098R A Cautionary Tale in Hyper Debt

098R | A Cautionary Tale In HyperDebt

An exciting conversation with Jared about his path to FI as a traveling physical therapist and his current 5-month trip abroad, as well as a voicemail about healthcare planning and a review of Monday’s episode.

• Brad and Jonathan are releasing this episode while in Greece.
• Brad talks about the challenges of buying foreign currencies before a trip abroad.
• Travelers can open a Schwab Bank High Yield Investor account to get an ATM card with no transaction fees, and the flexibility to get more currency when you need it.
• Review of Monday’s episode: is a degree worth it at more than $100k a year in student loans?
• Brad and Jonathan were surprised to learn how much Samm paid for school, compared to the average income for a dentist, and the student loans that almost all dentists take on. Listen to the full episode with Samantha Keith here.
• A Facebook post from Jim to share that he’s 100% debt free.
• A voicemail from Jordan (3rd generation FI), who spoke with his employer about high 401k administrative fees, and ultimately his employer agreed to cover those fees and help employees save more.
• Message from Jennifer: concern about planning for healthcare in the future.
• Voicemail from Cara with strategies for healthcare planning:
◦ Purchase a good disability insurance policy
◦ Aim for Fat-FI
◦ Take the best care of your health possible
▪ Go to regular doctors and dentist appointments
▪ Use traditional health insurance, not high deductible
▪ Stay geographically near good healthcare if necessary
• Jared graduated from physical therapy school in 2015 and is working as a traveling PT while saving almost 90% of his income.
• In the healthcare profession there are many travel jobs that pay more because they are temporary positions.
• Jared and his girlfriend are taking 5 months to travel the abroad, even though he’s not quite at FI.
• 11 countries + 5 months = $6,000
◦ Most significant flights were purchased through credit card rewards.
◦ Majority of the trip will be in southeast Asia, which is inexpensive.
• How did Jared decide where to travel, and how did he plan his hotel stays through reward points?
• Save money on structural expenses (flights, lodging) so that you can spend more on activities.
• How does Jared manage his health and fitness while traveling?

 

Resources mentioned in today's show:

“How to Avoid Paying Bank Fees While Traveling” – Millennial Revolution

Happiness Gratis

Fifth Wheel Physical Therapist

Your Financial Resilience Toolkit

Affiliate Disclaimer

ChooseFI seeks to uncover helpful services that help you be financially resilient. However, we may receive compensation, at no cost to you, from the issuers of some products mentioned in this article, including from CardRatings for our coverage of credit card products. Opinions are the author’s alone, and this content has not been provided by, reviewed, approved or endorsed by any of these entities. See our disclosures for more info.

We've updated our Top Cashback Card! Check it out!

Save on Existing Loans

Save On Living Expenses

Save & Invest

Financial Emergency Prep

8 thoughts on “098R | A Cautionary Tale In HyperDebt”

  1. We have a kiosk at our local mall that deals in Foreign Exchange (forex). The prices are posted as we buy at x and we sell at y, y always being significantly higher. They call this the bid/ask spread (or something like that). This was common in the stock market years ago and still exists, but the difference is in some tiny fraction of a penny for most stocks such that we never notice. FOREX and Gold markets (probably all precious metals) seem to amongst be the remaining markets where this gap is so noticeable. You are doing a great service to point this out and the solutions to it. This is one of those you don’t know it (or notice it) until you do items. Thanks!

  2. One of you mentioned having a USAA checking account. You can use your ATM and not pay FTF and get reimbursed an ATM fee if there is one. No need to open a new acccount!

  3. Just a quick clarification. PSLF (public service loan forgiveness) is not the same thing as IBR (income based repayment) although it seemed these terms were being used interchangeably in the roundup. PSLF is a program to forgive your loans with 10 years of qualifying payments. The caveat is that you have to work for a qualified non-profit. The major benefit besides being a much shorter time frame is that the forgiven loan value is not taxed. You can use a IBR plan to make qualifying payments in PSLF but not all IBR payments qualify for PSLF (if you do not work for qualifying non-profit). IBR will be forgiven after 25 years of payments regardless of you work for and unfortunately will be taxed.

    • I agree. It’s very important to use correct terminology here and it was used incorrectly throughout both of these episodes. Also, in IBR you pay 15% of discretionary income. PAYE and REPAYE are 10%. This landscape is much more complicated than discussed here

Leave a Comment