039R - Cruise Control

Please note

These transcripts are a work in progress and the initial transcription occurred via automation, so transcription errors are not just possible but likely. Please report transcription errors by clicking the icon at the end of the stanza containing the error.

Transcript

Time Speaker Text Tags
0 - 7 Jonathan Mendonsa OK guys will come back this is your Friday round up and to help me do the show today. I have my co-host Brad here with me in the studio. How are you doing buddy.
7 - 10 Brad Barrett I'm doing great Jonathan. We are back to school this week.
10 - 13 Jonathan Mendonsa I was going to say and I think your youngest daughter is starting school right.
13 - 56 Brad Barrett Yeah. Little Molly started kindergarten today. We're actually recording on Thursday. So yeah today was her third day. It's pretty crazy. I mean obviously it's wonderful that she is growing up and she's loving school. So it's it's really cool to see. But now Laura and I are home alone which is crazy. I mean Laura has basically been a stay at home mom for the last nine plus years. And I kind of half jokingly said to her friend we're like empty nesters now. It's a crazy new world here and obviously that was tongue in cheek because I know clearly no the definition is different but every single day now we have from eight o'clock till three to just kind of hang out and live a FI life in a sense so it's a whole new world for us.
56 - 65 Jonathan Mendonsa Yeah I think this is going to pose an interesting question for you guys. I mean what are you going to do with all this free time. Is that the library you're going to go find some coffee shops. If you guys got a plan for this for this window.
library
65 - 133 Brad Barrett Yeah. Jonathan it's it's a really good question. We're in day three. So we're just trying to navigate it. I think literally Laura has had more free time in the last 48 hours than she's had in the prior nine years. And I mean that's not hyperbole. That's legitimate. And it's a different world for her not to say it again but it really really is. And yeah I mean we have to figure out what this looks like. We're fortunate we're incredibly fortunate we have all this time. We have resources obviously and we're we're young and we're healthy like we can do anything. That's what's so exciting about this. I mean if we wanted to put the kids on the bus at 7:45 and then drive to Shenandoah National Park and go for a hike we could do that and literally do that in one day. We can really do essentially anything and now we're just trying to figure out what that looks like. So I mean today for instance where going out to lunch. I mean we haven't been out to lunch together as a couple in a decade. As crazy as that sounds and we're going to kind of just explore and see what Richman has to offer that we just haven't done just because we're limited by kids. I don't mean to paint it like that but just that has been our life for a long time and now now we have these options.
health
133 - 188 Jonathan Mendonsa Well speaking of growing up fi that's a pretty interesting transition because this week we talked to Fiery millennial and she just shared with us how she crushed this game in her teens and early 20s. And because of the decisions that she made up to this point she is at the place where she could retire by the age of 30 really if she wanted to and certainly by 35 and it painted a remarkable picture that maybe we'll get a chance to explore today. And this is one of those things we said that we wanted to contrast this with second generation FI because in my mind your kids are second generation FI they are going to grow up having seen mom and dad make these choices and be able to reclaim their time and spend it with them and mentor them through this process. I can't imagine that your kids are going to go pull a total 180 from the path you chose. I mean they aren't going to be on the exact same path but I'm sure that this path that you found will influence the life that they choose.
2ndgenfi
188 - 231 Brad Barrett Yeah. No I totally hear you. And it's funny. I think each of my daughters has exhibited some of our behaviors in two totally different ways which is kind of neat to see. I've mentioned on prior podcast about my younger daughter Molly being this ultra like minimalist and she loves cleaning with me she loves just going up into the attic and literally like getting stuff that's basically just junk and throwing it out like she actually derives pleasure from that like we did it two days ago and she's like Daddy let's go up in the attic and throw things out. I mean what kind of five year old kid actually says that it was just like it was so cool. And like my like pseudo minimalist heart just skipped a beat because it was fantastic.
231 - 233 Jonathan Mendonsa A pseudo minimalist that's perfect.
233 - 294 Brad Barrett Yeah. Really it's hilarious. And my older daughter Anna was even funnier. We actually had open house at her school last week where they basically go and just kind of meet the teacher and drop some things off et cetera and Anna's best friend is actually sitting right next to her and Anna was talking to her mom and they were talking about these glue sticks that they got. OK. So they had to get like 12 glue sticks. And this girl's mom is like can you believe you know we needed so many. And it's like oh my god I know and they're so expensive. We had to go to stores and then look on the computer to buy them. And it's like that was her response immediately like she went to. Man I can't believe they were just more than I valued which is kind of like my valueist thing. And Laura always looking for deals. And Anna just has that like she is just a frugal person by nature. I could come up with 100 different examples of times she's been aghast at how much something costs. And it's really funny. But she doesn't mind spending money on things that she does value. So similar to me.
valuist
294 - 296 Jonathan Mendonsa Ah The valueist.
valuist
296 - 316 Brad Barrett It all comes back to that right. Yes. Two tiny little stories. But it's interesting to see how your kids do pick the stuff up. We haven't been overt about this. We haven't pushed into them saying like oh you have to save money or oh you have to not spend money. It's just they see how we live and they pick things up that work for their own personalities and lives. And it's it's really cool.
316 - 363 Jonathan Mendonsa I don't want to I don't want to belabor this but it does strike me that this show is kind of a chance for us to document our journey. But since we have families it's more than that to some degree it's documenting the the the progression of our kids right. And I think it'd be cool if the show continues for five or 10 years to see what those experiences actually look like when we talk about second generation fire and in our Facebook group we're able to share the stories of not only Brad and Jonathan but also the stories of our communities and how we're trying to implement these ideas into our kids lives. But it's cool that we can take just a couple of minutes each morning and talk about the practical implementation of that and actually what you're seeing on the ground. So my son is now four months old and Brad he had some progress as well. He rolled over yesterday.
2ndgenfi, families
363 - 369 Brad Barrett Oh wow that's a big. Hey that's a big step it is not a frugal step but man is that good for him. Awesome.
369 - 377 Jonathan Mendonsa It was huge. It was huge. And he could do it. Now he just does it. If you set him on his stomach he's not going to stay on a stomach rolling onto his back. Big deal.
377 - 382 Brad Barrett That's school did you take a video and send it to your family throughout the world.
382 - 390 Jonathan Mendonsa I tried but he freezes on camera. You bring out your phone and he instantly knows and he just scowls that you like nah nah man I'm not going to do it.
390 - 393 Brad Barrett Smart kid. I like that.
393 - 498 Jonathan Mendonsa And while I could talk about my kid and your kid for the entire show. What I really wanted to focus on today was not so much second generation fi but this Millennial path to FI that we actually talked about on Monday. And in contrast with fiery millennial while Gwen didn't have her parents walking her through this process she had that light bulb moment on her own. She was young enough when she discovered this rabbit hole that time itself is now a lever that she's able to pull. And so we talk through a few the things that she did but just the fact that she had found multiple ways to hack college and she graduated college with actually 10 grand in the bank on top of that. She leveraged obvious networking tools like finding an internship to make sure that she had a great job waiting for when she got out of school. And just every step of the way she's made a choice that you want to share with maybe your younger siblings depending on where you are in life or maybe with your kids if you're a parent I mean because you can see how when you take all the stuff that we talked about and then you apply it to this younger generation just a few right choices early on are enough to completely break this game. I mean and frankly will be done at the latest by the time she's 35 and realistically could probably pull the trigger on FI by the time she's 30 and to me that's such a remarkable outcome for someone that did not grow up with a silver spoon that you almost just want to pause on it and just highlight those choices because anybody can achieve this stuff. It literally was not rocket science. It was just finding a few good ideas that other people had modeled and then just implementing those one at a time into your own life and then in her case the reason we're all able to benefit from it is that she was willing to share her story both on her website fiery millennials dotcom but also come on the podcast and share it and just right out the gate we appreciate her taking the time to do that.
2ndgenfi, college
498 - 613 Brad Barrett Yeah it was great to speak with Gwen. She's funny she's interesting she's got a great story. So that was all wonderful. And she's made a lot of fantastic choices and I think Gwen certainly mentioned this like well she had a fantastic high school record because of how well-rounded she was and all that stuff like she didn't have the 36 on the ACT or the 1600 on the S.A.T. but she was really really intelligent about finding the school where she could get a full scholarship. And there is a lot there and I know I can draw a parallel to my own life thinking back on frankly how stupid I was and how I wish that I was like Gwen and I wasted a lot of money on college and I don't mean wasted because you know I had a wonderful experience you know yada yada yada but realistically and this is certainly not like this is an awkward thing this is not like a pat myself on the back. But I did have that top one percent sat score and things like that. And I did get into Ivy League schools and places like that. So if I was a little bit smarter instead of focusing on that I should have focused on the 2000 colleges that I probably would have gotten a full merit scholarship from. Wouldn't that have been more intelligent. And I think back and say like wow I wasted many of her dollars. It was $100000. You know I don't even know precisely but on college when if I was just a little smarter like Gwen and focused on a place that I could have gone for free like that could have been transformative and I would of came out of college with the money that my parents saved for me and instead of throwing it away it would have been sitting there to buy a house or invest in VTSAX or whatever it may have been. Right. And I would have that could have been a real game changer. And I definitely I applaud Gwen for doing it the right way and looking at the rules like how cool is it that she said I think it was 28 on the ACT like she needed a 28. She got it and that got her this full right. And that's amazing.
Brad_Catchphrases, college, indexfunds, scholarship
613 - 630 Jonathan Mendonsa I loved your classy use of the yada yada yada in that sentence. I mean it's like this secret life hack that you can just gloss over your entire life with it yada yada yada. And then just move on with the rest of your day. Very efficient. I'm a huge Seinfeld fan and well-placed sir. Well placed.
630 - 630 Brad Barrett Thank you thank you.
630 - 778 Jonathan Mendonsa But on a serious note I do think there's a lot of value to you just added with that. I think so many of us try to get the absolute perfect score and we miss that point of diminishing returns and by focusing on what you actually need do that get that get what you need and then figure out what's the next thing and instead of putting all your emphasis on this on on trying to get this squeeze this extra a few percentage points out do what you need to do and then be awesome at something else as well that will also help you hit your goal hit your goal from multiple angles instead of trying to be in the top point 0 1 percent of any one thing and sacrificing everything else to achieve that goal. Yada yada yada. So today really where we wanted the land is we wanted to discuss this concept of this cruise control path to fi and we wanted to place a lot of emphasis on this idea of if you do just a few things right early on it sets the path for the next 20 30 40 years. I mean it's remarkable. We love talking about concepts principles theories but we have found that some of the more powerful segments in our show has been actually walking you through the math and as strange as that sounds because numbers really historically speaking don't work well on a podcast. But when they're big enough they can be very rewarding. And so this is a fun number to illustrate and a fun concept to illustrate. So let's imagine that the second generation Fi case study is able to graduate college with no debt. And maybe they even come out with a positive net worth. But they follow some of the principles and the guidelines that we've explored over the last several episodes and we'll continue to explore and they're able to start their financial freedom clock as soon as they graduate college and immediately they start maxing out their 401K if that person maxes out their 401K from the age of 22 to 32 and then they use this cruise control principle which says once you get enough in your account early on you can just stop. Now this is kind of more of a theoretical concept because it's hard for me to imagine somebody that goes from saving this kind of money to just completely walking away from the path altogether. But I think it'll still allow us to illustrate the point. This person maxes out those 401ks from 22 to 32 and then they just either exit the workforce or they stop saving a dime. They just live paycheck to paycheck for the rest of their working career for the age of 32 all the way up to 60. Brad I know you went ahead and ran the math on that. How much would that person have waiting for them in their 401k at the age of 60.
2ndgenfi, 401k, career, college, debt, savings
778 - 782 Brad Barrett At the age of 60 they would have 2.4 million dollars.
782 - 783 Jonathan Mendonsa Wow.
783 - 820 Brad Barrett That is just a remarkable number and like you said they're only investing and only living the FI life in this kind of silly but but interesting example. For 10 years it's 10 years where they're just maxing out that 401K. So basically that's 10 years of $18000 contributions. So $180000 total contributed turns into 2.4 million dollars. And that is the perfect example of compounding over time. Right. And just giving yourself as much time as possible to let the wonders of compounding work for you over decades.
401k
820 - 850 Jonathan Mendonsa Let's dial in on that. So that number $2.4 billion is incredible and that's what they would have waiting for them at the age of 60. But keep in mind this person was on this cruise control path to FI. So they only invested in saved from the age of 22 to 32. So this 10 year window this 10 year period of time and I guess I'm curious Brad when you take a look at that same math the person that just invested for that 10 year window from 22 to 32. And if we bake that 8 percent rate of return how much did they have in the account when they turned 32.
850 - 918 Brad Barrett Yes so at 32 they had it it looks like about $282000 which is certainly a nice number. But keep in mind that includes the 180000 of contributions. Right. So that 180 that they've contributed an $18000 yearly increments turned into 281 by the time they're 32 which is phenomenal. Not many 32 year olds have a $282000 401K but that's not that mind spinning number. What actually is the magic is that money just sitting there from 32 turning from 282000 all the way up to 2.4 million at the age of 60. And that's with zero dollars of future contributions. So you know that should for anybody out there in the audience that it should really get your mind spinning about just the power of time and the power of compounding. So Jonathan always talks about second generation fire. This is the perfect example of get your kids started as early as humanly possible. Those years you can't get them back.
2ndgenfi, 401k
918 - 1082 Jonathan Mendonsa Yeah and it's even more than that like once you understand the power of this. I think it changes your strategy overall. Now I know there are so many people out there that are thinking to themselves Wow I would really like to be a stay at home mom or dad at some point and the conflict that you feel when you say Well that is going to destroy our savings rate and we can never go back. None of us can go back but when we're mentoring our kids we're mentoring the next generation with this information. I think it does move the playing field and I think in America we put so much emphasis on the three or four career paths that we feel that you can get in order to get the six figure income so we know that you'll be set. But in many cases those career paths come with eight to 12 years of school where you're tied down and when you come out you have six figures of student loan debt that you have to pay off. And when you pay down that student loan debt you're stuck on that hamster well into your mid-thirties before you ever get that financial freedom clock going and you're actually able to start. But if we start talking about life in terms of the cruise control path to FI it changes everything. You don't need nearly as much. All you need to do is focus on the savings rate get that savings rate as high as possible as early as possible. Get that financial freedom clock started as quickly as possible. And if you don't start out life by graduating school at the age of 28 to 32 and you don't start out life with six figures of debt and you're able to reclaim your 20s so that's not the lost decade that it was for me and it was for so many other people. If you're actually able to use your 20s as this powerful lever that you can get this little mini nest egg build up and then for whatever reason you have to bail on the workforce or you have to you're not able to put that money aside for the rest of time if you're able to do it for a relatively short window time will take care of the rest for you. So time is a pillar of fire. You can't put enough emphasis on this and how many people or how many personal stories do I know where an individual was willing to go. Let's say they I mean let's just use the prototypical example let's say they went to med school or pharmacy school let's say after that they came out with $160000 the debt. By the time they ended up paying off their loans because they were very aggressive they're in their mid 30s and at that point they're just burned out. They're totally 100 percent burnt out. This avoids all that. This allows you to get all that free of all that flexibility all of that power. Move it to your side of the ledger. Earlier in life so you get to make decisions that are in your best interest in your 30s and 40s and I think if we can just use this as a general framework it will allow us to create a strategy that has a lot more options. You don't need that you no longer have to pick one or two or three careers that you think are going to get you to the outcome you want but rather you get to do almost anything you want because in the background all you need to have are just a few of these principles locked down.
2ndgenfi, career, debt, savings
1082 - 1290 Brad Barrett And yeah you know you talk about 20s your 20s. Right. Like I'm actually interested in and I'm doing some research on this now. But we had talked about this on episode 18 with Jeremy from go Curry cracker and it was about contributing to your children's Roth IRAs when they are extremely young. In his case I think his son was an infant or one years older or thereabouts when he had him doing quote unquote modeling for the book cover or the Web site. And when your children have that earned income you can contribute up to 100 percent of that to a Roth IRA assuming it's of course under the the limit which I think currently is. Fifty five hundred dollars a year. So I mean could you imagine being able to put fifty five hundred dollars a year in your kids. Roth IRAs when they're 1 year old or even 13. Right. Like let's say I was just running the numbers while Jonathan is talking and let's say your kids do. I don't know babysitting or mowing the lawn. And this is actually what I'm trying to get some clarification on. I sent this over to Keith from the wealthy account and I expect he'll he'll hopefully get us a voicemail in the next week or two. No pressure there Keith of course. But I know Kieth is probably listening to this. I need some exact clarification on specifically what type of income and how you have to document it. Those kind of things like I wouldn't want to say that my daughters mowed the lawn and I paid them. And then the IRS come in at some point in the later years and knock that down so especially before I give this as a pronouncement to the audience out there like we need to dot every I and cross every T but it is a certainty that you can contribute for children under 18 to Roth IRAs. So I was just saying like hypothetically. If my kids if I put. Fifty five hundred dollars into one of my daughters Roth IRAs from the time they were thirteen to the time they were 18. So fifty five hundred dollars a year and that's total contributions of twenty seven thousand five hundred dollars. All right just five years times. Fifty five hundred. And then I said zero is going in from 18 to 60 in this hypothetical I'm putting in fifty five hundred dollars a year into each daughter's Roth IRA. OK. So this is for just five years from the time they're 13 to 18. All right so Fifty five hundred dollars times the five years is twenty seven thousand five hundred. So that's all the contributions that are going in from me. And then at 18 it stops and it just kind of compounds on its own just on autopilot from 18 to 60. And at 60 years old. Twenty seven thousand five hundred that I had put in will turn into eight hundred eighty two thousand dollars. Yeah. I mean that is just a remarkable remarkable figure. And then if you actually add our prior example where are they go to college. They get out of college and they max out there for on canes for 10 years and then let that ride until they're 60. That's another 2.4 million. That's almost 3.3 million dollars that they'll have just for. Really what's a fairly small amount of contributions in the grand scheme of things about 200000 total in contributions so that is the power of time. That is the power of compounding and just starting early.
college, ira, roth
1290 - 1343 Jonathan Mendonsa And you have to contrast this with me and I'm the quote unquote success story you know I got the four year doctorate I got the professional degree I had the six figure income but my net worth at the age of 30 years old was negative six figures because I was paying down all these student loans. I pay down all the student loans aggressively because I found the rabbit hole I've discovered FI I want to crush this game. And so I have a positive net worth by the time that I'm 32 years old. And now let's say now that actually start sending every extra dollar I have to my student loans and specifically I max out my I start maxing out my 401 ks from the age of 32 to 60 and instead of only putting it in for I guess the 10 years that they were maxing out their 401k isn't that 22 to 32 year old example I'm maxing out my 401 ks for 28 years from 32 to 60. Brad how much would I have in my 401k with the path that I've chosen.
401k, college-loans, networth
1343 - 1453 Brad Barrett Yes. So in that example you've contributed $540000 right 18000 times 28 years and you would have 1.8 five million. And while that's still a phenomenal phenomenal amount it is significantly less than the person who started at 22 and only put in for 10 years. Right. So they put it in 180000 total contributions whereas you put in $540000 but they're ending up with 2.4 million and you have 1.8 five million. So there is no better example of the power of compounding and the power of time than that. In my opinion. So get started today. You might be a thirty nine year old listening to this and you're just getting on your Fi path. You have zero dollars of net worth. Your financial freedom clock is started and you're hearing this and you're a little demoralized. Well don't be sure. The best time to invest would have been 20 years ago. All right. Well that's all well and good. The second best time to invest is today get started today and take action right like that is what we always say here at ChooseFI is take action. You cannot worry about the past you can't get down about it. It's irrelevant. You found FI today and you can make moves to make your life better. In Jonathan's example he had huge amounts of student loans and he really was just getting started around the age of 32. Well you know what he's going to Max his 401K very very easily and certainly save significantly more than that. But just from the 401K he's going to have 1.8 five million dollars at the age of 60. So that in and of itself it should be a very positive and heartening thing for you out there so please don't think of this as negative. This is just to really illustrate how getting started today is the most important thing you can do.
401k, college-loans, networth
1453 - 1953 Jonathan Mendonsa And I think the other half of this is you know we constantly talk about second generation FI. But the reason this story is so powerful is because we as we've said over and over again we have two audiences for this. Yes. We have the decisions that we would like for you to be able to make right away but we're also always thinking about those years that our parents are going to be parents. How can we give you information that will change your family's future for the better. How can we give you information that you can use for your kids. And this is a show where we talk about these total life optimization strategies and we talk about the power of of the side hustle and how the side hustle is a full on pillar of fi. And if we believe that that's true if we achieve FI or if along the way we start building the side hustle and we start thinking about how can we incorporate our families into this when you have a side hustle it gives you a lot of flexibility. With starting to think how can you get your kids on this path earlier. And you know Brad is thinking about this how can I set my kids up knowing the power of time knowing the power of math. Is there a way that I can incorporate my kids needs into either my current businesses or is there maybe a business that I could start that I could bring them along side with me on so that they can start getting the stuff working sooner. And what's cool about what we've tried to do this whole time is share this learning curve with you. So we're not just doing this and keeping this information for ourselves. We're relying on experts that we know and we trust we're getting them to share to lower the barrier to entry to some of these more advanced concepts like how do you employ your kids or help your kids earn income at the age of 13. And then how do you move that income into some sort of Roth IRA because they're already at a zero percent tax bracket that has the ability to decrease your taxable income for this business that you've created. And at the same time fuel their Roth IRA and that will then leverage the power of time to crush this game for them. And I think the appealing thing for many people in the FI community is if you help your kids choose this path then the question about whether or not to leave them inheritance is it's a moot point but they've already chosen the path and they no longer need this inheritance that you may or may not leave. I think there's a lot of appeal there for people at all stages of FI and I'm excited that Brad is going to continue to learn the answers to this information and we're going to get to benefit from this and probably over the next five to 10 years. We're going to be able to implement some of these ideas and we're going to get to talk about it on the show. There's a lot of possibilities here and there's a lot of knowledge that a few people have figured out but it hasn't been distributed to the masses. And lowering that barrier to entry is what we're all about. The reason Gwen was on this show is because she latched onto these ideas and then she actually executed on these idea she actually did something and that's the one thing that Brad is always trying to push you know me personally and he's also trying to help our audience achieve is just take that first step whatever it is take that first step don't just passively absorb this information and it's entertaining on the 30 minutes that you're on the way to work and then you're done with that you've forgotten about it. Figure out what's the one thing you can take from each episode and then how can you implement this into your life to make your life better or easier in some small way. And so Gwen is a perfect example of what it looks like to find other people that inspire her and then implement those ideas. And then now she is inspiring to a completely different audience that is finding the concept to fly through her website through her blog and now through her podcast so she's able to share her story through all these different venues. It's cool to see. One other thing about Gwen that so impresses me is just her desire to be a part and help build a community. She has gone to multiple Chatauquas. She went to the camp moustache that we were at last year. She's actually going to be an organizer for a FI camp in the future. She is as involved in this community as you could ever hope for. And so it's really cool to see someone see how these ideas have benefited their life directly and then want to give back and help be a resource for other people. And I just find that entire story arc very compelling. So I have a pretty cool announcement to make. So we have brought up Steven and talked about Steven to you guys before and for those of you to whom that name is not familiar. Steven is the organizer of the camp down in Florida. And Steven has been aware for some time now that there is a very real desire to see some sort of organizational structure and some sort of platform that we can use to foster meet ups all around the world and certainly within the United States people are really looking for a way to connect with like minds. And Steven is willing to step up to the plate and he starting an organization called Camp fi which hopefully we will see spread all over the U.S. and hopefully around the world at some point. But he's taking time to see how he can help foster this. And he obviously has the experience from doing these camps in the past and he has the skill set. And I got to say to organize a program like this and to distribute this platform to multiple locations it does require a very specific skill set to bring in the right guests to create this environment that you not only want to go to but then once you've gone to it you want to tell all of your friends about it and you want to come back the next year and to provide a consistent experience from year to year. And we're super excited that we can partner with him on this project. And just to see where it goes. And I only bring this up now to tell you two things One that Gwinn has actually stepped forward to partner with Steven and she is going to be directing or hosting camps out of the Midwest and I believe she's going to be doing it out of Minnesota but she's actually looking for a location that we can use to have a camp FI in Minnesota for those of you that are in the Midwest that want to participate in an event like this and even more directly there is going to be a camp FI in Virginia. And Stephen is currently locking down the location and the place but for those of you that reached out to us that said that you were interested in participating in something like this. In your specific geographic location these are kind of pilots for that process. We're just looking to see how we can facilitate that. Be a part of it to get people to actually connect to like minds in their own community and in their own geographic region. I think it's going to be very cool. We're excited to see where it goes. But Steven actually said he's locking down the dates for April for a camp FI in Virginia so if that's something that appeals to you. There will certainly be more information all that coming to you both on the podcast but then also we talk about it almost on a daily basis in our Facebook group. And if you want to join the Facebook group just go to choose F-I dot com slash Facebook and we'll send you the invite to join that group and the conversation is continuing week round with over 3500 members. It is remarkable how quickly that group is growing and speaking to the Facebook group. This is the part of the show where we're we've been telling you for a while we're going to announce the other three finalists for the side hustle contest. And if you're asking yourself what is the side hustle contest. We featured the side hustle and give it its full episode back in episode 13 and we partnered with Alan Donegan to bring that to life. And I say we brought that to life that was 100 percent Alan. He is amazing and right now probably it's ending today. He's been out in Longmont Colorado with Mr. Money Mustache actually doing a pop up business school there helping entrepreneurs and future entrepreneurs turn their ideas into actual side hustle or business. This is just what he does. He goes all over the world now. It used to be more focused in Europe and the UK but now it's all over the world helping people just get off the couch and actually do something. Take action and start there side hustle. It's very cool to see and it's even cooler in our community the community where we talk about the side hustle on almost a daily basis as a lever that you can pull to free yourself from the hamster wheel. But even more than that Alan was unbelievably generous and he wanted to do something that he'd never done before and actually offer one on one coaching with a single individual for the next one to two years where he will help this person actually take their idea and walk it from the beginning stages where it's just been crafted to the very end of the product will help them across the entire journey and he'll do it both on and off the show so we'll be able to extract from this journey things that we can share with our audience. And so people submitted their ideas. The finalists were selected by a panel and then those finalists were offered up to our Facebook group to vote. And we because we had six finalists we split that up into two parts and we're going to feature the last three finalists for you today.
2ndgenfi, chautauqua, families, hustle, ira, roth
1953 - 2020 Brad Barrett And yeah it's really important to note that the reason we're doing this and the reason why we're spending so much time in the next year or two on this side hustle and on building this one particular business is not that. I mean of course we want to see this this one business succeed but most importantly we want you out there the audience to take action. Right so our plan is for every single month for Alan. And the winner of this competition to come on the podcast with an update and with a lesson from Allen. So this is going to be sequential right. That's the most important thing here you're going to be able to follow along and build your own business with Alan and with the winner of this competition. So while it will be interesting to hear about them and their business in and of itself the more important thing is we hope hundreds and hundreds of you start your own business and make this happen and give us updates and we can put you on the podcast right. This is this is about the community at large and we believe that the side hustle is an essential part of the FI path and like Alan said it should have been one of our pillars of fi and we are certainly dedicating time to make it one of them.
hustle
2020 - 2027 Jonathan Mendonsa So let me go ahead and get this thing started. And our first finalist that we're gonna play is Amjad.
2027 - 2248 Amjad - (voicemail contributor) Hey Brad and JonI'm calling in to compete in the side hustle competition. Thanks so much for posting this. I really value the work that you do and this podcast and so many others that educate and teach people about values and how to achieve financial independence. My name is Amjad Chaudhry I achieved financial independence in June 2016 at the age of 30. I continued to work another year pad my investments and to have some profit left over from my company to invest in other areas which I'm focused on doing in the coming months and potentially year how i became financially independent. Very briefly I worked in I.T. I graduated from C-u Boulder in Colorado a degree in computer engineering. I got a job even before I graduated thankfully and I was able to get my college loans very quickly because I was earning dollars for the first six months as I basically cost free in India and for the next eight nine years I consulted for enterprise retail companies through Infosys and IBM. Much of it through my own LLC which allowed me to have a greater revenue or a greater income that I otherwise would have had working as a full time employee. I retired from full time work just two months ago at the end of April and I've been traveling ever since thinking about my ideas and potential side hustles. And this competition has really come at a wonderful time for me because I've been thinking about these side hustles anyway and this competition has really motivated me to concentrate and focus more on what exactly I want to pursue my ideas I think are a little unique. But I have three or four main ideas I'll try and cover now. The first one is geographic arbitration. I've heard many good things about Puerto Rico in terms of business climate and new legislation being passed by the government to encourage investment into the island. This is largely driven by the fact that the island has been in the recession for a long time and are enacting policies now to help reverse that. And I'm a big believer in how good economics and good politics can can help any situation. And what I want to see how it can be part of the solution there by investing in the island and taking advantage of these of this new legislation then x 20 and 22 in particular which allow for zero percent capital gains tax for individual investors and 4 percent corporate tax for corporations that have export services from the island. So I think there's a lot of opportunity there. I will be going in September. I'll be staying there for the whole month to make sure it's a good climate. And to explore these opportunities. So number one is geographic arbitration. Shifting to Puerto Rico and expanding my software company there. I want to continue consulting for dev-ops engineers potentially but definitely would like to get into mobile app development side hustle number two relates to renewable energies which is a big interest of mine. I would like to build a solar farm in Puerto Rico. I believe it would be cost effective. I believe it would be profitable. The existing power infrastructure in Puerto Rico is unfortunate and outdated and not very reliable and I believe that the latest technologies. Solar power and battery storage and even the possibilities around the latest blocked chain technology and micro-grids could really benefit the society there and provide for more reliable and cheaper electricity for for the residents. And I'm looking forward to look into that further. I thank you again for this competition. I look forward to the responses and I hope the audience enjoys my ideas and that's it. Thank you. Adios.
college-loans, hustle, tax, travelrewards
2248 - 2251 Jonathan Mendonsa And then the next finalist is talis.
2251 - 2363 Tallis - (Startup Coaching Recipient) Hey Brad and Jonathan this is Talis. I am extremely excited about the most recent podcast episode the Friday roundup where Allen made an incredible offer to do. this popup school coaching one on one. I have been listening from the beginning and my husband and I have been making changes to how we save how we spend how we invest and let's just say we are well down the rabbit hole of hitting FI. So I would love to pitch my idea to Alan and I would love to work in this coaching. I used to teach dance ballroom dance full time. That was my full time hustle. I was competing professionally and doing really well doing that. And when I went back to school at my masters and I focused heavily on the benefits of dancing for people with Parkinson's. The thing that touched my life personally and there is actually quite a bit of evidence to show the tremendous benefit of dance for Parkinsons and since graduating I can now stay home with my son who's one but I am still teaching. On the side I'm offering classes for people with Parkinson's and I get hired to speak at conferences that are here in the Midwest. But the first question that I get asked when I'm speaking is. Can you please come to my town and offer a class. And that's something that's really hard for me to do right now. So I would love love love Allen's help in helping me franchise that's helping me teach other people how to offer my method so that I can help as many people as possible with Parkinsons and offer these classes well beyond what I'm able to do on my own right now. So Huge fan of the show. I would love to be chosen for this. I am super committed. I have the time i have the energy I have the drive again my name is Talis. And I hope so much to hear back from you guys soon. Good luck with the remainder of the show. Keep it going. Keep it coming. We love it. Thanks so much guys.
hustle
2363 - 2368 Jonathan Mendonsa All right. And then our our final finalist is Katrina.
2368 - 2591 Katrina - (voicemail contributor) It's me the the only one you want to know. Let's get acquainted for this FI show. I heard you call the entires and my ears perked up. I need coaching. I'm what's up. single working mother with two kids in tow trying to find freedom but make more dough working at the office all day and at home all night work hard work hard as the American plight I wake up in the morning and let the dog out. Teeth brush body wash steady rushing no doubt. I make breakfast and lunches and we're out the door. Hurry hurry hurry and there's so much more my morning commute over Mobile Bay while I think about the things to get done that day sitting at my desk checking off list all the time in my head. Man I miss my kids. I want more I need more and we deserve more. There's so much out there we've got to explore. Kids need more mom and I need more of them. I've got to find a way to make it happen. This balancing act is so unnecessary it doesn't serve me makes me grouchy contrary. I want to show them the world. I want to show them what's right. I want to show them all the things that bring love and light. But how do we do it. How do we win time or love or life we deserve. I know I know I'll get up the nerve I'll do something different. Develop some verve. This year's version was about stepping out out of my comfort zone. Try a new route. So what can I do that so far out. Totally not me and go all out. I need to think fast need something ASAP. What could be more crazy then for me to try to rap. I got no rythm but college taught me wrong I studied real hard and showed up on time I got a BA an MA and was on my way. Got married had babies stayed home and all that but that didn't last. And now it's this and not that back to work and I love it. Don't get me wrong I work hard pay the bills help with homework hit the hay. Just to wake up and do it again the next day. We need to find more time we need to find our zen I need to win some time with Alan Donegan when I heard about this contest I thought I can do this. So please choose me. And let's start a biz. So my name is Katrina Smith and I am a 38 year old working mother in Mobile Alabama. I work as a marketing coordinator creating the presentations and other marketing materials for engineering construction firm for 1400 people. I really do enjoy this. The work is challenging and I like creating visually interesting materials. My background is in art and education. I studied art therapy as an undergrad and got my master's in art education. While I don't have a ton of time on my hands I do like to spend my time bettering myself and researching ways to better the life of my kids and I and my kids are all so supportive of my ideas and like to help out. I recently started on the financial independence path I'm not currently financially able to travel with my kids. I like to create a life for us that involves more financial freedom and more time together. to set myself up I'm passionate about my children travel art fitness and nutrition the outdoors and hiking and camping with my kids along with many other things. Recently I've gotten into fitness and nutrition. After my divorce I found that very unhealthy and gained a lot of weight. Five years later I lost 40 pounds and become involved in fitness and wellness locally. I'm on the board at my local YMCA and soon I'll start training to be an instructor there. I don't have a specific business idea. Because I'm passionate about so many things and know that I can succeed at many businesses. The businesses in side gigs I have thought about before include fitness instruction personal training social media marketing and presentation creation for small businesses family travel blogging and financial independence blogging. from the single working mother perspective so pick me and let's figure out the best route for me. Thank you.
blogger, fitness, travel
2591 - 2687 Jonathan Mendonsa And I should say that Brad and I while we are unbelievably excited to be a part of this contest we are going to try to be somewhat dispassionate in our feedback and that's just because we really want our Choose FI community to be the one that gets a chance to vote on these and we don't want to have an undue influence on that process. And so the voting is going to be open from Friday morning all the way through Tuesday evening and people on our Facebook group our choose FI Facebook group will be able to vote on who they would like to go to the next round. And then the two finalists from each of these round will then go into a head to head poll which we will then ultimately choose this winner from. Thank you to everyone so much for your participation in this process it's been very rewarding and we hope that you continue to benefit from it. The ideas that our contestants have brought forward have just been unbelievably good. And any one of these will make for a fantastic story to follow and it's not just their specific business model. It's the thought process behind starting a business. It's the implementation of the tax code and it's using creativity as an alternative to going massively into debt to start your business so we're very excited to see how this conversation proceeds and what Alan is actually going to bring to this conversation that frankly Brad and I just simply wouldn't be able to offer. Very very cool to be a part of. Alright so this show is very intentionally done in segments where we want to feature these different concepts and ideas that all build together to tell a story. And occasionally we just get a career path that simply has to be highlighted as maybe an option that you hadn't considered before. And so I have a very cool voicemail that I want to play for you today.
career, debt, tax
2687 - 2931 Justin - Root of Good Hey Brad. Jonathan My name's Justin. AKA ATC fi will be the moniker that I'll choose for myself. I wanted to use that moniker because A T C stands for air traffic control fi Well of course everyone knows what that is wrong. I did not as of two months ago. I've been on an insane learning curve picking up all the different acronyms in things that you guys talk about. I never heard of fire. So it took some time for me to soak in all of the different concepts. But my wife and I have truly been changed because of your content. So I wanted to highlight my career today as one of the careers that maybe you could highlight on the show and let people know that there is a job out there that you could make really good money. Obviously that's relative. But you can make really good money at a young age with no debt or experience. Air traffic control is a awesome career that I've been in for five years. One can apply on USA JOBS dot gov. About once a year they come out with a bid. Sometimes less and all you need to do is go to the Web site and apply to be eligible you must be less than 31 years old. You must have three years of work experience in any job could be at a fast food restaurant or any job or a four year degree or a combination of the both. With a year and a half of full time work experience in a two year degree for example. But no one has to have a degree. You could have three years of work experience and be eligible to apply. You have to jump through many hoops with the federal government but once you jump through all the hoops you can begin training they send you to Oklahoma City for four months and you start off at a salary of 30000. But for those four months you also get paid a perdium of ninety seven dollars a day for living expenses and food. So the salary is closer to 50000. If you look at it from that perspective also once you graduate from Oklahoma they do send you anywhere in the country. There's different levels of facilities from level 4 to level 12. There's also tower which most people see at the airport and understand that it exists. And then there's also Center which is where I work depending on whether or not you get sent to a low level four or a high level 12 could be tower or center. The pay does drastically change. So once you get to your facility after you have four months of training in Oklahoma everyone starts off at 40000 depending on if you're level for the check out or certified pay is about 60000 give or take. But if you're at a level 12 in a high cost of living area let's say New York Center then the pay is somewhere around 140000. So it does take time to get certified. So let's use an example. You get out of high school and began pursuing some college. You're 19 years old. You've been working for three years plus you have a little bit of college. You're eligible. You could essentially start in Oklahoma maybe a year later at age 20. You could be 22 years old and be fully certified at a level 12 facility making 150000 give or take. Could be a little less could be a little more depending on what facility you're in. I have to say that was amazing. And anybody that hears that story probably is going to say that can't be true. But I assure you it is. So I wanted to highlight that career and let you know that I'm here if you would like to reach out and get any more information about it. I could certainly give you the odds and ends about it. So number two I wanted to let you know that I got my personal capital call today. It really made me laugh after listening to episode 32. I did download the personal Capitol app and insert all of our information and we get the call today. It really made me laugh and I had to reach out and just let you guys know that you're awesome. The show is awesome. The idea of a money making machine that is going to pay my wife and I for the rest of our lives really blows my mind and my wife and I or are full speed ahead gazelle intense to try to pursue the FI life. So thanks again guys. If you have any questions or anything for me feel free to reach out. Thanks again guys. ATC FI is out.
career, college, debt
2931 - 2932 Jonathan Mendonsa Your mind is blown right now innit.
2932 - 2935 Brad Barrett Yeah that's amazing. That's a heck of a job.
2935 - 2996 Jonathan Mendonsa Wow justin on so many levels. That is awesome. Just on the on. Let's talk about the first thing which is air traffic control. I had heard that that was a fantastic career path maybe somewhere from somebody. But there's two things I didn't know one. I didn't know that that was something that could be replicated that you could you know I didn't know the process for getting involved in that. And I can tell you I've already sent this voicemail to my brother who I think would absolutely be interested in this process two. We just started this conversation by talking about a case study of what it would look like to be able to get started with your first job at the age of 22. And how if you can avoid the hamster wheel of debt the six figures of student loan debt. And you could find a more optimized path. This is what that looks like. And I think the cool thing is it's just finding somebody else that's done it that can model it for you and then find out what that process actually looks like and then positioning yourself to replicate that process. That's what Gwenn did. And I think by having people like Justin be willing to step forward and share their story there are so many people that can benefit from that and all they needed was someone to plant the seed that it's possible.
career, college-loans, debt
2996 - 3052 Brad Barrett How cool would it be to have a list of jobs like this that exists throughout the country and the world bred I suspect there are many many jobs that people can potentially earn six figures and not need a college degree or in this case you know need some combination of work experience and some college. I mean it would be really neat if the community could come together and catalog these things so that second generation fire or people in college now or even just people looking for a new job have a list of these amazing options that we all just kind of have in our own little silos. You might know some information that would be helpful to thousands of people. And you have no way of getting it out. Well now you do. We'd love you to send this to us. Post it on the Facebook group or send it to our e-mail feedback at Choose FI dot com. And you know we'd love to mention you mentioned your job center voicemail in whatever you want. I mean this is this is an important project for the community.
2ndgenfi, college
3052 - 3150 Jonathan Mendonsa And then the other half of that is how quickly he's making progress and to get that personal capital phone call especially when you know it's baked in as one of the milestones. Very very cool stuff. So at every level doesn't think you've on a personal level just for sharing. I have family members that I've already shared that information with and I hope that people in our audience if they are interested in reaching out to you. They'll let us know so we can connect you guys but I'm sure you're probably going to get more interest than you're expecting. And we appreciate you taking time out of your day to help coach a few people through that process. For those of you that listen episode 32 and wanted to and are working on your milestones and wanted to use personal capital like Justin did just go to choose a dotcom slash PC P as in Paul C as in Cat. and that is an affiliate link. But you can get that software it's an app and it's software for your desktop totally free to use. And it's a fantastic resource to be able to track all of your different investment vehicles and finances in one place. Really really remarkable software that they put together. OK well unfortunately guys that is going to bring this episode to the end. We'd like to finish every single Friday round up by doing a drawing for a copy of a book that we found useful and we have been doing JL Collins book the simple path to wealth and also Dominic Quartuccio's book design your future and if you would like to enter that drawing very simple. All you need to do is just go to choose if I dot com slash iTunes. Follow the instructions there to leave us a short written review. And once you've done that just shoot us an email to feedback at Choose FI dot com. Just letting us know that you left the review and what screen name you left it under so we can match you up and then every Friday on the Friday round up we do this drawing for the book and we do one book for every five written reviews that we get. And we announce those winners on Friday. So Brad how many winners do we have today.
families
3150 - 3195 Brad Barrett This week we're giving away one book and the winner is Amy and Amy said Don't miss choose FI. This podcast has turned occasional car commutes into a pleasure and made my morning walks even better as I learned from the insightful thought leaders in the FI space. Well my interest originally started with Mr. Money Mustache. This podcast has taken over as my go to. It is truly connected the FI community and help me get new ideas on what will work best as I pursue my own FI path. I met Stephen the host of Camp moustache when I hosted an Atlanta area FI meet up in my backyard around the fire pit. The fire is spreading and I loved having so many ideas and perspectives to help keep me at the top of my game along this journey. Keep up the good work Brad and Jonathan.
Jonathan_Catchphrases

Stay Connected