032R | The Friday Roundup

Podcast Episode Summary

The Friday Roundup after the Milestones of FI episode with Joel from FI 180

We’re having a FI get together in Richmond and hope to expand beyond Richmond

The gamification aspect of personal finance and the milestones

When your ‘financial freedom clock’ starts and discussion of where certain types of debt plays into the calculation

Financial freedom clock equals positive net worth and all junk debt is paid off

Milestone two is when you have a $100,000 net worth (when Personal Capital starts calling you for a personal consultation)

The next milestone is ‘FU Money’ and there is discussion on where this fits into the continuum as the concept is nebulous

Should there be a milestone before $100k net worth and FU money?

Adding in ‘checkpoints’ along the way on the journey to FI in addition to milestones

Milestone four is ‘Half FI’ which means you have 12.5x your annual expenses saved up

Milestone five is ‘Lean FI’ which means you have enough to cover all your core expenses for life (not including your discretionary expenses)

The discussion surrounding the math and psychology of paying off your mortgage or not paying it off

The next milestone is the “crossover point” where your investments earned more than you did from working in a given month

The many catchphrases of Brad and Jonathan

Milestone 7 is Flex FI, followed by Financial Independence as Milestone 8 and Milestone 9 is Fat FI

The power of the concept of Flex FI and how you have an 82% chance of succeeding even at this milestone

The conversation surrounding where Brad is on the path to Financial Independence and where the side hustle factors into the calculation

Our ask that the community helps us refine the milestones and checkpoints

How Joel’s FI journey and drawdown strategies can be a case study going forward

Voicemail from Noah from Money Metagame on hacks to save on utilities

Take action and make the calls to compare prices on auto insurance, utilities, etc.

Frugal win of the week from Michelle about unclaimed property

Frugal win of the week from Vicki about Magical Iced Coffee

Input from Don and Scott about buying cards and gift giving

Focus on our discussion about gift giving from a prior episode and the Five Love Languages

Itunes reviews winners

Life Optimization

FI Frugal Hobbies | Chris Terrell | Ep 429

Whether you’re years into your FI journey or just beginning, evaluating your finances and spending, you may feel like you have to make some cuts into your favorite hobbies in order to reach your goal quicker. However, deprivation and cutting out the things that bring enjoyment into your life should never be the only option. This week we are joined by friend of the podcast Chris Terell to talk frugal hobbies, new experiences, and the parallels between strategies in board games and the strategies employed while on the journey to FI. While trying to optimize your experiences may mean changing hobbies and evolving, while doing so you may find new enjoyment, new communities, and values that come with these changes. Not everyone may have the same approach to a game, just as not everyone will have the same approach to achieving FI, but as long as you remember that being open to changes will allow you to not only optimize your experiences on that journey but optimize your FI.

Life Optimization

Fees, Frugality, and 401K Fears | Ep 428

On what is considered a very personal journey, how do you handle changes that feel like setbacks? Whether its spending more when you feel you should be saving, or re-evaluating goals based on what needs immediate attention, do you feel equipped to handle it with confidence? This week we are having a weekly roundup, and are re-joined by Ginger to not only answer listener’s questions, but discuss travel rewards, retirement accounts, and breaking away from the ultra frugal caricature often depicted alongside FI. While saving is an important factor on this journey, the main purpose of FI is to learn and live your life with intention as it relates to your money, goals, and values. Remember that it’s okay if some of your goals and values will change along the way! Allowing yourself to be flexible as it relates to external factors, like market volatility and your investments, will give you more power and control to continue ahead with confidence and optimism!