Explore the intriguing concept of Coast FI, where saving for retirement becomes optional. Jess and Corey share their personal journey to achieving financial freedom at just 31. They delve into experimenting with spending for enriching experiences, rather than simply saving aggressively. The duo discusses tackling money fears together, emphasizing open communication as key. Listeners learn about the psychological aspects of financial independence and the power of compounding interest in their financial journeys.
CoastFI represents a financial milestone allowing individuals to choose not to save aggressively for retirement, emphasizing flexibility in financial plans.
Jess and Corey illustrate their journey to CoastFI at 31, highlighting the importance of compounding and time in achieving financial independence.
Overcoming money fears through open communication and joint financial analysis is essential for maintaining clarity and emotional well-being in their CoastFI lifestyle.
Deep dives
Launch of Chooseify Member Site
A new free Chooseify member site has been introduced, aimed at enhancing community engagement and communication. This platform serves as a replacement for Facebook groups and allows users to easily create accounts, manage their participation, and stay updated through email notifications for local events. The initiative is designed to facilitate better connections among members and make it easier for local groups to coordinate activities, ensuring that users don't miss important updates. Since its launch, thousands have already signed up, reflecting the excitement surrounding this new community-focused resource.
Understanding Coast Fi
Coast Fi is defined as the financial milestone where saving for retirement becomes optional, meaning individuals have enough invested to eventually reach financial independence without the need for further contributions. The concept offers flexibility in the financial independence spectrum, emphasizing that many variations exist beyond simply being financially independent or not. It allows individuals to maintain their investments while enjoying their current lifestyle without the pressure to save aggressively. This optionality can lead to improved quality of life and reduced stress, as individuals can focus on spending rather than saving under certain circumstances.
The Rule of 72 and Its Implications
The Rule of 72 is highlighted as a simple way to estimate how long it will take for investments to double based on expected annual returns. By dividing 72 by the annual rate of return, individuals can gauge their investment's growth timeline. Understanding this rule helps demystify the power of compounding over an extended period, emphasizing that even modest savings can grow significantly. Having a clear grasp of these calculations enables individuals to make informed decisions about their retirement plans and how long they can coast toward financial independence.
Experiencing Freedom Through Coast Fi
Coast Fi allows individuals to reconsider their lifestyle choices, providing them with options to spend their savings more freely or potentially reduce their work hours. Real-life examples demonstrate that achieving Coast Fi, even with lower savings rates, can still lead to significant personal freedom and enhanced life experiences. The duo discussed their journey, starting with heavy savings and later opting for reduced hours and increased spending on meaningful experiences. This evolution represents a shift from a scarcity mentality to one that prioritizes quality of life and enjoyment.
Navigating Money Fears as a Couple
Working through money fears together was crucial for the couple as they transitioned into a Coast Fi lifestyle. Their approach involves open communication about financial anxieties, coupled with thorough analysis of their budget and savings, allowing them to reassess their overall situation. Key moments of fear flare-ups prompted them to evaluate their financial status collectively, reinforcing their partnership in decision-making. They recognized that addressing these emotions, instead of suppressing them, is vital in maintaining financial health and clarity in their lives.
Brad dives into a CoastFI MasterClass with Jess, and Corey from The Fioneers
—where saving for retirement becomes optional. ??
Jess and Corey, popularizers of the term, share their unique journey transitioning from high savings rates to a fulfilling CoastFI lifestyle. They explore vital themes like financial flexibility, the psychological aspects of money fears, and how experimentation in spending can lead to empowered financial outcomes.
00:02:28 Defining CoastFI
CoastFI is described as a financial milestone where saving and investing for retirement becomes optional.
Discussion of how this concept allows individuals more flexibility in their financial journey.
00:07:11 The Realization of CoastFI
Jess and Corey share their personal journey to reaching CoastFI at the age of 31, needing around $245,000 to retire by 62.
The importance of time horizon in achieving financial goals through compounding.
00:21:38 Transitioning to a CoastFI Lifestyle
Exploration of how their focus shifted from aggressive saving to experimenting with spending for meaningful experiences.
00:23:47 Experiments with Spending & Money Management
Jess emphasizes the value of testing different spending patterns, such as renting before big purchases and embracing travel rewards instead of convenience spending.
00:48:09 Overcoming Money Fears Together
Jess and Corey discuss how money fears can resurface, how they navigate these fears together, and the importance of open dialogue and regular financial check-ins.
00:57:31 Conclusion
Reflection on their journey and the broader implications of personal finance choices in achieving a fulfilling life experience.
Timestamps and Key Insights
00:02:33 Quote: "Achieve freedom with CoastFI - where saving becomes optional!" – Jess
00:04:13 Actionable Takeaway: Calculate your CoastFI number using a CoastFI calculator.
00:07:11 Quote: "Longer timeframes mean less upfront investment to achieve CoastFI." – Corey