The Financial Independence Show

On today’s episode, Cody and Justin are joined by Andy from Marriage Kids and Money. He tells us his relatable yet inspiring story of living a life with far too much spending brought on by lifestyle creep. Lifestyle creep is when you get used to a certain way of living but then as you make more money you increase that style of living little by little until it becomes unsustainable or at least larger than you intended. Andy and his wife were spending every bit of their salaries which totaled over $100k. Reality struck when she became pregnant and they knew they needed to change their ways. Now listen to the story and hear their remarkable turnaround and how Andy is now helping people walk in his footsteps. Episode Summary Andy and his wife go together in 2010 with a combined earning over $100,000 but they were carrying a good bit of debt and spending everything they earned That debt included $50k in student debt, a nice car loan and frequent use of their Home Equity Line of Credit (HELOC) They had a wake-up moment when he realized they were going to be having their first child Quickly he started pouring over podcasts, blogs, and anything to help them learn They’re currently living around Detroit which has shown a huge turnaround He bought a house right out of college in mid-2000s and realized he couldn’t afford the mortgage To help with the bills he ended up bringing in several roommates who paid the mortgage for him…Another house hack win! When he got married they realized the roommate situation wasn’t going to work so they bought a new house with the goal of paying off the new $350k house in 5 years He was able to get back all of his money from the first house but didn’t make anything off of it The first material that helped Andy really turn things around was Dave Ramsey’s Total Money Makeover Once a month, he and his wife would sit down and review their budget until they got it under control The biggest changes they had to make was cutting out entertainment like food and drinks He talks about how tough it was saying no to friends in family in order to pay down their debt so aggressively We discuss the struggles with getting your spouse on board with this new financial plan He said his biggest mistake was focusing on the process and numbers vs the outcomes, emotions, and the “why” behind the plan Once the subject went from percentages to a discussion of having more time with their kids, Andy’s wife became equally as fired up about the journey A powerful exercise he discusses to help with this is to just sit down with your significant other and talk through your perfect day/life if money wasn’t an issue Then we swap to start discussing how their life is changing now that their finances are in a good place and they’re starting to build their financial independence lifestyle With their kids starting school, his wife has begun a home organization business which is just another great example of how you will discover your true passions when you step away from a full-time job and those passions will probably bring you unexpected income We then shift the discussion back to their debt pay-down where Andy gave us the tangible steps to paying off their house in 4 years The first piece was a $150k down payment after a lot of aggressive savings That got their mortgage down to $200k They continued their monthly expense reviews Every bonus or additional dollar they received they put towards the house Andy’s wife actually stepped completely away from her day job to be a stay at home mom with $80k left on the mortgage That mortgage was completely paid off a little over a year ago That down payment that they had been saving up for was all in cash after some shady dealing Andy had with a financial advisor Andy admits that these were major financial mistakes but worth it due to the amount he learned throughout the process Other ways Andy recommends getting your spouse on board with financial goals is simply leading by example along with the help of the great modern FinTech tools out there such as Tiller, YNAB, or Mint If you’re significant other has a taste for fancy things and nice things seems like a real priority, Andy suggest simply writing out items to show what can and can’t fit and not make it just theoretical For him and his wife, one of these examples would be travel hacking where they turned the journey to getting these elaborate trips paid off with points into a game but also warns that credit card hacking should only be done if you’re really smart with credit cards We then shift gears to paying for their children’s education They don’t plan on providing all the money for their college expenses but between their 529, scholarships and working they believe their kids can graduate debt free He also admits that traditional college may not be the answer anyway and calls out the student debt epidemic in America Andy himself has an undergrad in communications and a masters in business but admits many people don’t need a college degree For the digital nomads, he thinks it can be a great idea but cautions that you should be extremely passionate about your craft because if you don’t love it, you’ll probably quit because the money won’t be there in the beginning. Now Andy is focusing on the next level of his journey after feeling really solid on the basics and that next piece for him will be rental properties He admits that the debt-free mentality makes it hard to take business ventures and loans but the plan is to buy a rental property with mostly cash savings His number one tip for people on their financial journey is taking time out to talk to your significant other and family about what their dreams are and what drives them in order to make a plan you can be passionate about Key Takeaways Life has curve-balls: Andy and his wife were spending away without a care in the world until life happened. It’s all too familiar that some life event pushes people to adapt and overcome. We hope you’ll make the decision for positive changes before it’s forced on you. Find middle ground: Andy was hyper-focused on saving money, his wife still wanted to travel as we all do. They made it work via travel hacking. It would have been easy for one side to try to win but instead, they walked away both as winners. Know your audience: Listen, most people in this community are guilty of being way too excited about numbers but not everyone is inspired by math. If you don’t want to be on this financial journey alone, you need to find a way to talk to others and get them in lock step with you. Call to Action Sit down, no phones, no television. If you have a significant other, friends, or family, sit them down with you. Now, walk through a perfect day, month, etc where money isn’t a concern. Not hit the lottery style but just imagine you had the same income you do now but you weren’t working. What would your days look like? Be detailed. Write it down and reference it often. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android   Links from the show: Our Favorite Travel Rewards Cards Book: Total Money Makeover Podcast: Marriage Kids and Money Contact Andy: Blog: Marriage Kids and Money Twitter: @AndyHillMKM Facebook: Andy Hill MKM Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)

On today’s episode, Cody and Justin are joined by Monica from MonicaLouie.com. She tells us her inspiring story of tackling debt and putting family first. Monica and her husband both came together after college with some debt and Monica wasn’t a saver naturally. Her husband brought those characteristics to the household and she took to them quickly and soon started leading their debt pay down efforts. While on her way to becoming a mother of two, she decided she wanted to be able to spend as much time as possible with her children and step away from the workforce. Unfortunately, even though they had made great strides on their spending, one income just wasn’t enough. So Monica started a blog and experimenting with Facebook ads. She then started her own Facebook ad consulting business in 2016 with her as the single employee. Today she employs 13 and is on the fast track to being debt free. But you don’t want just an overview, go take a listen to today’s episode and let us hear what you think. Episode Summary Grew up with a single mother where money was often a struggle and she knew she wanted a different life She took the traditional college route but struggled some after graduating Then she found herself in credit card debt A couple of years later she had a good job, got out of debt and vowed to never get in debt again. When she met her husband, he was frugal and she became conscious of saving for the first time They were on a good steady path and then she had her first child and her priorities shifted She decided she wanted to be a stay at home mom so they started saving really hard Then she was pregnant with her second child and stepped away from her job A couple of months into this, they noticed their savings starting to decrease a looked for something to help out On top of this, they had over $300k in debt including their mortgage Within two years they had paid down $120k in debt Her husband had reservations about sharing finances because she was more of a spender and he was a saver so she made it a point to build that trust by being financially responsible The idea of her blog came from people asking questions about how she burned down so much debt With this first blog, she started discovering Facebook ads and noticed she had a knack for it Then her fellow blogging friends started asking for help with Facebook ads In 2016 she ended up selling her blog and becoming a full-time Facebook ads coach Facebook ads are great for just broadening your reach as well as funneling people towards paid content or even a transition funnel to get a customer to free content which will then get them to paid content Therefore often it’s best to save your Facebook ad promotions for posts with affiliate links We also discuss the ever-changing landscape of Facebook ads with new features and algorithm tweaks Her business has already grown from her being the single employee to a team of 13 They’re still paying down debt with the goal of being debt free by age 40 With her job being location independent, even if she’s working they can live a lifestyle very similar to one many expect when they are financially independent The business hasn’t been making a ton of money right away because she’s been growing the company but is now transitioning to focus on the profit We also discuss the example she gets to set for her kids as they see her make income from home doing something she really enjoys Then we get into some more technical aspects of how to do Facebook ads Some of the tips she recommends is testing against different groups and optimizing the ads by constantly testing and tweaking Facebook can also help you find a look-a-like audience which is where you feed Facebook some information about the audience you already have and it finds more people like you She recommends static images when you are looking for someone to click on a blog post Then using videos for things like webinars She is also starting to test expanding the business to Instagram and Pinterest Her #1 tip for people starting a business or trying to reach FI focuses on building goals Key Takeaways Savers can be made: Many of us in gravitate towards this content because we have always been frugal but that’s not a requirement. You can learn to be a saver. It’s a skill set like any other. While some are naturally more gifted, anyone can become expert with enough training and practice. Taking a step back can open up options: Often people are terrified of quitting their day job due to concerns about their money not lasting. That’s a fair concern but realize when you stop spending 50 hours a week on a job you don’t love, you may discover a passion that given time will become profitable. Yes there are bad unknowns, but there are also positive ones You are worthy of an investment: People invest in businesses, their children, maybe even their employees, but we are so reluctant to invest in ourselves. The world moves at too fast of a pace to be complacent and frankly you deserve some investing too. Call to Action Consider giving in and buying that premium content or tool that you believe will help you grow your business, land your dream job, or just bring happiness to your life. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android   Links from the show: Book: Profit First Free Facebook Ads Course: MonicaLouie.com/FIshow Contact Monica: Blog: MonicaLouie.com Twitter: @MonicaRLouie Facebook: Monica Louie Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)

On today’s episode, Cody and Justin are joined by Joel from FI 180. It’s so inspiring to hear someone who had real spending issues and quickly got them under control. Joel wasn’t forced to in order to take on debt, he had a wake-up call in the form of a car crash involving his wife. Unfortunately, sometimes it takes a potentially life-altering event to step back and reevaluate your life. Thankfully Joel’s wife is fine and they don’t miss their old spending ways. The transition they made was remarkable. They were set for a life of working into their 70’s and quickly make changes that have allowed Joel to retire at 34 and his wife the option to do so whenever she chooses. Well, go take a listen to today’s episode and let us hear what you think. Episode Summary Joel’s parents never made a lot of money ($35k per year) Out of college though Joel started making ~$55k Never having money before he just started blowing it all on crazy things like $3500 t.v. His wife has always had more financial restraint Joel simply didn’t know how to manage money because he had never had it but wasn’t in debt Joel’s wife didn’t want to merge finances because of his spending habits To combat his spending, he would just continue to work more About 6 years ago after his wife got in a bad car wreck Joel made his “financial 180” He states that he really doesn’t miss the spending since making his changes That lavish spending just became normal and wasn’t fun anymore Now with low spending, anything lavish really seems like a treat Joel comments on how people don’t see from the outside how much strain the work it takes to live a lavish lifestyle can take on your life when you’re simply viewing a lavish lifestyle on Facebook/Instagram In 2012 they spend $107,000 $16k shopping, $13k food, $12k travel, $12k bills, $11k cars, etc Now they spend between $25k-30k per year Their first big move on lowering expenses was going to a one car household They continued their transition to lower spending by targeting one thing each month It took them about three to four years to fully make their transition Joel states that for them cooking for themselves was the hardest part of the transition They cut cable, extra car insurance, water delivery, and home monitoring and other things included slowing internet speed, lowering cell phone data package After one year they cut an additional $1,080 a month from their budget By 2015 they lowered their spending to $34k per year They actually went too far and got over 80% savings rate and decided that was the deprivation Joel has stepped away from working but his wife enjoys work and continues to do so We discuss how the retire early part of FIRE gets all the attention while the Financial Independent part is much more important Joel is 34 and they are considering having children but aren’t sure He talks about how not having a job doesn’t ensure you’ll be productive that it still has to be something you’re motivated to do It took Joel a few months to build that structure that led to a proactive day Joel even discusses feeling younger since retiring We then talk about how Joel built up the confidence to quit his job He came up with the quote that “His worst case scenario, is everyone else’s everyday scenario” That means that if he needs to go back to work, so what, everyone else works, it’s not that scary They also decided to pay their house off quicker to remove that fixed cost and make it a little less scary We end the episode with Joel stressing finding a good work-life balance and not focusing so much on one particular number Key Takeaways Having money can be a problem: Joel came out of college with decent pay and no major debt worries. Sounds good right? Well, he also wasn’t prepared for how to handle it. He wasn’t forced to learn frugal habits early on. While we may never feel sorry for someone in Joel’s position, it is a real thing to be cautious of. Don’t wait for your crash: A crash involving his wife led Joel to make these radical changes. Luckily everything turned out ok, but it is often too late to make changes after a major disaster. Build a life that is resilient to trauma and unforeseen struggles. You won’t miss the money: You may be really nervous about reducing your spending. Won’t it be painful? Take it from Joel, your spending becomes normal and unexciting. When you become more intentional, these treats are much more meaningful. Reducing your spending will actually add joy to your life. Call to Action Write out a 6 month calendar. Pick one subject area for each month. Reduce that spending or at least analyze it one month at a time and compare your end progress with where you started. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android   Contact Joel: Blog: FI180.com Twitter: FI180 Facebook: FI180 Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)  

On today’s episode, Cody and Justin are joined by Ryan Jacob who has one of the more gutsy stories you’ll hear. Ryan has decided to step into a mini-retirement or super lean FIRE plan in order to get away from his soul-crushing job. He was in an extremely corporate setting with big money in his future but decided instead to take his nest egg of just over $300k and call it a day. Instead of a cubicle he now spends most of his time on the water catching some awesome fish. It’s obvious to see that Ryan is looking for more than fishing in his retirement and is itching to start his own business. Want to know what kind of business he has had and will have? Curious what life looks like when retiring on $300k? Well, go take a listen to today’s episode and let us hear what you think. Episode Summary Grew up middle class with a stay at home mom and his dad was a self-employed contractor His mom was a saver while his dad was a saver and his mom’s habits rubbed off on him He would always save everything even as a kid Ryan even started investing money at age 14 after he’d saved up $2k through a custodial account with his mom It’s the late 90’s during the dot com boom His mom sets him up with an adviser and he lost everything in that dot com bubble That experience actually pushed him to learn more about the market instead of discouraging him In college, he studied finance and he realized the adviser who was overseeing money for the whole family was actually doing some shady investing practices Ryan really wanted to start up his own business even at 18 but his mom pushed him to go to a traditional four-year college We talk about the huge gap in financial education in high schools and college He worked for 4 years after college as a consultant and an analyst at a management consulting firm making around $60-70K saving around 40% Part of that career path required an MBA so he went off and did that and came back to a salary of $110k-$120k Ryan talks about his path  wasn’t a flip of the switch that it was a very thorough and long term plan Even though he was marching towards retiring early he didn’t discover the financial independent movement until just under 2 years ago Ryan stepped away from work after fulfilling his last commitment with his company after saving up just over $300k He’s aware that he’ll probably need to work again but he’s in no rush A really interesting take was his discussion about how if he’d kept working longer and saved up so much to have a safe retirement, he wouldn’t have the push to start up his own business which is a big goal of his In college, Ryan had started up a business which was a painting service including a van that he paid $75 for The group made $70k over that summer From that point, we swapped into digging into Ryan’s investing strategy His first recommendation is to avoid the percentage based advisers and swap to one time fee-based advisers He also recommends robo advisers such as M1 finance, Betterment, or Wealth-front The number one recommendation though is Vanguard for their index funds Vanguard even has their own advisers We then transition into what Ryan was looking into doing in retirement His goals are related to ocean fishing, hunting, reading, spending time with family, brewing beer, and start a financial advisor business You can really tell how refreshing it is for Ryan to get to reconnect with his family after his profession took him away from them for so long He rounds out the episode by pleading with people to understand that the path to financial independence isn’t common and you’ll have a lot of people try to stop you or second guess but to stay the course and be confident Key Takeaways There is a middle-ground: Notice how Ryan accepts that he may need to go back to work? That’s totally ok with him. He chose to put himself first and get out of a toxic situation. He could have stressed and plunged through several more years of misery but decided instead to find some middle ground. Family time is ticking: One of the major issues with retiring normally is you get so little time with your family because at that point they are so old they may either be dead or much less functional. Set aside some time in your life for family now. Jump-ship moments: Ryan had a great plan on when to walk away because he knew he could retain his bonuses and have college paid for if he would just stick it out to a certain point. That point then became an easy way for him to retire since he met all his obligations. Keep an eye out for these jump-ship moments for yourself. Call to Action Take a good hard look at what you image your most rewarding day to look like and use that as your initial FI goal instead of stressing about the money for the additional things like entertainment. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Bogleheads   Contact Ryan: Facebook: Ryan Jacob   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)  

On today’s episode, Cody and Justin are joined by Kieth aka The Wealthy Accountant who went from a small town farmer to a multi-millionaire tax professional. Want to know how good he is? Well he’s good enough to have been selected by Mr. Money Mustache to do his taxes. That’s a heck of an endorsement. Keith’s story is truly amazing. The way he self educated himself is as relevant today as ever with the access to training and the changing job landscape. Hear how he started his business and became financially independent way before that was even a common phrase. Episode Summary Keith grew up in a farming family in small town Wisconsin They didn’t really have anything to spend money on so they lived frugally The family farm ended up going into bankruptcy when he was 18 In high school he started studying the stock market crash of 1929 and became really passionate about investing and he started investing at 18 He also started doing the books on his dad’s agricultural repair business That eventually turned into fellow employees asking him to do their taxes Before long he had 50 clients with no overhead We talk about how different the interest landscape was in the 80’s He talks about how excited he was to get a 10% mortgage In totality he’s only ever worked for someone 14 months At about 32 he realized he had accumulated $1M and he was married at this time This being the late 80’s he had a $540/mo house payment and they lived on less than $10k He spent all day outside of tax season just sitting around reading books and learning In reality he never got a college degree but didn’t need one Even though he didn’t have a degree he spent a decade just pouring over books He was a financial independence guru before FIRE was even a term The first blogger he really ran across was Mr. Money Mustache In fact he even did Mr. Money Mustache’s taxes! He points out that before you get to stressed out over tax loop holes and maximizing everything, to stop and realize you’re probably always going to make some kind of income and if you’re serious about this path you’ll likely end up with more money than you’ll ever need We then swap this discussion to the tax specific tips He talks through standard 401ks, backdoor roth 401ks and mega backdoor roths We also get into things like Cash Balance accounts available to self-employed members Keith also mentions that standard brokerage accounts get a bad rap and shouldn’t be overlooked but still recommends filling up your 401k and IRA When coming up with a tax strategy for someone he talks about how important it is to look at a person’s scenario on a long term view and not just year to year You won’t want to miss the deep dives into the mechanisms behind the different IRA contributions, cash balances, and profit sharing which can take you to many times the $19k 401k and $6k IRA limits Then we get into the discussion of tax moves you can make with non-qualified accounts like your standard stock market account that’s not a 401k or a IRA One thing Keith points out is that these non-qualified accounts are tax advantage in a way because when you die, you’re beneficiaries won’t have to pay capital gains tax on all those earnings. Your kids get to take over those shares at the price listed on date of death and all those gains are forgiven from any tax burden From Keith’s standpoint most tax loss harvesting is ok but not worth paying for On the flipside, he’s a huge fan of harvesting gains Harvesting gains is when you’re in the 0% tax bracket and have some room to give so you purposefully sell some shares for a profit and capture those gains without paying taxes on the gains (STOP AND READ THAT LAST BULLET AGAIN…SO POWERFUL) Keith also urges you to consider what your retired minimum distributions can climb up to be if you just let them sit in the traditional accounts until 70 Stay out of debt, invest, hit your company match, start young, and don’t be afraid of putting money into those non-qualified accounts. Keith points out how much powerful your impact can be on the world if you take care of your finances early and those non-qualified accounts will be a big part of that We also tackle the ins and out of employing your children and setting up retirement accounts for them at a young age Rounding out the show Keith’s biggest tip is simply to persevere and not to listen to all the negativity in the world Key Takeaways Success comes from all corners: How cool was it that he started this from his dad’s agriculture repair business which came about due to a bankrupt farm? This is another example that you just have to keep your eyes open and never doubt yourself. Invest in yourself:Did you keep track of how much time he spent educating himself? He did all that at no cost. Investing in yourself is important but also don’t settle in on the idea that the only avenue is traditional college programs. A financially stable you, is a more powerful you: Here we have another example of someone explaining the power of giving that financial independence can bring. When you become financially stable you can make real impact on the world that surrounds you instead of always searching for solid ground. Call to Action Speak to a tax professional, research some tax codes, or at least read through some tax blogs and build out a tax plan that looks at your whole life and not just focus on your current year. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android   Contact The Wealthy Accountant: Blog: Wealthy Accountant Website Twitter: @WlthyAccountant     Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)  

On today’s episode, Cody and Justin are joined by Leif from Physician On Fire. Leif didn’t even discover the idea of financial independence until he was 40 but has truly hit the ground running. In just three years he has created a massive online following where he helps reach high-income earners to educate them on finances as well as spread the message of giving. He donates 50% of all blog-related income and has donated up to $100k in a given year. Stay tuned to get Leif’s background and take on topics such as backdoor Roth IRAs, discovering financial independence at a later age, travel hacking, and his donor fund. Go give it a listen and let us know what you think! Episode Summary Leif was born in 1975 and began understanding money even as a 5-year-old He came from a family of physicians and knew that’s what he wanted to do as well At age 30 he was completely finished with schooling and residency and became an anesthesiologist He was able to keep student loans low by sticking with in-state schools, earning scholarships, and a college fund his grandfather had left him At age 30 he had a slightly negative net worth and didn’t discover the idea of financial independence until he was almost 40 Even before discovering financial independence, he was saving about 50% of his take-home pay but it was intentional The discussion then transitions to the topic of financial advisers targeting high-income members like physicians and possibly taking advantage of them He reaches other high-income earners to help them learn how to invest for themselves and even find a local financial adviser through his blog and Facebook groups One of his Facebook groups is for anyone in the “Fat FIRE” community which he describes as anyone looking to be able to spend $100k or more per year in retirement He then starts breaking down tax advantage strategies especially as they pertain to high-income earners including the backdoor Roth IRA and Mega backdoor Roth Then he describes how he got into blogging and making money through this other source It wasn’t actually until a little over 3 years ago that he discovered financial independence for himself and saw The White Coat investor as a role model in the space His hope was to provide advice similar to White Coat Investor with a voice more similar to Mr. Money Mustache When he first discovered financial independence he had a five-year plan which would have been around 2021 but instead, due to the success of the blog and the realization of his financial situation, he went part-time almost right away We then dive into how he keeps his spending reasonable because so many high-income earners aren’t able to maintain a high savings rate even though they have so much money to work with which he credits to living in reasonable homes, driving cars for 8-10 years, and only eating out a couple of times per month They were spending between $60k-$70k per year for total expenses with a paid off home One area where his family has found efficiencies with spending is through travel hacking Travel hacking just means finding creative ways to use points and miles from things like credit cards and promotions to travel for cheap or even free He has done this for trips with his family to places like Hawaii and Honduras. His family spends around $5k per year on travel but estimates that number could be closer to $25k if he didn’t take advantage of travel hacking We then dive into his goal to spread a message of giving back and his own experiences with doing medical mission work with his family Then we discuss the mechanics behind a donor fund which allows him to donate money now and disperse it in the future where he’s given up to $100k in a given year One advantage of these donor funds is that it allows you to donate investments as well as cash so he was able to donate assets that had greatly appreciated to the fund so he was able to avoid capital gains taxes while still being able to donate a large sum for a big impact This vehicle for charity allows him to donate more money than he could if he simply gave cash but is not some way for him to earn more money or benefit himself in any way One note is that once you’ve put money in the donor fund, you can’t change your mind and take it back When we asked about other advice he would give people he describes being prepared in case you don’t love your job in the future because those fortunate enough to love their job may not see the need to save now but if something happens to that career, it will be too late to fix things if you wait till they break You also won’t want to miss him breaking down his love for curling (no not the bicep workout) and some interesting curling moments Key Takeaways Make a difference: The number one takeaway for this episode was the insight Leif gave about donor funds and his medical mission efforts. Sometimes a pursuit to FI can seem like a selfish one but when you consider how much more you can do to help others when you have an abundance, it’s obvious how powerful it can be. Never too rich: We loved that Leif is still excited about things like travel hacking even though he has plenty of money to pay full price. It’s simply a commitment to not being wasteful and making every dollar mean something. There is no single path: Every episode we’re amazed to find yet another completely unique path to financial independence. Leif had a negative net-worth and didn’t discover the idea of financial independence until 40 built an amazing path to FI despite all of that. Call to Action Find a good cause and donate something. Money, time, knowledge or stuff. Just give something. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Best Travel Hacking Credit Cards FAT Fire Facebook group Physician on Fire’s Facebook group Mad Fientist article about Roth conversion Need a cause to donate to? Here’s one of our favorites: Ciudad De Angeles Orphanage   Contact Physician On Fire: Blog: PhysicianOnFire.com Twitter: @Physicianonfire Instagram: @Physicianonfire   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)  

On today’s episode, Cody and Justin are joined by the dynamic duo of Joel & Matt from HowToMoney.com and the How to Money Podcast. The guys met the How to Money crew at FinCon and the rest is history. This fantastic conversation unwraps their backstory and tons of tangible tips. From groceries to real estate, to building a community for their young families, this episode is great for all audiences. Go give it a listen and let us know what you think! Episode Summary Joel discussion starts out describing growing up around financial stress in the household and how that led to a desire to be financially stable Matt had a better education of finances growing up and had the seed of financial independence placed in his mind We then discuss the dynamics of teaching our own parents about money which can be touchy and awkward Even when discussions are natural you have to respect and understand that your views and beliefs may just be too different to agree on, but that doesn’t mean you can’t support each other The online communities are so powerful because they give us a venue to find  people who view finances the same way and help spur on growth and knowledge The guys discuss the danger of getting hyper-focused on the numbers of financial independence and not enough on the lifestyle you want to have They also discuss a shift in prioritizing time vs prioritizing money the further they get into their journey Matt and Joel also call out several things that just simply won’t show up on a spreadsheet such as proximity to friends, stress, and convenience Matt’s financial journey really took off after finding Dave Ramsey and while he doesn’t agree with everything, it gave him a lot of fundamentals Matt also credits budgeting which gives you a lot of clarity on where your money is going and highlighting where you can improve your spending Joel was always cheap and willing to do things for less His financial journey really took off when he got heavier into real estate where he would live in a house for 2 years, do renovations and move onto the next one. We then shift gears and unwrap Matt’s grocery budget for a family of 5 which they keep to $450 per month His main three tips are avoiding processed or prepackaged foods, cheaper cuts of meat such as bone-in chicken thighs that also have more flavor, and watching the overall quantity of food you’re eating since most Americans overeat Joel mentions another tip which is splitting entrees when eating out since the portions tend to be way bigger than you’d eat at home by yourself The next tangible money saving we get into is biking Biking gives you a workout, takes care of your commute, and saves you a ton of money Joel recommends looking into an electric bicycle for people who maybe have a commute that’s over 10 miles. While they’re more expensive you still can get a workout with the pedal assist and still save money Joel recommends ElectricBikeReview.com for helping you pick the perfect electric bike Matt is down to a one car family and Joel is getting close as well Joel and Matt discuss how they keep the costs of raising children low through creating a community which allows the parents and children to get together and have activities without the costs like registration fees We then jump deeper into Matt and Joel’s real estate investing They talk about renting out an extension on one of their houses and Air BnB in the other Even beyond real estate investing, they both agree that it’s crucial to avoid the urge to keep looking for a bigger house for yourself as your family grows We finish off the episode with Matt urging people to focus on the big areas of your life like rent or mortgage before worrying about things like cutting coupons Joel explains how frugality gives us options Key Takeaways Look beyond the numbers: We loved the takes both guys had on all of the aspects that are so important to financial independence that simply isn’t listed in your spreadsheet. Being able to have dinner with friends without the stress of a long commute or being able to drop your kids off via bike. Numbers are very important but make sure you’re saving for a life you actually want to live. Grocery guidance: Love hearing grocery tips from someone with a full household. It can be easy to dismiss someone’s advice who is single but when Matt talks about living on $1 per meal / per person and that including young kids, well that gives credibility. So shop the edges of the store, watch your serving sizes, and maybe lower your meat footprint for a lower grocery bill. Ease your way in: They both gave tips about things that help you transition to a more financially responsible and healthier life. The first was bicycles. Maybe biking long distances is too much right now but an electric bike could help jump-start that transition away from cars. The second was with Air BnB or renting out an extension of a home. This is a much easier pill to swallow than finding and remodeling a second home for renters. Call to Action Make a list of things that are important to you now and that you envision being a priority in retirement that don’t have a number associated with it. Proximity to family, time with children, etc. Print that out and put it in a place you’ll have to look at at least once a day! Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Find your electric bike!   Contact Matt and Joel: Their Blog: HowToMoney.com Their Podcast: How To Money   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)

On today’s episode, Cody and Justin are joined by Captain DIY as he breaks down his journey to becoming a professional electrician and how that intersects with his journey to financial independence. Cody and Justin have had a chance to hang out with the good Captain a couple of times including down at a Camp FI event. Go give it a listen and let us know what you think! Episode Summary Started money journey 8 years ago when his first child was born Their goal was to save $20k before their son was born He found himself spending a lot of his excess money on musical equipment His biggest change though was bringing his lunch to work and also his toughest He grew up learning how to build things with his dad but didn’t see it as a passion and he went to school for graphic design He ended up spending 6 years taking community classes But his leap to being an electrician came from working at a sign shop and realized he might  be worth more to them if he was a licensed electrician to wire up the lighting He recommends starting with small projects to get into the DIY spirit such as changing out handles or painting He talks about the triple benefit of DIY which is saving money, getting a workout, and a lot of self-satisfaction Then he jumps into the potential of vocational high schools and apprenticeships vs traditional college and the debt that typically comes with it He also breaks downs the rates of pay for trades work that you do on your own vs working for another company which is about 4 times He recommends shopping around and talking with multiple tradesmen before hiring one to protect yourself from getting taken advantage of Key Takeaways Understand Value: He saw an opportunity to bring more value to his employer at the sign shop by diversifying his skill. It’s always important to know what your boss is looking for and how to make yourself more valuable. Benefits in bunches: It seems like most skills and routines that we do for some benefit also bring 2nd and 3rd order impacts. As he said, DIY skills help in much broader strokes than just finances. Pride in your product: It was clear that the reason he has no trouble finding work is that the product he delivers is top-notch. Whatever work or service you do, be honest, upfront, and deliver what you promise. Just think of how much even one bad review poisons your outlook on a product or service you’re considering. If you want to build your brand, it has to be a brand people trust. Call to Action Make or fix something with your hands. There’s just something therapeutic and rewarding to creating something or returning value to something that was previously useless. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Electroboom Exploding Guitar Video   Contact Captain DIY: His Blog: DIY2FI.com Twitter: @DIYCaptain Instagram: @DIYCaptain   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)

On today’s episode, Cody and Justin are joined by Timika Downes from The House of FI podcast to share her amazing journey. Her story involves marriage, divorce, children, military service, career changes, and six-figure side hustles. Her constant urge to better herself is truly remarkable and we think no matter what your journey is or where you are on it, this episode has something to offer for you. Time to go listen, comment and show us some love with those ratings.  Enjoy! Episode Summary Born to immigrant parents growing up in projects of Boston In the 5th grade, she was a part of a program where she began attending school in a much more affluent neighborhood When she got in high school, they moved to a two family home and began house-hacking Her parents instilled saving money but no deeper financial discussions She racked up about $94k in debt over the course of her three degrees Timika ended up with a Master’s in Accounting and a Nursing degree She talks about how she plans on handling her children’s education based on what she learned from her experience There was a discussion about a situation she was aware of where the parent’s had different payouts they would support their kid with based on how profitable the degree was they went after. She got married earlier on and they both made good money and bought a house but they never really managed their money or really worked their way out of debt or built wealth That marriage ended in divorce at age 30 and was a wake-up moment for her financially She also joined the military which greatly helped with her college debt She talks about the great experience the military was and her commitment was 1 weekend per month and a two or three week period every summer and she got a $50k bonus plus pay on those duty weekends. After being remarried and having a child, she realized she wasn’t going to stick around for 20 years and get retirement so she stepped away from the military. Once she got debt handled she started looking at side hustles and entrepreneurship Her first effort was for a breastfeeding product to help women feed at work Unfortunately, in the end, she realized the profit margins just weren’t good enough It did, however, teach her how to handle websites and social media campaigns Her recommendation is to spend your time before you spend your money when looking at a new business idea Then she found a very successful business venture in a head lice clinic She got the idea after going through a lice outbreak in a school she was working at as a school nurse Her clinic utilizes a machine that is leased through a University program that dehydrates the eggs of the lice You purchase rights to a region for the clinics and now the business is moving to a franchise model Lice Clinics of America is the organization she utilized to get started She also mentioned that there is a mobile version of the business people can get involved in now In her first year, the business made over $100k of revenue She continues her personal growth by starting a blog, podcast, and even taking coding classes Her tangible tip is to always look at a problem creatively and deliberately and realize that your journey to financial independence is a marathon and not a sprint Key Takeaways Paths aren’t always marked: She ended up with three degrees which led to debt but it was part of the process for her to find her path. Some people are lucky enough to have a calling from the time they can talk and others need a little more exploration. Don’t compare yourself to others, just focus on finding your path. Failure is our best teacher: This is one of the most reoccurring lessons I’ve ever seen with entrepreneurship. Timika didn’t strike gold on the breastfeeding business in terms of revenue but the lessons she learned were priceless. Invest in yourself: I absolutely love her commitment to self-improvement. Whether it be skill development, reading, or simply focus. She continuously looks for a way to refine her self and her life. That’s something we should all strive to do. Call to Action Go out to a site such as Skill Share or Code Academy and take some low-cost or free classes. Find one that resonates with you and continue developing that skill. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Lice Clinics of America Travel Rewards Contact Timika: Her Blog: The Reluctant Frugalist   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)

Today’s episode is an extra special Valentine’s day episode; Cody and Justin throw out all common sense by letting their significant others come on and give you an unfiltered behind the scenes look at what it’s like to date someone so determined to retire young. While the girls take plenty of jabs at the guys, we think you’ll also get some great insight on how to make money conversations with your significant other much more productive and approachable. Running behind on a Valentine’s day gift? Just fire up this episode and grab a glass of wine for the perfect date night! Oh, and don’t forget to say happy birthday to Cody! Episode Summary Laura’s parents weren’t into personal finance but she did understand being frugal and buying only what you need Leslie’s mom was big on spending money on experiences and things that were important but at the same time spending smart When Leslie first met Justin she noted how he asked even on the first date was asking questions about what her spending habits are Justin also used a coupon in combo with $2 beer night on their 2nd date Laura talked about her first dates with Cody involved using these free vouchers from Cody’s dad Laura sometimes felt like she was being difficult because she knew she was recommending a restaurant or activity that Cody wouldn’t normally do Then they start tackling positives on meeting someone so frugal Leslie talks about how much more travel it has opened up a ton of travel and how it’s not so much about the total of money but more about maximizing the money so maybe you go on two trips instead of one Laura talks about how dating Cody has changed her habits in relation to finances A common theme is being more intentional with money but at the same time teaching the guys to not stress so much over the small stuff Leslie talks about the importance of us splitting things and how you don’t have to feel like one person is pulling the weight Justin and Leslie say they probably speak about money in some form almost daily Laura mentions that sometimes it can seem overwhelming to talk about finances so much but she appreciates it and it’s better to be aware Then the guy’s swap the conversation to how the ladies have changed their lives Cody mentions things like charity and international volunteering Justin talks about opening up a little on the groceries and when something seems important to Leslie to just do it since they’re already so optimized Justin and Leslie discuss how their financial discussions first started which was spurred about because of Leslie changing jobs For Laura, Cody tried initially with straight numbers which didn’t really work but then once he introduced her to travel hacking it had her hooked The approach of bland numbers was also an unsuccessful attempt by Justin but he too realized the outcome was key. They started focusing on how they wanted life to be and things were a lot clearer Laura talks how Cody talked her into going to Camp FI by spinning it into a vacation Then they talk about how important it is for the guys to also support their passions Laura dreams of working in public works in places like Cambodia Then they discuss how the ladies feel and trust the numbers that the guys are steering to and how they’d feel about not working for upwards of 60 years Leslie & Laura feel confident and also recognize how flexible they and their careers are They then discuss what people who aren’t as focused on financial independence or as experienced would like to hear from things like the podcast Laura & Leslie talk about tips to get your spouse on board with a journey to financial independence such as recognizing things that are important to the other person and not crossing that line when drawing down expenses Key Takeaways Appreciate their sacrifice: It’s often easy to look at yourself and feel proud of how you might be shaping up the finances for you and your significant other and totally forget the sacrifices they make by accepting this lifestyle you’re presenting. Sure it’s a responsible choice but that doesn’t mean it’s an easy one. You’re not normal: W Don’t get me wrong, being normal is overrated but it’s important to have some self-reflection. Understand that the life you want to live is a strange one that might even seem insane at first so be patient and don’t expect full agreement on day one. Middle ground marks the spot: A  You probably notice a common theme with these key takeaways and the episode in general. Meet your partner in the middle. On these financial journeys, we can develop tunnel vision and so focused on numbers that we forget the emotions associated with them. Monitor your partner’s feelings, adjust when needed and remember that your working career is hopefully short but this relationship needs to last forever. Call to Action Go discover what your partner really wants in life, what does a perfect day look like, what are their passions? Now use these as the motivation to have them get in lock-step with your financial journey and  yes… you might even have to back away from those beautiful spreadsheets. Join the Community We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community! Sign up for our exclusive newsletter Join our Facebook Group Leave us a voicemail Send an email to contact [at] TheFIshow [dot] com If you like what you hear, please leave a rating/review! The FI show on iTunes The FI show on Android Links from the Episode Camp FI Travel Rewards   Contact Leslie & Lauren: Leslie: Check out her beautiful Instagram account and watch out for behind the scenes content with Justin Instagram: @LeslieHGreen   Lauren: Shoot her an email with questions about international works or how she survives Cody’s relentless energy Email: lkowalchek16 [at] gmail [dot] com   Learn More About Your Hosts: Fly to FI (Cody’s Blog) Saving-Sherpa (Justin’s blog)