014R - Friday Roundup

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Transcript

Time Speaker Text Tags
0 - 4 Jonathan Mendonsa Hi Brad. Welcome back to the studio. How you doing today man.
4 - 11 Brad Barrett Hey I'm doing well. We've had quite a morning here in central Virginia. We had a big snowstorm I know you lost power. So it's pretty amazing.
11 - 19 Jonathan Mendonsa We're almost there. We're crawling to the finish line. Spring is almost here just got to get just a few more days and you lose power this morning. Fantastic.
19 - 25 Brad Barrett I should say. Ice storm actually we didn't have we didn't have too much snow by May but we had a bunch of ice. But yeah it's been crazy.
25 - 50 Jonathan Mendonsa Totally ridiculous. OK so this past Monday we had the episode with Miss Mr. 1500 from 1500 days and Carl was walking us through the phases of FI how to build a money philosophy. And you know designing that post FI life. And I really found that fascinating partially because it's something we all need to think about and partially because he's he was right there at the door and I think he's gone through it and is now on the other side. Am I right about that Brad.
50 - 70 Brad Barrett Yeah. He I believe he said that you know he's at the point where he's nearly giving up his job entirely. I think he's currently working on a three day a week work week. But he is you know at FI as far as his number. And now it's just a matter of being entirely out on his own.
71 - 93 Jonathan Mendonsa So I always wonder myself how much farther out am I before I'm in the position where I'm making the choice. Similar to what Carl was able to do and you know I feel like for most people it's if you're actively pursuing this it's a 10 to 15 year plan something like that. From the time from day zero it's a 10 to 15 year plan. Is that would you say that that's something that's pretty close.
10yearstogo
93 - 112 Brad Barrett I think it's very realistic certainly. I think you know it's all based on savings rate and you know that kind of stuff. But you know your income etc.. But yeah I mean 10 to 15 years would certainly be very plausible for most people who are really taking this as a lifestyle. So I know your time line hopefully is a little shorter than that right.
savings
112 - 133 Jonathan Mendonsa You have to rely on it a lot. You know I think when I get closer to it and I've got that number in mind I'm going to like do something just to one up him and be like 8 hundred days then I'm going to have like a partner Web site just beside ChooseFI called 800 days to freedom and I'm just going to. Any time he posts something I'm going to chop the days in half and throw it half the days.
133 - 137 Brad Barrett In your face.
137 - 138 Jonathan Mendonsa It's coming.
138 - 221 Brad Barrett Nice. Yeah I really enjoyed this episode. You know it wasn't our normal type episode which is you know jampacked with actionable tips. But I love the philosophy. I think that is is you know as people have heard on this podcast I talk about that all the time. That's that's really my big thing. I think the mechanics of FI, You know once you get a handle on it it's pretty easy honestly. But but it's wrapping your mind around you know what you want to do what you want to get out of life. I mean those are the big questions so. And you know most people just kind of go about their normal lives and just you know go from one day to the next and don't really think about those larger questions. But those of us pursuing financial independence really have to. And you know because otherwise you're going to reach that number. Like Carl said you're going to reach that number and it's not going to bring you happiness in and of itself. So you need to figure out. I mean truly what life is all about. And you know if I can just paraphrase a couple of quotes I'm going to largely quote Carl here. But he said the whole thing isn't really about money. It's about living the right way. And money is just a facilitator to that. The true goal out of this whole journey isn't money it's just money it's just a tool that we use to do what we really want to do. It's not about money. It's about life. And I just was so powerful to me.
podcaster
221 - 284 Jonathan Mendonsa And I think one of the things that always strikes me is once you claw your time back from the things that just have you on this hamster wheel once you claw your time back you can then be more generous with that time, and you can invest in relationships, you can invest in people, you can explore. You can really develop your passions and find out what is it that you really want to do with this time because, now you know when you're on the hamster wheel 80 percent of it is dedicated in one shape or form to just getting through the day. But when that's not there, you know what do you fill it with. And hopefully you know if you've built this money philosophy if you've built this framework for FI you're going to really be able to fill that stuff up with the importance of health surrounding yourself with the best people living in a place that has outdoor pursuits. Finding out what your What's going on in your library, raising your kids to be good hardworking people, exploring the world, give back by volunteering. And I just think that if you can develop, if you can get to a place where you're doing that, how much happier is your life going to be.
health, library, relationships, volunteering
284 - 394 Brad Barrett Yeah without a doubt. And you know that's kind of what what Carl touched on in the very beginning of the episode which was when you have money in common especially when you're pursuing FI and you have money in common you have so many other things in common. I mean it's it's these like minded people that you just don't generally meet in the course of life and you know we were talking about board games and you know conversations around the campfire and things like that. I mean there's so much truth to that. And you know I think a lot of people in this community are really seeing that and you know I've noticed just over like a camp mustache event that we went to and now on some of the the Mr. Money Mustache Facebook groups that people are really talking about actually making these communities in real life. I know the organizer of the camp mustache down in Florida is actually legitimately talking about this. And just seeing if it's plausible. And you know I mean to me that is like a long term goal in life is to live almost in a moustachian community where you know you have all these people around you and it's not just you know for me it's not just limited right now to fincon. The conference that I go to every year and then maybe one or two of these other events. But it could be like a year round thing where you're actually surrounded by these people who are who are so similar to you. And I mean you know in all honesty that's not something I'm going to jump into next year. You know I have kids. We are you know part of our community here in Richmond and you know we're not going to uproot our lives for this but who knows. You know I mean that could be something where you go and visit for a couple of weeks a year or you know five or 10 years from now you retire. There or something you know it's certainly something that a lot more people are realizing the power of community. So it really makes quite pleased to really see that happening.
fincon
394 - 407 Jonathan Mendonsa I'd love to get Pete on the show and talk to him about that at some point and see how he feels about where that stuff is going. It really is taking off and all the people that go to the camps I mean they certainly I mean it's just fun to picture what that would actually look like.
407 - 481 Brad Barrett Yeah without a doubt. And I know just in conversations with Pete I mean it's something that he's that he's actually considering. So yeah maybe. Where if we're fortunate we can get him on the podcast someday and chat about that specifically. So yeah that would be cool. You know another thing that jumped out at me from what Carl had to say was you know he had this epiphany which was that you don't have to work until you're 60 to 65 and that there really is this other way. And you know he saw that after just having a bad day one day at work and Googling something like How do I retire early. And you know he came came across Mr. Money Mustache and you know almost the rest was history in that sense and you know while we talk about this as a given because we are involved in this community it's very difficult for people to have that aha moment because this information doesn't cross their plate you know which is so sad. I mean it it really comes down to math and psychology but you have to be presented with that and that's that's what we're trying to start you know start. Obviously this has been started for years but you know we're trying to bring this to a larger audience here with this podcast and you know hopefully we're you know changing minds even if it's you know one person at a time. That would be a life well lived as far as I'm concerned you know.
podcaster
481 - 492 Jonathan Mendonsa Yeah absolutely. And one other thing about that and I was thinking about it you know when you posted that picture of your odometer on Twitter the other day that you just past 100000 miles. That's awesome.
492 - 493 Brad Barrett Frugal win of the week.
FWOTW
493 - 574 Jonathan Mendonsa Yeah but we had someone on Twitter. And I'm sorry I forgot your tagline but I just want to give you a shout out she said only in the FI community do people get excited about cars that have over 100000 miles on it. And no know she was appreciating it liking it and I thought that was awesome because how powerful is it when instead of living next to the Joneses you live next to someone that's committed to financial independence. It changes your whole compass and it really empowers you and makes it easier for you to get to financial independence because if your neighbor all your neighbors are telling you how they're all getting brand new cars. And you have the ugly beater in the driveway. You know you are going to feel the pressure to step up your game. But if all your neighbors are working toward financial independence your compass is change and instead of that you know now you get to brag about your car that has over 100000 miles not because it has over 100000 miles but because it's representative of the choices that you've made in this life to get your family to FI faster. And that is what when I see that when you posted that that's what I'm seeing. I'm seeing someone that you know can spend time taking his kids to school every day. He can check in at work when he wants to and he can check out when he needs to take a break. It's totally optional for you. And so it's a different metric. It's not 100000 miles per 100000 miles but 100000 miles represents a life choice that is allowing you to spend time with your family and with your kids. And just all these other cool things.
families
574 - 642 Brad Barrett Yeah that's really neat. I like that perspective Jonathan. You know honestly it's something that I hadn't thought about that deeply. But yeah you're absolutely right. I mean it it represents you know to me it's six years of no car payments and hopefully another another 10 to go and you're not wasting money on those dopey keeping up with the Joneses type things and you know that kind of ties into what Karl said also rain which was really such a stark example you know when they moved into that McMansion monstrosity and you know literally some little girl has walked over to his daughter and asked how many of those American Girl dolls he had you know she had excuse me. And I mean that was just crazy that these kids are already hit with this materialism and you know they basically the little girl rolled their eyes at Carl's daughter and you know when she said she didn't have any I mean like could you imagine living in a community where that's the norm. I mean that's just that's just absolutely abhorrent to me. And you know luckily Carl and Mindi decided to pick up and move. I mean what a crazy thing right. They actually put up a For Sale sign two weeks after they moved into the house. I mean that that takes some guts you know.
642 - 919 Jonathan Mendonsa Yeah. No absolutely. I can't believe that Carol has over 300 articles in his draft folder on his word press. I mean I have like I just can't even imagine the brain that can just come up with all these ideas sets him aside and then just gets to choose on trickling them out. I have like a 100 percent execution rate. So I think of one idea that I have to focus on that until it's done. And then I move on to the next one. But Karl is just amazing how many ideas he has and so much knowledge to share. So I know he just came up with an e-mail list he's just started developing it. I was the 11th person to subscribe. He can't have that spot. But if you want to get more of his really insightful ideas and articles you should go to fifteen hundred days and check out his subscribe list and I think ya'll will appreciate the content that he puts out on a weekly basis so go check that out. All right guys so as you know as Brad may have started to figure out what works on these Friday round ups we started to kind of put them into segments we view two shows a week is what we're always going to try to do. I can't guarantee that. So if one week you don't get a second episode Don't hate on us too much. Just really look forward to the next Monday one right. But what we're going to try to do is on Monday we'll unpack just a ton of actionable content and we'll either bring on a guest for that to help us to help us present those ideas or if it's something that we really feel like we want to do ourselves. We'll just we'll just go and do it ourselves. And then either way on Friday Fridays is going to be really our crowdsourced roundup where we bring in the best of your ideas your comments from the past week. And then we just unpack those in a way that makes sense and tells the story as well. And our idea was really that this has kind of become this hub for all ideas. You know fire and you know it's from bloggers and it's from contributors but it's also from you our audience so if you have a really good idea or story and you want to participate in that get your thoughts out there. This is your chance to do that and so we set up the e-mail address feedback at Choose F-I dot com feedback. at Choose F-I dot com so you can do that. And so you know please take advantage of that that's there for you this Friday episode really is for you. We learn as much from your ideas as we do from our own. And so we really tried to do our best to grab those and incorporate them into the show as you're about to find out. OK so in this first segment that we want to do we think it makes sense to do one called corrections. Now this is the part of the show where I insert the legalese that Brad and I are not lawyers and I would say we are not accounts but Brad is an accountant but in this case we're just entertainers we're not financial advisors you know we're not financial advisers so we're just relating the information that we know the way that we interpret it and we use it you know if and from a legal perspective you should always consult your lawyer or legal advice or financial adviser before implementing any changes. But these are our opinions. At any given time and we hope that you enjoy them and learn from them. Having said that we can make mistakes and we will try to be transparent honest when we find out that we have made a mistake and will relay that to you as quickly as possible. So sometimes it's omission and sometimes it's just a straight correction. And in this case the first one I'm going to talk about one thing and this is an omission from our millionaire educator. It was pointed out to us by two people one of them was R CAD so want to give you a shout out thank you for this edition of affirmation. He said something that is very important that people are investing into the 457 plan. Be aware of is that this is not protected by creditors. If the company goes bankrupt you could lose this money therefore this is not risk free. Now this has not stopped me and many others from using this vehicle. But whenever discussing the 457 you need to discuss this risk also. And then we have one more and this is by Sun Woo Lee and Sun Woo has a website at FI by 40 FIBY 40 dot com. And he's been going through a lot of articles and pointed out things where I may have been inaccurate or could have been more exact. And in this case he says I think it's important to point out that there exist non-governmental 457 BS which can be provided by non governmental tax exempt organizations like hospitals and charities. This has a significant downside as compared to the governmental 457 B's assets are not held in trust for the employees their employer assets until they're paid out to the employee. So if the employer goes under creditors can take money from your 457. So I think if you put those two together what I came away with is that you have 457 for you know states schools you know teachers at a public school system firefighters that sort of thing and that's kind of what we were getting at with this with this latest one with millionaire educator. But there are also four for the sevens for hospitals and charity groups. I think that goes back to the one where you said those are not you know guaranteed. So you know just keep that in mind.
457, accountant, blogger, firefighter, tax, teacher
919 - 960 Brad Barrett And one other actually on the millionaire educator I guess 457 are very technical and you know obviously we are just trying to present this as best we can. So it's huge that you guys are jumping in here with the corrections. Louis said just the heads up on the 457 accounts. You need to have a bona fide separation from your employer to withdraw tax free. I think the millionaire educator mentioned that because he changed jobs just thought the listeners in the public sector like me could use the clarity. So thank you very much. That's that's an important and important note that you can't just dump money in a 457 and pull it out whenever you want. There has to be that separation of service.
457, tax
960 - 1016 Jonathan Mendonsa We had one other correction and this one was from Episode 5 and Sun Woo has become our official guy that's going through and making sure we're staying on point with this stuff. And he actually pointed out I think that I had said that with the Roth contributions need to I used the word season for five years before you can pull them out without any sort of penalty. And Sun Woo pointed out that that is not the case that you can actually pull out your contributions at any point in time. And he gave me the exact specific details but I just wanted to relay that to you as well and actually to me that makes the Roth even more powerful as an investment vehicle especially when you're in your teens and early 20s and you're essentially in a very low low tax rate because you can put that money in there any time essentially as an emergency fund and you can pull it out you know any time without any sort of penalty.
emergencyfunds, roth, tax
1016 - 1029 Brad Barrett Yeah that makes sense and then yeah just a big thanks to Sun Woo. We met him actually at the camp mustache event and just a really brilliant guy and just just a good guy. So thanks for listening so intently. We appreciate it. All
1029 - 1107 Jonathan Mendonsa right so here's another success story this is from Jason. He says Jonathan and Brad loved the show as you guys have mentioned. Even if I can't implement all the ideas that are presented I grab some nuggets and apply them. I've done that my wife and I are currently on our second Chase Sapphire. We're now sitting on approximately 110000 ultimate rewards points. Brad you opened my eyes to a new way our money can be working for us. And millionaire educator has US tax planning for 2017 with two children and strategic savings. That 10 percent bracket is certainly within our grasp. And then he actually had a question on that which maybe we can take a look at. He says I want to move our Roths from the current location where we pay high expense ratios plus an adviser fee and he wants to send it over to Vanguard and go index all the way. Most likely he wants to do 70 30 VTSAX and then 30 percent VBTLX and he just wants us to know you know they're both in their mid 30s so it seems like a moderate blend. But he says How can I in good conscience invest 70 percent of our Roth assets in VTSAX when that bubble is looking quite plump. Should I just do it anyways and just remember over the long run it'll only be a blip on the radar. Where do we move to Vanguard and play it more conservative because of the current climate. Just wanted a second opinion. Keep up the great work Jonathan. The site looks awesome. Hey man. I read that last part because I love the plug. Thank you. Brad what are your thoughts.
indexfunds, roth, savings
1107 - 1263 Brad Barrett Well my first thoughts are great work Jason. I mean how how cool that he is listening to all this and really taking action. I mean that is fantastic. I mean not just Jonathan I talked about this off line and it just it just legitimately makes us happy. So yeah it's really it's really awesome. You know I guess his question is about moving to Vanguard and about this this bubble. I think one of the most difficult parts of investing is its timing. And we don't have the ability to market time. If we did we'd be billionaires and you know you have to I mean you have to time it perfectly and if you sit on the sidelines for too long. All of a sudden that bubble. You know a Dow you know 20000 or whatever it is all of a sudden the Dow 40000 and you know is it a bubble then. I mean there's I'm kind of speaking generally and hypothetically here but like you can't time the market. I can't time the market. Warren Buffett can't time the market. Nobody can time the market. It's it's just too difficult. So you know while there are ways you know again I always come back to the psychology like if you really felt like it you know there's always there's always the math versus the psychology if it's going to tear you out to have all your money in the stock market right now and it's going to keep you up at night. Then maybe that's not right for you. The math would suggest dump it all in Vanguard. Leave it there. Wake up 40 years from now and be a very happy person right. That's what the math would suggest. And there are going to be ups and downs there are going to be corrections all the time. You know if you can't stomach that it's going to make for a very difficult ride. I honestly don't look at my investments on any kind of regular basis because I know it will only let my stupid human brain into the decision making and will screw it up. So I try to avoid looking thinking doing anything other than just keep on pumping money into my investments every single week that that is my goal if I can do that. I know 40 years from now I'm going to wake up with a pot of probably tens of millions of dollars. So you know Jonathan I'd love to throw it over to you. I'm sure you have your own thoughts different thoughts or whatever but you know like I think Market timing is a fool's errand. And we just don't know. And you know listen the stock market could go down 20 percent in the next month. And you know I still don't think I'll look like an idiot based on this advice because you cannot time the market. You just can't.
stocks
1263 - 1331 Jonathan Mendonsa That's awesome. That's awesome. Jason I'm probably more like you I'd probably get a little fearful that I'm going to miss the window and I don't think we're the only one we're interviewing guests I'm not going to tell you who that made a similar confession. Even though they know they still struggle with that so it's a very real fear that I think you have I'll be honest though Frankly the more I listen to Brad the more I want to be like him so I probably will at some point you know end up in the same position where you have this windfall all of us at some point in our life hopefully we'll have some sort of windfall you know whether it be a thousand dollars or five thousand or hundred thousand whatever it is. It's common for a lot of us at some point for some reason and then you opt for what you want to do with it. And I think the general advice that Brad just gave is awesome. If you're really worried about it you could just dollar cost averaging over the course of a year maybe drop it in quarterly. You know 25 percent of the time to capture it over different rates. If you feel like that averages your risk. And I don't think there's anything wrong with that. But the overlying principle is you should not be subject to the whims of the stock market. That's what you're avoiding with you're doing when you're doing index fund you're not worrying about you know that over time it's going up and you're just getting yourself and your psychology out of the way just what you need to do what it does.
indexfunds, stocks
1331 - 1358 Brad Barrett Yeah just to jump in real quick. You know I am not infallible by any means though. You know I appreciate the compliment. It's it's the exact opposite. I am a moron at this. Just like everybody out. And if I knew I know that I'm terrible at it and if I let my brain get involved I will screw it up. I know that I will because that's just how it works. So I try to just put it on autopilot as much as possible and just not think about it that that just makes my life much easier.
1358 - 1438 Jonathan Mendonsa Yeah absolutely. All right Jason. Great question. Great question. OK we have an iTunes review for you now. This one took me a while to find because it's actually our first review from Australia which is really really cool. Anyways this is by FB users 33. So giving you a shout out from Australia and he says it's so easy for podcasters in the fire space to provide 100 percent positive content. Which for me includes the FI success stories. The retire early strategies and calculations even anecdotal failures which have almost always already bounced back to some level of financial success. Like a typical Facebook feed the positivity motivation field goodness content bubbles to the surface that is great writing. Choose FI conscientiously took a slightly different tack. Brad and Jonathan have designed a platform to take the most practical content in the fire space and try it out in an open book manner. They are incredibly honest in their approach and also great sports when they discuss differences in their own behaviors opinions personalities and situations. As someone who has typically love motivational content without taking much meaningful action in the past I found choose of-I has made it very easy for me to jump into the first gear and try a few things in my own universe. Thank you for providing this amazing free content. Well thank you for sharing. That is fantastic I appreciate that you find this helpful and we obviously love producing the stuff for you guys. Thanks a lot.
podcaster, testimonial
1438 - 1502 Brad Barrett And we have a couple of other nice short iTunes reviews here and just wanted to read quickly one from Doc mom 21. So glad I came across this podcast. Love it. Thank you for all the advice. I just recommended this podcast on a large Facebook group that I'm in because I want lots of other people to benefit from all your great info. Thanks again well thank you very much Doc mom for sharing it. That's that's absolutely wonderful and and Gypsy Schick said fantastic podcast. These guys are relatable informed and inspirational Of all the financial podcasts I listen to. This is the one I'm eager eagerly waiting for each week. Great content for anyone interested in financial independence or retiring early well thank you all very very much. We really appreciate it. And yeah. If anyone out there listening the biggest thing you can do to help us is to just head over to iTunes and just search. Choose F-I one word and just leave us a short review and hopefully a five star rating. It takes a minute but we just cannot tell you how much we appreciate it. So thank you.
testimonial
1502 - 1579 Jonathan Mendonsa All right we had another question this is from Dave. Dave says hey guys love the blog and the podcast. I'm just starting my fi journey and I'm a bit confused about something. Knowing where you are on the journey seems best measured by tracking your net worth. In fact Rockstar finance which you listed above and I think that's one of our articles our early retirement articles where we have a list of a lot of blogs and podcasts that we found helpful over time. And Rockstar finance was listed there but Rockstar finance has a blogger networth tracker and he said here's where I'm confused. NET WORTH is traditionally defined as assets minus liabilities as far as I know. Yet many FI bloggers seem to measure their net worth as only their assets and ignore their liabilities some in the list. Measure it the traditional way. I imagine most of the liability interest rates are very low but I don't know why how or why the balances of liabilities are ignored. For example no nonsense landlord which is number two on the list says his net worth is the sum of the investment accounts plus a realistic selling price. He ignores the almost five hundred thousand mortgage balance and is net worth calculation. He is ranked in the tracker just by his total assets. So here's my question. Do some fires measure networth differently. Is there an understood agreement in the world that assets are more important than liabilities.
blogger, networth, traditional
1579 - 1731 Brad Barrett All right Dave. This is a good question multilayered question so I'm going to give my opinion and Jonathan I'll jump in with his. Yes I've noticed that people in the community measure networth differently but it's usually kind of at the margins. It's not what you're talking about specifically. And I will touch on that. But some people in the community include the equity in their home and some just consider their investable assets so you know while that's not at the margin per se since you know the equity in your home can be a significant amount. You know some people just take that as a legitimate difference of opinion. So you know that that's plausible. You know I in my networth Sometimes I include things like I always look at it as like a net liquidating value like what's what is what is my actual net worth after all is said and done. And so you know I'll include the value of my cars and you know if I had something particularly valuable I might included it in a networth as well. That's the kind of stuff at the margin. But your question is a bigger one which is why do people not include their liabilities. And you know I know nothing about no nonsense landlord. So this is not an implication either way shape or form of that person but for any net worth calculation you need to include your liabilities. That's that's just the accountant in me. It's just very simply you add up all your assets you take out your liabilities and that's your net worth. So that is an absolute no brainer in my opinion. Like I said the you know the at the margin stuff we can you know people of good faith can can decide whether they want to include their the equity in their home and things like that. But but it's absolutely ridiculous to include the selling price of your home but not include the mortgage. I mean that's absurd. So you know you just can't do that. You know if you really wanted to get deeper on this you could you know talk about the amount in your IRA which is tax deferred. Is it really worth 100 percent on the dollar. Because it's going to be taxed at some point and then we get down deep deep deep into the you know the tax optimization strategies of you know the mad Fientists and things like that. And you know that's that's a whole separate issue. But but you know if you're talking like you're net liquidating value what is that money worth to me. It might not be worth 100 percent. So you know again I could keep talking about this for for quite some time but the short answer is there's a difference of opinion. But I think without any question you need to include your liabilities in any kind of networth calculation.
accountant, ira, networth, tax
1731 - 1876 Jonathan Mendonsa Yeah. I have two thoughts on that. And one of them is a direct thought and one of them is kind of a pivot a little bit of a different direction. So bear with me the first thought is also that the network tracker on Rockstar finance I believe is brand new and is kind of an add on to the directory that they just built. So there is no conformity on that list right now. You know I'm sure they're still building. I'm sure it's going to be awesome. J money. You know he really is a rock star so he will get it all figured out and get everything very consistent. The second half of that question is a little bit of a pivot and I think there's something about doing the public network tracker that always it just rubs me the wrong way. You know in terms of putting it out there and I think it's because one of the things I find so attractive about fire in the fire community is that he who has the biggest pot is not the winner in this game. It's not this race to the finish where you have a number one and the number 20. And you know the number one is a winner because they have the most money and they're a millionaire a billionaire in the fire community our ultimate goal is not to be the one with the most money it is financial independence it's freedom and flexibility. And that's a completely different calculation. And it doesn't really have to do with what that top number is but rather it is a variable in this equation that says My life costs this and my passive income whether it be from investments or real estate or anything else produces this. And once they even out. You're now financially independent. And so you know I don't think that I've listed mine on there maybe I would if I were a billionaire. I don't know. But but I don't think I put it on there. I think it's something about that is that while I would include a net worth as a tool when I'm sharing with people how to do that calculation you know I would have a problem with that. It's not a hammer to hit people with rather it's a way to it's a way to motivate motivate people and show people how they can achieve their own level of financial independence. And again that's just one of the things that I always found very attractive about the fire community when we were at that mustache mustache camp that we always talk about. We were there with people that were worth 50000 we were there with people that were 10 million. But you would never know that in that group because everybody was sharing their experiences and they all use the same tools to get there. They had cars with hundred thousand miles on it you know they live far beneath their means they used their margin to create these passive income sources. And the focus was not to have the biggest sum of number sum in that net worth.
networth, passiveincome
1876 - 1908 Brad Barrett Yeah you're absolutely right and it's that that number. It's not the status that it is in real life. So yeah I totally agree with you there. I personally would have a hard time sharing my I think I know especially my wife has no interest in us ever sharing that. It's not that I'm especially worried about about sharing it for any reason but we're just kind of private people. So you know you're probably never going to see a networth statement from me but. But yeah I think it's certainly an interesting conversation at the very least.
networth
1908 - 1988 Jonathan Mendonsa And from a website perspective you know ChooseFI of the things we're doing what we're putting out there you guys is we're talking about this content that we really believe has the power to change the way you look at the world or at least reinforce the beliefs that you've already had. And what we're doing we also have an e-mail list. And for those we're trying to help people exactly where they're at. Instead of being a one size fits all podcast we're asking you what do you need help with and we're giving you specific help so we've kind of broken off that email list into three different segments. People that are trying to get out of debt people that are interested in starting a business online and the people that already have one that maybe want help with branding and we're trying to give you specific tools that we've used along the way. And as it fits that model you know we've decided that we're going to share with you all the income reports from Choose FI especially for the people that are interested in starting a business online or are interested in branding. We're actually going to share those income reports but in that perspective. It's not a it's still not bragging. It's more just to help you see the tools that we use to create these passive businesses online. So if we're interested in that you can go subscribe to our email list and you can do that. On choose FI dot com slash subscribe or if you're listening to this on your phone and don't have access to that. You can just text choose FI to 4 4 2 2 2 text choose FI to 4 4 2 2 2 and that will get you on our e-mail list.
debt, passiveincome, podcaster
1988 - 2349 Brad Barrett All right. On our Friday round ups we'd like to just take one travel rewards question that we received from the audience and just kind of talk through it real quick. So just again a reminder our podcast on traveler rewards which we think is pretty much the best intro on on this concept you know anywhere on the Internet is at choose F-I dotcom slash 0 0 9. So that's a great way to get started. And Jamie wrote in with a question just saying I have over a hundred thousand chase ultimate rewards points and I really need to know what are your favorite transfer partners I understand from listening to you that you know there are three different ways to redeem that Chase ultimate rewards points and that transferring them to travel partners are the most lucrative. But I need to know a how do I do this. And B what. What are the most valuable of these of these partners. All right Jamie that's that's a really good question. Yeah I mean actually physically transferring them is pretty easy. So that's you know we'll just touch on that real quick. You can just log into your chase chase online account you click your points balance that take you to the ultimate rewards area and you'll see there's a there's a drop down for travel. And one of the options I don't have it in front of me but it's transferred to travel partners is probably the wording they use. And when you click on that you'll see the 11 different transfer partners of Chase ultimate rewards and what they'll do is very simply they'll ask you for your account number at those at that. Let's say airline or hotel say Hyatt Hotels they'll ask for your account number and just your last name and that's it. And that's all it takes to actually link up that account. So what I would recommend just just to save some time you know in a point down the line where you actually want to redeem it. I would just create those accounts now. So this kind of ties into the second half of your question which is you know what are the best of those transfer partners. And you know for me there are generally four that I consider the highest value and then a few others that that you can definitely get some significant value out of. So the four that I liked the most are Southwest Airlines Hyatt Hotels United Airlines and British Airways. And we're talking about British Airways a little bit more in-depth. But but so I would definitely create a free account at each of those four without question. And you know just just link up these accounts with with your chase ultimate Ward's account. So that means you know at any point down the road if you want to make that transfer you don't have to scramble and quickly you know sign up and link it and do all the stuff you just know it works. So that's just kind of my little you know strategy hack is just just do that beforehand. And then the other the other partners that I get some value out of sometimes are are kind of like the sweet spot redemptions we call them. So there's Singapore Airlines and Korean Air. So generally speaking you hear those you're like you know where on earth what I would I use these I'm not planning on traveling to Asia anytime soon. But but that is gets at a larger strategic point of the airlines and the award charts and really the the airline alliances is when you have let's say Singapore Airlines miles you can fly on any of the Star Alliance partners so United Airlines is is a perfect example of that. So while Chase ultimate rewards already transfer to United there are instances where the Singapore Airlines awards chart has these sweet spots like for instance to Hawaii and I'm pretty sure we mentioned this on our on air episode 9 podcast but if you had for instance you wanted to fly from the continental US to Hawaii it would cost you 45000 United miles to fly on a united airplane. But it would actually only cost you 35000 Singapore miles to fly that exact same airplane. So it would save you ten thousand miles roundtrip just by knowing that little hack. So you know that is beyond the scope of a short five minute answer here. But but you know talking about all the specific details but but that's a really cool way of at least just getting a comprehension that that these sweet spots do exist. So yeah just you know quickly going back. You know Southwest Airlines is the easiest of all the rewards programs to use. You know they don't have any black out dates or word limitations so you know I love them. Hyatt Hotels. I find a lot of their category 1 and two hotels which actually only costs 5000 8000 points respectively to really carry a lot of value. So we've we've done quite quite well with Category 1 and 2 Hiatt's And you know then you get into united united passes along. None of those junk fees that are called fuel surcharges so united miles are actually really easy for international trips to Europe or Asia or you know really wherever you want to go. And finally British Airways and you know again this is slightly outside the scope of this podcast but British Airways you can actually use for those sweet spot redemptions here in the U.S. on both American Airlines and Alaska Airlines So that's actually some using British Airways points of all things is actually one of the best ways to fly in the U.S. If you have flights on American Airlines and Alaska Airlines So you know you can find out more on our podcast and we'll. Definitely in our travel rewards section. We're going to continue to build that out and provide more info.
travel, travelrewards
2349 - 2466 Jonathan Mendonsa All right so one of the things we want to do is get a chance to feature articles that have really made an impact in our lives and in your lives. And we also want to try to give exposure to new articles that have come up within the last year. So what we'd like to do if you have an article that really excited you this year or just was jampacked with content. Brad and I are going to do a feature where we do the top 10 articles of the last year and we're just going to kind of pick them out ourselves and just kind of do a comparison of what we liked about it. And so if you read something that really made a difference in your life that was written within the last year and you'd like to maybe see it featured on the show you can send that idea. The link to that idea or that article to feedback at Choose FI. We're going to be collecting these over the next three months. And so we'd love to crowdsource this and really get you know we have probably close to 5000 subscribers now that are that are aware of the show are listening to the show and are on a semi-regular basis. So we'd love to get your input. Send us your ideas feedback at Choose FI and we also want to do a segment called frugal wins and frugal fails. So I have a frugal win of the week Brad. This week we started preparing for our first yard sale. Wow. Yeah wow. We are unpacking four years of crap that's just been accumulating and we're actually doing a yard sale now. I have heard about doing a yard sale for for you know years decades is a great way to de-clutter your life and to earn extra money. And actually my community organized it. So what they're going to do is they told everybody you know you can pay this one time small fee and then we're going to have this community yard sale you to set it up in your driveway in whatever you don't sell. We're going to then have a goodwill truck come by and they're going to just pick it up off your driveway for you. And so it's kind of this brilliant idea your de-cluttering your life will probably have somewhere between 100 and 200 dollars worth of stuff that we'll be able to unpack and my house is just going to be empty again. Feels so efficient.
FWOTW
2466 - 2488 Brad Barrett Yeah that's awesome. When we clean rooms in our house we end up calling it an oasis. That's what it feels like. It's just so mentally freeing right to like just have that look in a room and just see nothing. Just see no piles of garbage where they you know just wind up accumulating so yeah I totally hear you on that.
2488 - 2519 Jonathan Mendonsa I'm going to take a picture of that and you know I'm going to take a picture of all the just the crap that we found in the house. We're going to be able to sell. I'll take a picture of it and put it on our Twitter feed this this weekend but very very exciting to be able to first of all you know you know how much junk you have. I mean if it's been in your attic for four years or even for a year probably there's no chance you're ever going to use it again. You got to use that as the you know the the line at which OK we could probably get rid of that. I had stuff that had been there for four years and it never gone near it. So there was a lot of stuff that we could unpack.
2519 - 2565 Brad Barrett That's cool right. I mean once it's up there for years it's it's literally worth zero to you because you're never going to look at it. So yeah that makes sense. That's really cool. Yeah I mean we had a we have an upcoming frugal win so I'll just kind of mention it now which is we just cut the last check for preschool for my daughter Molly. So she's going to kindergarten in the fall and you know she's been this really wonderful preschool right around the corner from us for a couple of years now. You know just a morning morning preschool. But yeah we literally just just cut the last check for that so you know that's a not insignificant amount of money every month that where we're paying. So that a that's a nice addition to Vanguard every month now.
2565 - 2567 Jonathan Mendonsa Yeah like getting a raise.
2567 - 2576 Brad Barrett Yeah yeah it's great. I mean a couple hundred bucks a month. Just straight up after tax raise so yes. That's a pretty cool little frugal win of the week.
FWOTW, tax
2576 - 2716 Jonathan Mendonsa Now it can start going to her college fund. All right. So one thing that we really want to communicate to you and I think we've done that but your feedback is the lifeblood of choose F-I your thoughts and ideas are what help us go and find these really great conversations and then be able to present them to you. And so again we just want to give a shout out to Isaac Isaac on almost a weekly basis. Sends us his ideas and thoughts and he's plugged a couple of other plug blogs for us. We just want to you know give a shout out to first he mentioned slowly sipping coffee which you can find at slowly sipping coffee dotcom. And he said you know I love these guys. I feel like they're just outside of the fire mainstream blogosphere he has never heard them on a podcast before. Just a real normal couple. Two kids grinding to the fire finish line. He said their lightbulb email post was the most influential thing in the fire journey and he sent us the link to that which we'll link to in the show notes. And so I'm actually I haven't had a chance to check that out but I'm really excited to do that. Fervent finance. This is another guy that's just outside the big timer circles. Really enjoyed his writing. He's made some big lifestyle choices to reduce his expenses. He's also for the the fire community under-30 which is a pretty cool perspective. So Isaac you know since this his ideas he sends us links to great content. It really does help us out as we're preparing shows to give you all this awesome content so we get it you know in some cases we have a backlog of stuff ourselves. But it really is helpful when you all showed us your ideas and topics. This show is as good as our community is. And so we really do get better together. And so with that in mind we're going to be kind of closing this upcoming week this weekend prepare for Monday where we have Justin from root of good coming on the show and we're going to be unpacking some very cool ideas with him on what financial independence looks like with kids. And after you've achieved early retirement. How does a dynamic change. How does it affect your kids. So I think you are really going to appreciate that. We also delve into what preparing for college looks like how to do college in a smart way. I'm going to say that this is not the final say on college. This is kind of just opening up the door for conversation. We're going to actually even be going deeper on this topic in the coming months and years. But this is to get the conversation going. And I think you are really going to appreciate that as well. Brad any final thoughts.
college, podcaster
2716 - 2761 Brad Barrett Yeah I would say just keep the feedback coming especially on on the Monday episodes if you have something if you listen to Justin's episode on Monday and you have some great suggestions for how you save money on college. Send it to us. Just shoot us an e-mail feedback at Choose FI dot com. Or if you have a question for Justin or you know some clarification or we might have said something wrong. You know we need your input. That is that is with keeping this going. So you know again just thanks for listening and you know we just really love doing this honestly. Hopefully you can hear it in our voices. This is this is the thing that gets us out of bed in the morning. Jonathan and I talk every single day and we just love this so you know. Thanks for being there. Thanks for downloading and thanks for telling people about it.
college

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