Today we have Joel and Alexis from FI180.com on the podcast. They changed their financial lives dramatically, going from spending over $100,000 per year to having an 85% savings rate and on the path to FI in just a few short years.
Podcast Episode Summary
- Joel and Alexis from FI180.com tell their story of how they went from spending over $100,000 per year to having an 85% savings rate
- FI can only be a few steps away and this story is the perfect example
- They bought new cars, a new house and didn’t track their spending at all
- In 2014 Alexis was in a terrible car accident and that led to the awakening that changed their financial lives. They took the $10,000 they received from the car and invested it in Vanguard
- The costs (financial and health) and opportunity costs of a long commute
- Every month they tried to make one change to improve their finances
- Their savings rate was only 7% at their lowest and last year it went up to 85% (since lowered to about 75%-80% to add happiness)
- Joel’s brother is also on a path to FI now and is “racing” them to FI
- It isn’t a race though – it’s about enjoying the journey and finding happiness
- Their happiness has increased after finding this path to FI. “Happiness is the goal”
- “We were using our spending as a way to try to numb the effects of a workday”
- They have learned how to cook at home and save money and eat better. Previously were going out to eat twice per day!
- Line items from their ‘Our Savings Snowball’ article on what they were previously spending and what they are spending now
- The awakening when they chose to pursue FI after the car accident in 2014
- There are certain things that are in your control and others that aren’t. Focus on what is in your control
- Hot Seat Questions
- Favorite blogs: Mr. Money Mustache and The Wealthy Accountant
- Favorite life hack: Alexis was not allowed to go shopping without a list and couldn’t buy anything not on the list. As well as not using a shopping cart or basket
- Food shopping game called the “$3 rule” where they tried to see how many “luxury items” they had over $3 at Aldi each week
- How to save big at Aldi on your food bill
- Biggest financial mistake: The house they bought originally in Florida at the height of the housing bubble which almost immediately went down 60% in value
- Their thoughts on investing in real estate
- Is Alexis leaving her job next year or just Joel?
- Joel’s advice to his younger self: Reading his post to his 22 year old self
- FI 180
- Money Mustache – The Shockingly Simple Math of Early Retirement
- The Stock Series at JL Collins NH
- Our Savings Snowball at FI 180
- The Wealthy Accountant
- How Big is Your Circle of Control? at Mr. Money Mustache
- Joel’s Guest Post at Fiery Millennials: A Letter to My 22 Year Old Self
- FI 180 on
