ChooseFI: The Paradox of Financial Independence | Afford Anything Podcast (Audio Only)

ChooseFI: The Paradox of Financial Independence | Afford Anything Podcast (Audio Only)

14 thoughts on “ChooseFI: The Paradox of Financial Independence | Afford Anything Podcast (Audio Only)

  1. Great topics that hit home for me. I have one of those high paying degrees that cost a fortune too. I like my job and can work it part time later but still make great income. If you could make $800 to 1200 per day how would you do FI and work? I had 300k in student related debt! I sold my house to cut 150 of that but still have 152k left. I'm about to go full on to finally kick that debt that's been hanging out with the family.
    I think moving for jobs and cheaper cost of living are hard boxes to escape but necessary if you value money and lifestyle.

  2. I am glad to have found this particular episode that encapsulates a similar conclusion that I had come to also over the years. In retrospect now, it is obvious to me how anyone can become wealthy with the right knowledge and understanding of compound interest, No college is really required. Of course, it is helpful to have a great paying job to accelerate your savings rate but as discussed, the "earning more money road" usually leads to an increased lifestyle, that is unless you wake up to the fact that it is WHAT you do with your money that is just as important, if not more so, than how much you make. I got to FI in a kind of roundabout way myself. I dropped out of college the first time and went back to a community college at the age of 32. Paid about 6k in all for a two year technical diploma and got a 37k job. The key for me was that by the time I graduated at 34, I was ready to start investing and was already frugal. 20 years later, it all paid off. Now, at 54, I am semi-retired, am basic FI and plan to totally retire in about 2 years. FI is my favorite topic! Thanks for another great podcast!

  3. When they say 25x expenses saved up, do they mean saved up in cash?
    One of my worries about retirement – true retirement is inflation (aka devaluation) of dollars in the future will make the number needed significantly larger than projected.

  4. That guy doesn’t sound like minimalist to me….houses, cars, Europe, home gym???? Guess everybody body has their version of minimalist….

  5. I love hearing the stories about Brad's day-to-day life, like what FI really looks like outside of the spreadsheets. He's so easy to listen to!

  6. I really enjoyed and relate to the part of the discussion about mastery, growing the gap, and quality of life. There are plateaus but you keep making small changes like one good thing a week.

  7. Afford Anything and ChooseFI together on one show. A lot of brain power in this episode! Two of my favorite podcasters. Good stuff as always, Paula.

  8. I think it's fine for "lower income" people because it helps them grow to do better and be more optimized. Our family may not be considered "low income" since I work about 8-10 hours of OT each week, but on my base pay they may call us that still. For a family of 4 I'll gross about $53k this year unless I choose to work a bit more. That's after previous years of $50k, $42k, and $33k to the 3 years prior. My wife stays at home and homeschools our children. We are doing fine. I'm not likely going to get our investment rate to 50% without cutting our lifestyle but I'm fine with our current 20% investment ratio and plan to try to get it to around 30% by the end of next year.

    We eat out about once/twice a week average, but rarely at expensive sit-down restaurants and we blow some money on sunk cost purchases from time to time. More often it's places like Chipotle, or Chinese food if we eat out. Oh and Papa Johns in our area has a great deal based on local sports teams that offers us half off large pizzas if certain scores are hit. It happens pretty often, so I can feed the whole family by getting 2 large take-out pizzas for $14 and then plenty of leftovers for next days lunch.

    The biggest actual benefit a lower income person/family has is if they are ACTUALLY frugal and live within those parameters well without tons of debt—that means when they get a larger income that have the best chance of being convinced to not have a huge lifestyle creep and invest that major difference. I mean, we are that a little bit… we actually had a lot of lifestyle creep until I ran into the ChooseFI podcast. They convinced me to optimize more well beyond what Dave Ramsey teaches and scale back the larger purchases to double-check myself.

    There's a lot more I could say on optimization, but I'm going to shut up now or this'll be a small novel. Great interview Paula! I love Brad and Jonathon, they helped introduce me to FIRE and the rest of the podcasters.

  9. I also think that within the financial youtube communities, there are a number of very low income christian families who manage to get out of debt, homestead and save money towards some level of independence. There are "gurus" for every income level. Its a matter of locating the right one. I am not christian, but that community in the financial arena targets the lower income levels effectively.

  10. I know some minimum wage workers who do eat out a lot, its at mcdonalds, not olive garden, but still. There are transportation cost issues sometimes, like people who won't walk or take the bus even if they work 1/4 of a mile to 1/2 a mile away or one bus ride away. People in low income situations do end up in wild levels of debt, maybe not from leasing cars, but instead from title loans, maybe they don't have HELOCs, instead they have payday loans or pawn loans. So I do think it is important to continue with this message of spending less and getting out of debt. But the types of creditors described needs to be more comprehensive.

  11. Great episode, really makes you reconsider the 'norm'!

    BTW, I also googled "top paying majors" in high school.

  12. I like how Paula pointed out that people with low incomes hear financial gurus saying eat out less often, don't buy starbucks everyday, buy used clothes and a used care etc. and they're like Duh! Thats what i'm already doing and still can't save. Coming from a low income family and earning a meager wage myself early on ($4.15/hr), I know how this feels and I feel like some are not mindful of that. Not everyone earns 50k+ a year and is able to save 50% of their income.

  13. I am so excited that you introduced me to the JET program. My 11 year old daughter has become obsessed with the idea of living in Japan and learning the language. This may be a perfect fit for her if it's still around in the future. Wonderful interview! Brad and Jonathan are my favorites!

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