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Today we have Kristy and Bryce from Millennial Revolution on the podcast to discuss home ownership, international geographic arbitrage and much more…
In Today’s Podcast we cover:
- A discussion with Kristy and Bryce from Millennial Revolution
- They initially were contemplating buying a house and were shocked by the process
- This is what led them to finding the Financial Independence community
- Home ownership seemed like a “cult” to them
- What did their financial life look like before finding financial independence and how did they save so much money previously?
- Who might be naturally included to FI and how everyone can be open to it
- FI opens up creativity that you otherwise wouldn’t have the time for
- Voicemail from David from Canada
- How difficult it is societally to not purchase a house
- You need to do the math behind home ownership and don’t succumb to the ‘fear of missing out’
- All the other costs that are involved in home ownership that eat into your paper gains
- A house is not an investment, it’s a place to live
- The power of compounding and the Rule of 72
- How would someone do the math to compare renting versus buying?
- The 1% rule
- Introducing leverage into the scenario of buying a home
- What do they invest in? Low-cost index funds
- How often they rebalance their portfolio and how they came up with their 60/40 split
- It is less expensive for them to travel the world than live in Toronto
- Their annual spending their first year of travel was $40,000 but they were able to cut that to roughly $30,000 in year 2
- How they believe everyone could live the same lifestyle if they were willing to break their mental block with owning a home
- How would they recommend people get started with international travel and geo arbitrage?
- Budget airlines and bus companies help them travel throughout Europe for a fraction of the expected costs
- What do they do with lodging when first visiting a city?
- The ‘secret’ location they’ve found in London to stay for a fraction of the cost
- How nobody else in the world worries about health costs like Americans do
- How much could you reasonably spend for a year of living in Thailand
- The little enclaves of expats that exist throughout the world where they’ve found to live for less
- Their summarized advice for David from Canada
- Hot Seat Questions
- They actually have a financial advisor, but they don’t outsource their knowledge to someone else
Links from the show: