038 | The Why of FI

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In today's podcast we discuss one of our most important topics: The Why of FI. Why we pursue this path, why we think it's a life ‘superpower' and how it can help you escape the hamster wheel of life decades earlier than most people could ever dream.

Not a good time for a podcast? You can read the article inspired by this episode here.

In Today’s Podcast we cover:

• Discussion of the Why of FI as an introduction to the concept of Financial Independence and why we’ve chosen this path and this community
• Jonathan’s explanation of the “hamster wheel” and what the normal ‘American dream’ looks like and why this will keep you chained to this treadmill for decades to come
• This is not a pursuit of freedom, but a pursuit of “stuff”
• You’re working full-time to afford these things that you can’t use because you’re working all the time
• The important thing to focus on is what makes you happy
• Time is your most important resource
• This is not about liking or hating your job. This is about freedom and taking the power back in your life
• The concept of drifting and Jonathan’s questions that can help you highlight this feeling in your life
• It is so hard for most people to find a way out of this life because they don’t have the time, energy or resources to figure a way out. But FI is the path out!
• FI is a truly optimistic message where everyone can make a difference going forward in their lives
• Instead of buying stuff, we’re looking to buy our magic ‘perpetual money making machine’
• We try to keep our savings rate as high as possible and investing in low cost index funds
• This is not a get rich quick scheme.
• You need to learn what you don’t know to get on the path to Financial Independence
• FI is about math and your savings rate
• FI is not about deprivation through frugality, but about making smart choices and optimizing things in life
• How Brad saves a significant amount of money by being smart about a handful of things like house, car, cell phone, cable and food
• Jonathan is a ‘reluctant frugalist’ but he has seen the value in pursuing FI
• FI gives you the power to choose what you do with your time and if you intend to work going forward
• You can start tomorrow to save money and pursue this path
• Now you can focus on what you actually want to do with your time in the future
• Most people’s lives would collapse within 3 months if they lost their jobs, but pursuing FI changes that entirely and gives you power to choose what you do
• You also have flexibility that would have been previously impossible

Links from the show:

• Dominick Quartuccio (plus Episode 33 of the ChooseFI podcast)
• The Shockingly Simple Math Behind Early Retirement

Books Mentioned in the Show:

• Outwitting the Devil