Pitney Bowes SendPro Online. ChooseFI.com/salesforce 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.  

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. 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.

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. 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.

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 The Big Short: Inside the Doomsday Time Machine by Micael Lewis Flash Boys: A Wall Street Revolt by Michael Lewis Learn more about M1 Finance at ChooseFI.com/M1 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.      

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! 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.

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 We're Talking Millions!: 12 Simple Ways to Supercharge Your Retirement by Paul Merriman ChooseFI Episode 284 JL Collins ChooseFI Episode 052 FIRE State of the Union with Todd Tresidder ChooseFI Episode 075 The Unfair Advantages of the Individual Investor with Brian Feroldi ChooseFI Episode 200 Stock Fundamentals with Brian Feroldi ChooseFI Episode 021 The Pillars of FI ChooseFI Episode 117 Making the Case for Part-Time with Bradley Rice ChooseFI Episode 239 The Gatekeepers are Gone Get Jonathan and Bradley's free five-day email course at ChooseFI.com/salesforce M1 Finance Review 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.      

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 ChooseFI Episode 130 Paul Merriman Introduces the Ultimate Buy and Hold Portfolio We're Talking Millions!: 12 Simple Ways to Supercharge Your Retirement by Paul Merriman M1 Finance Review – Completely Free Automated Investing! 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.

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. 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.

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 ChooseFI Episode 017 Mad Fientist and Origin Story James Clear “Forget About Setting Goals. Focus on This Instead.“ Ultralearning: Master Hard Skills, Outsmart the Competition, and Accelerate Your Career by Scott Young 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.

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 Chris Guillebeau's “How to Conduct Your Own Annual Review” Grass to Veggies ChooseFI Episode 248 You are More than Your Social Capital with Laura Oldanie M1 Finance Review 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.

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. 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.

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 Meal Planning Made Easy ChooseFI Episode 284 JL Collins Get a free 60 day trial of Linkedin Sales Navigator Start the year with a smart money move and get up to $3,500 when you transfer to M1 Finance Fifth Wheel Physical Therapist ChooseFI Episode 072 Should I buy Bitcoin with Myles Wakeham ChooseFI Episode 099 Generous Giving on the Path to FI with Michael Peterson Save money magically with Trim ChooseFI Episode 117 Making the Case for Part-Time with Bradley Rice Sign up for the free five-day SalesForce Challenge 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.

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