084R The Mindset of FI

084R | Mindset of FI

The essential steps to a FI mindset, travel rewards updates from Brad, voicemails from the community, and highlights from Monday’s episode with Jillian from Montana Money Matters.

  • Brad’s 15-year-old Honda might breakdown soon. How much should he be willing to spend on repairs?
  • How much does depreciation impact specific cars, and how much should that weigh into Brad’s decision?
  • Review of Monday’s episode with Jillian from Montana Money Matters. Discipline equals freedom.
  • How can we train ourselves to withstand fear?
  • What was Jillian’s strategy for creating the life she wanted?
  • Chad, from Facebook, was excited by how relevant and relatable Jillian’s story is, even for people with vastly different life circumstances.
  • Voicemail from Tay, who is hoping to find a step-by-step guide to getting from zero to FI.
  • Mindset recommendations from Jonathan:
    • Exposure yourself to the right information – podcasts, books, articles, etc.
    • Practice a growth mindset – be willing to make changes.
    • Accept and celebrate marginal gains, as they compile.
  • Nuts and bolts recommendations
    • Evaluate your current financial landscape – what’s going in and out?
    • Which scenario describes you?
      • Are you in debt?
      • Do you live paycheck to paycheck?
      • Is your income higher than necessary, but not achieving your goals?
    • What you earn – what you earn = The Gap
    • Increasing “The Gap” comes from optimization.
    • Getting to a 50% savings rate is a different scenario for every person.
    • Finding ways to create passive income through real estate, side hustles or investments.
  • Maxing out your retirement accounts decreases your taxable income.
  • Message from Carrie, is looking forward to minimizing.
  • Voicemail from Jason, hoping for an update on travel rewards.
    • Chase Sapphire rewards have decrease the rate at which you can get rewards
    • Brad still recommends as the best travel rewards
    • Chase Ink Business cards are a great choice for someone with a business.
    • Generally, best use is to transfer points to an airline partner for airline miles.
    • Starwood Preferred Guest program is end on Aug. 1, 2018
    • Barclaycard Arrival Plus just returned as a fixed-value, personal card.
  • Voicemail from Tyler, suggesting that doesn’t have to be an expensive hobby, and talking through his method for optimizing his golf hobby.



The Beginner’s Guide to FI

The 10 Pillars of FI

Arsenal Discs

The Simple Path to Wealth

Design Your Future

Freelance to Freedom

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8 thoughts on “084R | Mindset of FI”

  1. On the Chase Sapphire Reserve, at least in late 2016 when I got mine, the $300 annual credit for travel was based on calendar year. So if you get the card now, you can spend $300 in 2018 and another $300 in 2019. I don’t know if this is still the case, but we ended up $150 up, not $150 down.
    Bonus tip: you can add the money to your ezpass account and that counts as travel. Prepay $300 of your tolls for free!

  2. When it is time for Brad to buy a car, I think he should just buy a new one. The cash for clunkers program (where the government paid people to destroy perfectly good cars) really damaged the supply of used cars and caused higher prices. Surprisingly, almost a decade later, things haven’t improved much in the used car market. You are far better off paying an extra $4,000 and getting a new car with a full warranty rather than buying used. Also consider that with the used car, you may need to get a new battery, new tires, new belts, etc.

    Brad, don’t feel guilty buying a new car. Right now, it may just be the best value. And there is something to be said for our time. You don’t want to buy a really old car and have to worry about it breaking down and spending hours at a repair shop. As long as you plan to drive it for a long time (which we know you will), then it can make sense to buy new.

  3. The price comparison you described is not quite true in the real world of automobile sales. The numbers you quoted seem to be based entirely on internet searches. I believe the face to face haggling during the purchase will result in vastly different prices.
    Having purchased our last three used Hondas from a small town Chevrolet dealership, let me share a piece of advice that will change the way you buy cars forever.
    Most new cars will lose half it’s value at three years of age. Given the fact that 250,000 miles is the new 100,000 miles as far as longevity goes, purchasing new automatically loses half what you pay.
    Carfax is your friend. All of our purchases came with a report that shows detailed ownership and maintenance records that give us peace of mind.
    That’s my two cents that we have proven to be true three times over.
    Great show, keep up the good work!

  4. Brad, carmax has a huge markup on used cars compared to shopping around, its like just going to best buy to buy a tv compared to shopping around online. A quick search in your area on cars.com shows a 2015 civics for $12,500 asking with under 40k miles. Recently, consumer reports hasn’t been rating the civic as high as it used to like it did back in the early 00’s. You might want to also look into corollas and mazda 3’s as well.
    Since you drive so infrequently, you can lower you cost even more by going with an even older model and own it from 100k to 200k miles or about 15 years. I’m seeing a 2015 corolla with 70k miles for $9.9k or 2011 corolla with 115k miles for $6.4k in your area.

  5. When I signed up for the Sapphire Reserve in late 2016, the $300 annual travel reward was based on calendar year. So for a single annual fee, I got $300 in travel in 2016 and another $300 in 2017. Plus I got TSA Pre-Check ($85 fee) reimbursed, which lasts for 5 years. So I definitely came out ahead.
    Bonus tip: E-ZPass is considered travel! So since my family wasn’t planning any trips at the time, we added the money to our E-ZPass account and pre-paid for tolls. While we don’t spend as much as many others on tolls, it still was nice to not see that E-ZPass charge on our credit card for quite a few months afterwards.

  6. After listening to a bit of the story about the civic and the gas odor problem which is probably minimal to repair I was totally shocked when you mentioned that the car only had 120,000 miles on it. Honestly, I think that with stuff like this you just have to have the mentality that I’m going to fix it until it just can’t be fixed and keep driving the car. Failing that it’s so easy to make excuses to buy new car because you can talk yourself into it so easily and your friends will more than likely help!
    Full disclosure; I have a 2004 Honda Oddysey which has 205,000 miles on it so I will admit to being a little biased.

  7. I enjoy hearing the two of you talk through an FI problem (the car). Notes from this episode: Discipline = Freedom; doing the right things habitually. Intention. “Creating your ideal life and line it up with your current spending–where is the disconnect? If you say this is important and you’re not spending time or resources on it there is a disconnect. Might mean giving up things you kind of life to get the things that you love.” “The Why of FI is infinitely more important than the How of FI”, “Saving money when you have your why is easy”. I really liked the talk through of the basics of FI and that each of you had a different venue of expertise. “Winning at Life” should be on the back of your ChooseFI tshirt!

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