068R | 2 Worlds Collide

ChooseFI 068R 2 Worlds Collide

The next steps after Dave Ramsey’s Peace University, the importance of being present and food budget hacks.

What you’ll hear on today’s show:

  • Review of Monday’s episode
  • Brad’s life improvement thanks to FI
  • How to use Dave Ramsey’s lessons
  • Question from Chris about Dave Ramsey
  • What the next steps after the Peace University look like
  • Why and how credit cards can be useful
  • Jill talks about being nervous going back to credit cards
  • Michelle says the episode 68 is great to send to Dave Ramsey fans
  • The great advantages of working on a budget as a couple
  • Comment from Nick about paying off a mortgage
  • How FI is not about deprivation
  • The importance of being present
  • Voicemail from Louisa on a food budget hack
  • The video series on different food hacks
  • Voicemail from Ashley on her frugal win of the year
  • College hack on graduate assistantships
  • An article on the dangers of robo-advisers
  • Voicemail from Jesse about optimizing cash-back rewards
  • iTunes and book giveaway

Links from the show:

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4 thoughts on “068R | 2 Worlds Collide”

  1. There is a possibility that normal ageing may be causing reversal of nearsightedness. This process starts around the age of 40. Please look for presbyopia. Awesome podcast! Keep up the great work.

  2. Hey guys. Glad my comment was able to help expand the discussion. To Jonathan’s point, about delaying entry into the market, I forgot to mention where we were age wise which does make a difference. We paid the house off shortly after I turning 28, and with the 3.5 year payoff time, we were not delaying our entry into the market that long. Since, we weren’t appreciably delaying entry and were doing something that we thought would empower us to stay in, good or bad, it was the optimal choice for us.

    Jonathan also hit the super key point of enough. If both options (pay off mortgage vs. invest instead) get you to enough, then what does it matter if one is less than the other? That’s like complaining about your sundae just because you didn’t get the cherry on top.

    I would argue that if you can pay off a mortgage on a very compressed time frame, and early in life, paying off the house isn’t even sub-optimal from a mathematical standpoint and in many scenarios, you come out objectively ahead (I’ve done the math, and it isn’t every time, but it’s a lot more often than you might think). For the same reason sequence of return risks occur. The market doesn’t return a steady 8%, it is a wild mix of up 20% years and down 20% years (or more either way). Catch a few down years just by luck in that window and voila! You objectively make more money. (You’ll notice this looks like market timing, but it’s not, you don’t try and time it, it is just a byproduct of the method.) You might also miss some up years, but if the market is up 20%, you don’t lose anything for not having money there, you just don’t get anything for not having it there. If the market goes down 20% you don’t lose anything for not having money there, but you do lose something if you have money there. Pick your poison I suppose.

    I think the key is to make the decision early. In the early years your savings rate affects your progress much more than your rate of return. Be early, be deliberate.

  3. Hey guys,
    Just wanted to make a clarification regarding The voice mail from Jason on college options.
    His blog is Reachingourbalance.com NOT Reaching for Balance


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